RIYADH: U.S. private equity firm Blackstone and Saudi Arabia's main sovereign wealth fund said on Saturday they planned to create a US$40 billion vehicle to invest in infrastructure projects, mainly in the United States.
Blackstone and the Public Investment Fund signed a non-binding memorandum of understanding for the project, which will depend on further negotiations.
The U.S. firm said it expected the vehicle to have US$40 billion of equity commitments, with a US$20 billion anchor investment from the PIF and the rest of the money obtained from other investors. Through this equity and debt financing, Blackstone expects to invest in over US$100 billion of infrastructure projects, it said.
(Reporting by Andrew Torchia; Editing by Alison Williams)