Gillian Tan, Columnist

Is Blackstone Shovel-Ready?

It gains a big backer for its $100 billion infrastructure strategy, but scale may not necessarily be an advantage.

May 22, 2017 at 6:42 PM UTC

Gillian Tan is a senior reporter covering finance and alternative asset classes including real estate, infrastructure, private equity, private credit, venture capital and sports business. She previously wrote an opinion column for Bloomberg and was a reporter at the Wall Street Journal. She is a qualified chartered accountant.

1495473576_bridge — Photographer: Tomohiro Ohsumi/Bloomberg

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Blackstone Group LP doesn't do anything in half measures.

The New York firm on Saturday said it plans to spend $100 billion on infrastructure, anchored by a $20 billion investment from Saudi Arabia's Public Investment Fund. It's aiming to raise another $20 billion from other investors, and will finance the rest with debt. The move sent Blackstone's stock more than 7 percent higher on Monday, with number crunchers calculating that the management and performance fees associated with such a gargantuan fund could bolster its shares by as much as $5 apiece over time.