BlackRock to buy infrastructure firm Global Infrastructure Partners for $3bn

BlackRock is set to acquire independent infrastructure fund manager Global Infrastructure Partners (GIP) for a total value of $3bn in cash and approximately 12 million shares of BlackRock’s common stock.

Infrastructure is forecast to be one of the fastest-growing segments of private markets in the years ahead. BlackRock has a broad network of global corporate relationships as a long-term investor in both their debt and equity. These relationships will help see critical investments in infrastructure to improve outcomes for communities around the globe and generate long-term investment benefits for clients.

The combination of GIP with BlackRock’s complementary infrastructure offerings creates a comprehensive global infrastructure franchise with differentiated origination and asset management capabilities.

The over $150bn combined business will seek to deliver clients market-leading, holistic infrastructure expertise across equity, debt, and solutions at a substantial scale.

Founded in 2006, world-leading independent infrastructure investor GIP manages over $100bn in client assets across infrastructure equity and debt, with a focus on energy, transport, water and waste, and digital sectors.

BlackRock’s over $50bn infrastructure client assets under management (AUM) comprises infrastructure equity, debt and solutions, and has grown both organically and inorganically since inception in 2011.

Subject to the completion of customary onboarding procedures, BlackRock has also agreed to appoint Bayo Ogunlesi, GIP founding partner, chairman and CEO, to the board at the next regularly scheduled board meeting following the closing of the transaction.

BlackRock-GIP to deliver infrastructure platform with top investment opportunities

Laurence D Fink, BlackRock chairman and CEO.“Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts reshape the global economy. We believe the expansion of both physical and digital infrastructure will continue to accelerate, as governments prioritise self-sufficiency and security through increased domestic industrial capacity, energy independence, and onshoring or near-shoring of critical sectors. Policymakers are only just beginning to implement once-in-a-generation financial incentives for new infrastructure technologies and projects.

“GIP’s deep understanding of the factors and forces driving operational efficiency for long-term value creation has made them a global leader in infrastructure investing. Bringing these two firms together will create the infrastructure platform to deliver best-in-class investment opportunities for clients globally, and we couldn’t be more excited about the opportunities ahead of us.”

“Investors have adopted private infrastructure investing for its ability to provide stable cashflows, less correlated returns, and a hedge against inflation. Global corporates have turned to private infrastructure as a fast innovator and a more commercially agile owner of infrastructure assets that aren’t core to their commercial businesses. This platform is set to be the preeminent, one-stop infrastructure solutions provider for global corporates and the public sector, mobilizing long-term private capital through long-standing firm relationships,” said Ogunlesi.

“We are convinced that together we can create the world’s premier infrastructure investment firm,” he added.

BlackRock is currently rated AA- with S&P and Aa3 with Moody’s.

The transaction is expected to close Q3 2024 subject to customary regulatory approvals and other closing conditions.