Blackstone (BX) Fund Secures $20 Billion from Saudi Arabia in Exchange for Fee Discount
Blackstone Group LP ’s new infrastructure fund allows Saudi Arabia to invest at a discount. What it gets in return is massive funding from the kingdom.
For every dollar that an investor pays Blackstone to manage its cash, Saudi Arabia gets to pay 15 cents less. Saudi Arabia’s sovereign wealth fund has committed as much as $20 billion to Blackstone for creating the world’s largest infrastructure fund.
According to Bloomberg, the terms (the majority of which remain undisclosed to the public) include various concessions. There could potentially be lower management and incentive fees for the Saudis, as well as additional discounts based on a percentage of the revenue the fund generates from its other investors, as suggested by a Bloomberg report.
The infrastructure fund was first unveiled during a visit by Chief Executive Officer Stephen Schwarzman and President Donald Trump to Riyadh in May 2017. By the end of September, the infrastructure fund had raised $2.5 billion from outside sources.
Amid tensions between Saudi Arabia and other nations following the death of journalist Jamal Khashoggi, several companies including Blackstone have either cancelled visits to -- or put off deals with -- the kingdom. However, as far as Blackstone’s new infrastructure fund is concerned, the company said that it will go ahead with building the fund, while also taking stock about the ongoing tensions. “Like everybody, we’ve been concerned about what we’ve been reading the last couple weeks,” Blackstone President Jon Gray said. “We take a long-term approach both to our relationships and to building businesses.”
Saudi Arabia's Public Investment Fund initially proposed partial ownership of the vehicle, but Blackstone refused - according to the people familiar with the talks (as reported by Bloomberg). However, Bloomberg also indicates that the costs borne by Saudi Arabia’s sovereign wealth fund might decline as they increase their capital contribution to the Blackstone fund, in addition to enjoying lower starting costs compared to many other investors of the infrastructure fund.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BX in downward trend: price dove below 50-day moving average on September 09, 2026
BX moved below its 50-day moving average on September 09, 2026 date and that indicates a change from an upward trend to a downward trend. In 31 of 43 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 72%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 01, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BX as a result. In 50 of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 65%.
The Moving Average Convergence Divergence Histogram (MACD) for BX turned negative on August 20, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 38 similar instances when the indicator turned negative. In 26 of the 38 cases the stock turned lower in the days that followed. This puts the odds of success at 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.
The Aroon Indicator for BX entered a downward trend on September 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BX's RSI Oscillator exited the oversold zone, 22 of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 73%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for BX moved above the 200-day moving average on August 25, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +0.75% 3-day Advance, the price is estimated to grow further. Considering data from situations where BX advanced for three days, in 212 of 304 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
BX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 12 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: BX's P/B Ratio (10.695) is slightly higher than the industry average of (3.383). P/E Ratio (28.749) is within average values for comparable stocks, (26.087). Projected Growth (PEG Ratio) (1.171) is also within normal values, averaging (1.018). Dividend Yield (0.041) settles around the average of (0.088) among similar stocks. P/S Ratio (7.440) is also within normal values, averaging (16.113).
The Tickeron SMR rating for this company is 32 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating fairly steady price growth. BX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 76 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of investment and fund management services
Industry InvestmentManagers
Advertisement