BlackRock targeting $1bn for new Middle East infra PE fund

BlackRock Inc is targeting an initial $1 billion fundraise from some of the Middle East's largest sovereign wealth funds for a new private equity fund focused on infrastructure investments in the region, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing that Saudi Arabia's Public Investment Fund and the kingdom's state-backed Hassana Investment Co are in talks to contribute money, while Abu Dhabi wealth fund Mubadala Investment Co and other international investors are also considering backing the new vehicle.

While the fund's first close may raise about $1 billion, total capital commitments could eventually reach several billion dollars, according to the sources, who have also confirmed that BlackRock is considering domiciling the fund, which will operate out of Riyadh, in the Abu Dhabi Global Market.