BlackRock this week has successfully completed its acquisition of Global Infrastructure Partners (GIP), with the combined infrastructure platform now being branded GIP, a part of BlackRock.
In January, the companies jointly announced they had entered into an agreement for BlackRock to acquire GIP for total consideration of US$3 billion of cash and approximately 12 million shares of BlackRock common stock.
“The combination creates an industry leader in infrastructure across equity, debt and solutions – providing a diverse range of infrastructure sector expertise and exposure across developed and emerging markets,” BlackRock said on Tuesday.
With approximately $170 billion in assets under management (AUM), the platform will bolster a 600-person strong team that manages a portfolio of more than 300 active investments with operations in over 100 countries.
As part of the deal, BlackRock said it is consolidating over $100 billion of private markets AUM, some $750 million of run rate management fees, boosting private markets AUM by approximately 40 per cent and expanding run rate revenues.
“Infrastructure represents a generational investment opportunity,” BlackRock chairman and CEO Laurence D Fink said.
“Through the combination of BlackRock and GIP, we are well positioned to capitalise on the long-term structural trends that will continue to drive the growth of infrastructure and deliver superior investment opportunities for clients globally.
“We are thrilled to welcome Bayo and the talented GIP team to BlackRock and look forward to providing our clients this combined depth and bench of infrastructure investment expertise.”
Moreover, GIP will continue to be led by Bayo Ogunlesi and the office of the chairman.
Commenting on the deal, Ogunlesi said: “We are excited to embark on this new chapter as GIP, a part of BlackRock, with the goal of creating the premier global infrastructure investing firm.
“The combination of our institutional intellectual capital, investing and business improvement capabilities, global footprint, corporate and government relationships will allow us to deliver attractive investments for our investors and innovative solutions for our customers.”
BlackRock also confirmed its intention to appoint Ogunlesi to its board of directors at the next regularly scheduled board meeting.
