File 026447
Email Regarding Blackstone Investment Fund and Saudi Arabia Defense Business Announcements (File 026447)
Email from Jeffrey E. to Leon Black discussing Blackstone's $40 billion investment fund announcement and analysis of Saudi Arabia defense industry commitments, with commentary questioning the validity of preliminary agreements.
Summary
This email discusses Blackstone's announcement of a planned $40 billion investment fund with $20 billion to be raised from other investors through a non-binding memorandum of understanding. The message includes critical analysis from Brookings Institution Senior Fellow Bruce Riedel, who disputes the legitimacy of Saudi Arabia defense industry commitments announced during a Trump administration initiative, arguing that many are merely letters of interest rather than binding contracts. The email concludes with standard confidentiality and legal privilege notices.
From: jeffrey E. [jeeyacation@gmail.com]Sent: 6/7/2017 12:03:23 PMTo: Leon Black"Blackstone anticipates that the program will have $40 billion in total equity commitments in a permanentcapital vehicle, including $20 billion to be raised from other investors," Blackstone said in a statementannouncing the planned launch of the investment fund. "The MOU is non-binding and the parties will continuetheir negotiation to agree definitive documentation."Brookings Institution Senior Fellow Bruce Riedel was even less charitable. "There is no deal. It's fake news," hewrote in a scathing piece on the Brookings website. "I've spoken to contacts in the defense business and on theHill, and all of them say the same thing: there are a bunch of letters of interest or intent, but not contracts. Manyare offers that the defense industry thinks the Saudis will be interested in someday."It could be years before anyone knows for sure whether the preliminary agreements announced in Saudi Arabiahave become real deals worth hundreds of billions, or whether the announcements were the kind of hyperboleTrump perfected during his time in the business world.please noteThe information contained in this communication isconfidential, may be attorney-client privileged, mayconstitute inside information, and is intended only forthe use of the addressee. It is the property ofJEEUnauthorized use, disclosure or copying of thiscommunication or any part thereof is strictly prohibitedand may be unlawful. If you have received thiscommunication in error, please notify us immediately byreturn e-mail or by e-mail to jeevacation@gmail.com, anddestroy this communication and all copies thereof,including all attachments. copyright -all rights reservedHOUSE OVERSIGHT 026447