Blackstone using discounts to lure investors into $40B fund
June 12, 2018
Blackstone has begun offering LPs fee breaks and the option to delay payments as ways to rev up interest in the firm's planned $40 billion infrastructure fund, according to the Financial Times. Announced in May 2017, the vehicle is expected to primarily make direct deals in US infrastructure. Blackstone originally planned to gather half the capital from Saudi Arabia's Public Investment Fund
But raising the necessary money hasn't been easy, with Blackstone president and COO Tony James reportedly saying in February the fundraising run could last as long as a decade. The firm got more bad news in May, when the White House announced its planned $1 trillion infrastructure package would not reach Congress by the end of the year. President Donald Trump had previously vowed to increase spending on infrastructure shortly after being elected.