Wednesday, 10 May 2023

BlackRock Seeks $1 Billion for New Fund With Middle East Backing - Bloomberg

BlackRock Seeks $1 Billion for New Fund With Middle East Backing - Bloomberg

BlackRock Inc. is seeking to raise an initial $1 billion for a new Middle East infrastructure and private equity-focused fund with some of the region’s largest sovereign wealth funds, people familiar with the matter said.

Saudi Arabia’s Public Investment Fund and the kingdom’s state-backed Hassana Investment Co. are in talks to contribute money, the people said. Abu Dhabi wealth fund Mubadala Investment Co. and other international investors are also considering backing the new vehicle, according to the people, who asked not to be identified as the matter is private.

While the first close of the fund may raise about $1 billion, the pool of capital could eventually increase to several billion dollars, according to the people. BlackRock is considering domiciling the fund in Abu Dhabi Global Market, the emirate’s international financial free zone, with operations run out of Riyadh, the people said.

Discussions are ongoing, and no final decisions have been made on the fund’s size or investment partners, the people said. Representatives for PIF didn’t respond to a request for comment. Representatives for BlackRock, Hassana and Mubadala declined to comment.

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