American private equity and investment giant Blackstone has said it is nearing completion on a $5bn fund which it will invest primarily in US infrastructure projects.
In the week that President Donald Trump outlined his desire to block Chinese investment in US technology firms, and with home motorcycle favourite Harley Davidson announcing plans to move some operations out of the country, this is a welcome move.
According to the Financial Times and Bloomberg, Blackstone expects to close on $2.5bn from public pension funds and institutional investors, with some of the other half coming from Saudi Arabia.
It is thought that much of the focus will be on regenerating key US infrastructure like roads and airports.
This was a key pledge made by the US President during the election campaign and was reiterated during his inauguration speech. A commitment to spend or raise $1.7trn in investment over the next decade was made, however, these plans are yet to come into practice.
Last year Trump visited Saudi Arabia and secured a deal which would see the Kingdom match commitments made by outside investors up to $20bn.
Blomberg expects this first close to complete by the end of the week, slightly behind Blackstone’s schedule.