NEW YORK, January 12, 2024 – In a landmark move set to reshape the landscape of infrastructure investment, BlackRock, Inc. (NYSE: BLK), the world’s largest asset manager, has announced its acquisition of Global Infrastructure Partners Llc (GIP), the foremost independent infrastructure fund manager globally. This strategic transaction, valued at a total consideration of $3 billion in cash and approximately 12 million shares of BlackRock common stock, marks a significant milestone for both firms and the broader infrastructure sector.
This acquisition positions the combined entity as a market-leading, multi-asset class infrastructure investment platform, boasting over $150 billion in combined client assets under management (AUM) across equity, debt, and innovative solutions. The integration of Global Infrastructure Partners LLC into BlackRock is poised to strengthen deal flow, enhance co-investment opportunities, and provide clients with unparalleled expertise in navigating the burgeoning infrastructure market.
Infrastructure is currently a $1 trillion market and is projected to experience rapid growth in the coming years, becoming one of the most dynamic segments within private markets. Several powerful, long-term structural trends are fueling this surge in infrastructure investment. These include the escalating global demand for advanced digital infrastructure such as fiber broadband, cell towers, and data centers to support an increasingly connected world. Furthermore, the revitalization of logistical hubs—airports, railroads, and shipping ports—is critical as global supply chains undergo significant restructuring. Perhaps most significantly, the global movement towards decarbonization and enhanced energy security is driving unprecedented investment in renewable energy and sustainable infrastructure projects.
Adding to this momentum, substantial government deficits worldwide necessitate the mobilization of private capital through public-private partnerships to finance essential infrastructure projects. In an environment characterized by higher interest rates and tighter capital availability, corporations are increasingly seeking strategic partnerships for their embedded infrastructure assets. This allows them to optimize their returns on invested capital or to generate capital for reinvestment in their core business operations.
BlackRock’s extensive network of global corporate relationships, cultivated through its role as a long-term investor in both debt and equity markets, will be instrumental in driving crucial infrastructure investments. These investments are aimed at fostering positive outcomes for communities worldwide while simultaneously generating long-term investment returns for clients.
The synergy between Global Infrastructure Partners LLC and BlackRock’s existing infrastructure platform creates a comprehensive global infrastructure franchise. This unified platform will offer differentiated origination and asset management capabilities, providing clients with holistic infrastructure expertise at an unprecedented scale. By combining GIP’s proprietary origination skills and operational improvement expertise with BlackRock’s expansive global corporate and sovereign relationships, the platform is uniquely positioned for diversified, large-scale sourcing. This robust sourcing capability will support a strong deal flow and enhanced co-investment opportunities for BlackRock’s diverse clientele. The integration is expected to deliver significant benefits to clients through broader origination capabilities and enhanced operational improvements across their infrastructure portfolios.
Global Infrastructure Partners LLC, established in 2006, has risen to prominence as a world-leading independent infrastructure investor. Managing over $100 billion in client assets, GIP’s investment focus spans infrastructure equity and debt, targeting key sectors such as energy, transport, water and waste management, and digital infrastructure. GIP’s impressive performance is underpinned by its proprietary deal origination, a strong emphasis on operational improvements within its portfolio companies, and strategic, timely exits from investments. The firm has successfully scaled its global equity flagship series, with its most recent fully invested flagship fund in 2019 exceeding $22 billion.
BlackRock’s infrastructure client AUM, currently exceeding $50 billion, encompasses infrastructure equity, debt, and solutions. This robust portfolio has experienced substantial growth both organically and through strategic acquisitions since its inception in 2011. BlackRock’s infrastructure investment franchises are led by top industry talent and include Diversified Infrastructure, Infra Debt, Infra Solutions, Climate Infrastructure, and Decarbonization Partners, demonstrating a broad and deep commitment to the sector.
The leadership of the combined infrastructure platform will be entrusted to the Global Infrastructure Partners LLC management team. This team, spearheaded by Bayo Ogunlesi and four of GIP’s founding partners, brings exceptional investment acumen and operationally focused business improvement expertise. Their proven track record in building and managing high-performing private markets businesses will be invaluable. GIP’s founders and teams remain deeply committed to their clients, and the integration with BlackRock’s extensive global platform is anticipated to unlock even greater opportunities for value creation and client service. Upon the successful completion of standard onboarding procedures, BlackRock has committed to appointing Bayo Ogunlesi, Founding Partner, Chairman, and Chief Executive Officer of GIP, to BlackRock’s Board of Directors at the next scheduled board meeting following the transaction’s closing.
“Infrastructure stands out as one of the most compelling long-term investment opportunities, driven by fundamental structural shifts reshaping the global economy. We anticipate continued acceleration in the expansion of both physical and digital infrastructure as governments prioritize self-sufficiency and security through increased domestic industrial capacity, energy independence, and the onshoring or near-shoring of critical sectors. Policymakers are in the early stages of deploying unprecedented financial incentives to foster new infrastructure technologies and projects,” stated Laurence D. Fink, BlackRock Chairman and CEO.
“I am thrilled to welcome Bayo and the entire GIP team to BlackRock and to announce our plans to have Bayo join our Board of Directors post-closing. BlackRock was founded 35 years ago on a unique understanding of investment risk and the key factors driving investment returns. GIP’s profound expertise in the factors that enhance operational efficiency for long-term value creation has established them as a global leader in infrastructure investing. Bringing these two firms together will forge the preeminent infrastructure platform capable of delivering best-in-class investment opportunities for clients worldwide, and we are incredibly enthusiastic about the prospects ahead,” Fink added.
