Core Viewpoint - Meta collaborates with private equity giant Blue Owl Capital to raise $27 billion through a private bond issuance for data center construction, setting a record for private bond issuance, highlighting the significant capital demand for AI infrastructure [2][5] Group 1: Record Private Bond Issuance - The Hyperion data center project successfully raised $27 billion through private bond issuance, marking the largest single transaction in the private bond market [5] - Pimco emerged as the largest buyer, subscribing to $18 billion of the bonds, while BlackRock subscribed over $3 billion, becoming the second-largest investor [5] - The bonds received an A+ investment-grade rating from S&P Global, primarily due to Meta's support, but the yield of 6.58% is significantly higher than typical bonds of the same rating, indicating investor demand for risk premiums [5] Group 2: BlackRock's ETF Involvement - A portion of BlackRock's bond subscriptions flowed into its ETF products, with an actively managed high-yield ETF purchasing Hyperion bonds valued at $2.1 million, making it the largest single investment in the fund [7] - Additionally, another total return ETF held approximately $1.2 million of the bonds, and a loan ETF held about $651,000 [8] - BlackRock's strategy post-2008 financial crisis focused on ETFs replacing mutual funds as the preferred investment tool, contributing to its growth as the largest asset management company globally [8][9] Group 3: Off-Balance-Sheet Financing Model - Through the joint venture with Blue Owl, Meta structured the bond issuance to keep the financing off its balance sheet, allowing for large-scale data center construction without directly increasing its debt burden [11][12] - This off-balance-sheet arrangement is becoming a new financing choice for tech companies pursuing capital-intensive AI infrastructure projects, meeting substantial funding needs while maintaining financial flexibility [12]