In a stunning move that shakes up the world of infrastructure investing, BlackRock has agreed to buy Global Infrastructure Partners (GIP) for a whopping $12.5 billion in cash and stock. The deal, announced on Friday, will create a powerhouse in the fast-growing market for private and alternative assets, with over $150 billion in combined infrastructure assets under management.
GIP is the world’s largest independent infrastructure fund manager, with a portfolio of 40 companies across energy, transport and water sectors, generating more than $75 billion in annual revenues. Some of its flagship assets include Gatwick airport, Hornsea 1 offshore wind farm, and Suez wastewater group.
The acquisition will bring GIP’s management team, led by its charismatic founder and CEO Adebayo Ogunlesi, into BlackRock’s fold. Ogunlesi, a Nigerian-born former Credit Suisse banker and US supreme court clerk, will join BlackRock’s board and global executive committee. He will also lead the combined infrastructure platform, along with four of his founding partners.
“Bayo and his team have built an exceptional business with a proven track record of delivering strong returns for their investors,” said Laurence D. Fink, BlackRock’s chairman and CEO. “We are thrilled to welcome them to BlackRock and look forward to working together to create the best infrastructure platform in the world.”
Fink said the deal was a strategic move to tap into the huge potential of infrastructure as a long-term investment opportunity. He cited several structural shifts that are driving the demand for upgraded physical and digital infrastructure, such as increased domestic industrial capacity, energy independence, and onshoring or near-shoring of critical sectors.
“Infrastructure is one of the most exciting and impactful areas of investing today, as it shapes the future of our economy, society and environment,” Fink said. “By combining our strengths and expertise, we will be able to offer our clients unparalleled access to the best infrastructure opportunities around the world.”
The deal, which is subject to regulatory approvals and customary closing conditions, is expected to close in the second half of 2024. It is the biggest deal in more than a decade for BlackRock, which was founded 35 years ago based on a unique understanding of investment risk and the factors and forces driving investment returns.
BlackRock, which manages over $10 trillion in assets, is the world’s largest asset manager and a leader in sustainable investing. It offers a range of products and services across equity, fixed income, cash management, alternative investments, and multi-asset strategies.
