The Public Investment Fund built up a less-than 5% stake in the electric carmaker in recent months, according to a person familiar with the matter, just as Elon Musk considers taking the company private. PIF’s move comes as it seeks to turn into a US$2 trillion powerhouse and help diversify Saudi Arabia’s oil-dependent economy. Here’s a selection of PIF’s recent investments and holdings:
Uber Technologies Inc
PIF invested US$3.5 billion in US ride-share company Uber Technologies Inc in June 2016. PIF Managing Director Yasir Al-Rumayyan took a board seat at the San Francisco-based company after the deal, which valued Uber at US$62.5 billion. At the time it was the biggest infusion of cash into Uber from a single investor.
Virgin Group
The fund announced plans in October 2017 to invest about US$1 billion in Virgin Group’s space companies, Virgin Galactic, The Spaceship Co and Virgin Orbit. PIF also holds an option to invest an additional US$480 million in Virgin’s space services. Saudi Arabia plans to support the ventures’ plans for human spaceflight and launching satellites into orbit and may cooperate with Virgin to create a space-centric entertainment industry in the country.
Blackstone funds
PIF agreed to commit US$20 billion in May 2017 to an infrastructure investment fund with Blackstone Group LP, the world’s biggest private-equity manager. Blackstone plans to raise the same amount from other investors and with leverage, the New York-based asset manager expects to have more than US$100 billion in purchasing power for infrastructure projects, primarily in the US.
SoftBank
Saudi Arabia and SoftBank Group Corp announced the first close of an almost US$100 billion technology fund, the largest ever, in May 2017 secured from backers led by PIF and the Japanese company. PIF didn’t disclose the size of its investment, but Crown Prince Mohammed bin Salman said he might invest up to US$45 billion in the fund over five years. Apple Inc, Qualcomm Inc, Foxconn Technology Group and Sharp Corp also put in capital.
Separately, PIF also owns stakes in some of Saudi Arabia’s biggest companies on behalf of the government:
Saudi Basic Industries Corp
Holds 70% of Saudi Basic Industries Corp, the world’s second-biggest chemicals maker by market value. It is now seeking to sell the 70% stake to oil company Saudi Aramco.
Saudi Telecom Co
Owns 70% of Saudi Telecom Co, the country’s biggest phone services provider. The company competes in the local market with a unit of UAE’s Etisalat and Kuwait’s Zain.
National Commercial Bank
Holds 44.3% of National Commercial Bank, the country’s biggest lender.
Saudi Arabian Mining Co
Holds 65.4% of Saudi Arabian Mining Co, or Maaden, which has interests in low-grade bauxite, phosphate, aluminium and industrial minerals.
Samba Financial Group
Holds a 22.9% stake in Samba Financial Group, the country’s third-biggest bank. Citigroup Inc sold its stake in Samba in 2004.