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.
BX's RSI Indicator recovers from oversold territory
The RSI Indicator for BX moved out of oversold territory on June 04, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 29 similar instances when the indicator left oversold territory. In of the 29 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for BX just turned positive on July 02, 2026. Looking at past instances where BX's MACD turned positive, the stock continued to rise in of 37 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BX advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 58 cases where BX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on June 24, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BX as a result. In 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 .
BX moved below its 50-day moving average on July 08, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BX crossed bearishly below the 50-day moving average on June 29, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 of 62 cases within the following month. The odds of a continued downward trend are .
BX broke above its upper Bollinger Band on June 16, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BX entered a downward trend on June 12, 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.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (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 (17.301) is slightly higher than the industry average of (3.745). P/E Ratio (30.415) is within average values for comparable stocks, (25.814). Projected Growth (PEG Ratio) (1.394) is also within normal values, averaging (1.290). Dividend Yield (0.042) settles around the average of (0.092) among similar stocks. P/S Ratio (7.386) is also within normal values, averaging (17.357).
The Tickeron SMR rating for this company is (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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (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 (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 81, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (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.
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