Blackstone's financial ties to Saudi Arabia

Blackstone reported Q3 earnings this morning, and during an analyst call was asked about possible pressures related to the Saudi Public Investment Fund's anchor commitment to an infrastructure fund that so far has garnered around $5 billion (total target of $40 billion, half of which could come from PIF). An executive replied:

"We've been concerned by what we've been reading... In the short-term we may get some questions, but the key thing to remember is our investors know Blackstone is the sole GP of the capital. We have sole discretion... Investors have enormous confidence in us which is why we believe we're on a path to growing [infrastructure] to large-scale despite some near term challenges."

The only real exceptions so far have been Richard Branson and Ari Emanuel, who have both pulled out of tangible business deals with the Saudis. But expect reporters and investors to begin asking these more consequential questions, particularly as the conference fades into the past. And we'll see if Blackstone is right that this is only a "short-term" issue.

Go deeper:

• The unraveling of Saudi Arabia's "Davos in the Desert"
• Dina Powell to attend "Davos in the Desert"
• Blackstone's Steve Schwarzman bails on Saudi finance conference