Bayo Ogunlesi, GIP Founding Partner, Chairman, and CEO, commented, “I am excited by the transformative potential of this combination and the opportunity to collaborate with Larry and his exceptional team. We share with BlackRock a deeply ingrained culture of collaboration, client-centricity, investment partnership, and an unwavering commitment to excellence. Investors are increasingly allocating to private infrastructure for its capacity to deliver stable cash flows, less correlated returns, and a robust hedge against inflation. Global corporations are leveraging private infrastructure expertise as a catalyst for innovation and a more commercially agile approach to managing infrastructure assets that are not central to their core operations. This combined platform is poised to become the preeminent, one-stop infrastructure solutions provider for global corporations and the public sector, effectively mobilizing long-term private capital through established, enduring firm relationships. We are confident that together, we will establish the world’s leading infrastructure investment firm.”
Global Infrastructure Partners LLC: Company Profile
Global Infrastructure Partners LLC (GIP) holds the distinction of being the largest independent infrastructure manager globally, with AUM exceeding $100 billion. This vast portfolio is managed across infrastructure equity and credit strategies, supported by a team of approximately 400 professionals. GIP’s portfolio comprises over 40 companies generating combined annual revenues exceeding $75 billion and employing approximately 115,000 people worldwide. GIP’s success is rooted in its strategic focus on real infrastructure assets within the transport, energy, digital, and water and waste sectors. This deep sector knowledge enables GIP to originate proprietary transactions through direct ownership and corporate joint ventures, conduct thorough and extensive due diligence, and structure investments effectively.
Beyond proprietary origination, operational enhancement is a cornerstone of GIP’s infrastructure investment approach. A dedicated operational team is focused on delivering significant operational improvements across its portfolio companies. GIP has a proven track record of successful exits across diverse channels. GIP’s notable investments include Gatwick, Edinburgh, and Sydney Airports, CyrusOne (data centers), Suez (water and waste management), Pacific National and Italo (rail), Peel Ports and Port of Melbourne, and several leading renewables platforms, including Clearway, Vena, Atlas, and Eolian.
Transaction Terms
Under the terms of the agreement, BlackRock will acquire 100% of Global Infrastructure Partners LLC’s business and assets for a total consideration of $3 billion in cash and approximately 12 million shares of BlackRock common stock.
Approximately 30% of the total consideration, entirely in stock, will be deferred and is expected to be issued in approximately five years, contingent upon the fulfillment of certain post-closing conditions.
BlackRock intends to finance the cash portion of the consideration through $3 billion of new debt. BlackRock currently holds a credit rating of AA- from S&P and Aa3 from Moody’s, and this transaction is not anticipated to materially alter its leverage profile. It is important to note that securities ratings are not recommendations to buy, sell, or hold securities and are subject to revision or withdrawal at any time.
The transaction is projected to be modestly accretive to BlackRock’s as-adjusted earnings per share and operating margin in the first full year following the closing.
The acquisition is expected to be finalized in the third quarter of 2024, pending customary regulatory approvals and other standard closing conditions.
Perella Weinberg Partners acted as the lead financial advisor to BlackRock, with Skadden, Arps, Slate, Meagher & Flom and Fried, Frank, Harris, Shriver & Jacobson LLP serving as legal counsel. Evercore served as the lead financial advisor to Global Infrastructure Partners LLC, while Kirkland & Ellis LLP and Debevoise & Plimpton LLP acted as its legal counsel.
Investor Conference Call Information
Executives from BlackRock and Global Infrastructure Partners LLC hosted a teleconference call for investors and analysts on Friday, January 12, 2024, at 7:30 a.m. Eastern Time to discuss the transaction, alongside BlackRock’s financial results for the quarter and fiscal year ending December 31, 2023. A replay of the webcast is available on the investor relations section of www.blackrock.com.
About BlackRock
BlackRock’s mission is to empower more and more people to achieve financial well-being. As a fiduciary to investors and a leading provider of financial technology, BlackRock facilitates easier and more affordable investing, helping millions build savings that serve them throughout their lives. For further details on BlackRock, please visit www.blackrock.com/corporate.
About Global Infrastructure Partners LLC (GIP)
Global Infrastructure Partners LLC (GIP) is a premier infrastructure investor specializing in the investment, ownership, and operation of some of the world’s largest and most complex infrastructure assets. GIP’s investments span the energy, transport, digital infrastructure, and water and waste management sectors. With decarbonization at the core of its investment strategy, GIP is strategically positioned to support the global energy transition. Headquartered in New York, GIP maintains a global presence with offices in Brisbane, Dallas, Delhi, Hong Kong, London, Melbourne, Mumbai, Singapore, Stamford, and Sydney.
Global Infrastructure Partners LLC manages over $100 billion in assets. Its portfolio companies generate approximately $75 billion in annual revenues and employ over 115,000 individuals. GIP’s approach, centered on real infrastructure assets, proprietary origination, and comprehensive operational expertise, enables it to responsibly manage investor capital and generate positive economic impact for communities. For additional information, please visit www.globalinfra.com.
