NEW YORK, NY – In a landmark move poised to reshape the landscape of infrastructure investment, BlackRock, Inc. (NYSE: BLK) has announced its acquisition of Global Infrastructure Partners (GIP), the world’s leading independent infrastructure manager. This strategic transaction, valued at a total consideration of $3 billion in cash and approximately 12 million shares of BlackRock stock, will establish an unparalleled, multi-asset class infrastructure investment platform with over $150 billion in combined assets under management (AUM). The integration of Global Infrastructure Partners with BlackRock’s existing infrastructure business creates a powerhouse poised to capitalize on the burgeoning global demand for infrastructure development and deliver superior outcomes for clients.
The acquisition of Global Infrastructure Partners by BlackRock arrives at a pivotal moment for infrastructure investment. Experts predict the infrastructure market, currently estimated at $1 trillion, is on track to become one of the most rapidly expanding segments within private markets. Several converging global trends are fueling this acceleration. The increasing need for upgraded digital infrastructure, including fiber broadband, cell towers, and data centers, is paramount in our increasingly connected world. Simultaneously, the reshaping of global supply chains necessitates renewed investment in crucial logistical hubs like airports, railroads, and shipping ports. Perhaps most significantly, the global movement towards decarbonization and the urgent need for energy security are driving unprecedented investment in sustainable infrastructure projects.
Furthermore, substantial government deficits worldwide underscore the critical role of public-private partnerships in mobilizing the vast capital required to fund essential infrastructure projects. In the current economic climate characterized by higher interest rates and capital scarcity, corporations are actively seeking partnership opportunities to optimize their embedded infrastructure assets, enhance returns on invested capital, or generate capital for reinvestment in their core business operations. BlackRock’s extensive network of global corporate relationships, cultivated through its position as a long-term investor in both debt and equity, positions the firm ideally to spearhead critical infrastructure investments. These investments are crucial for improving communities worldwide and generating long-term investment benefits for clients seeking exposure to this vital asset class.
The fusion of Global Infrastructure Partners’ specialized expertise with BlackRock’s comprehensive infrastructure offerings creates a truly differentiated global infrastructure franchise. This combined entity brings together market-leading capabilities in deal origination and asset management. The scale of the combined business, managing over $150 billion, will enable it to offer clients holistic infrastructure solutions across equity, debt, and tailored strategies. By combining GIP’s proprietary origination strengths and operational improvement capabilities with BlackRock’s extensive global network and relationships with corporations and sovereign entities, the new platform is uniquely positioned for diversified, large-scale deal sourcing. This robust platform will significantly enhance deal flow and create compelling co-investment opportunities for BlackRock’s global client base. The synergy between Global Infrastructure Partners and BlackRock is expected to deliver to clients the significant advantages of broader origination capabilities and enhanced business improvement strategies, ultimately aiming for superior investment performance.
Global Infrastructure Partners, established in 2006, has risen to prominence as a world-leading independent infrastructure investor. The firm manages over $100 billion in client assets across infrastructure equity and debt strategies, concentrating on key sectors including energy, transport, water and waste, and digital infrastructure. GIP’s impressive track record is built upon its strengths in proprietary deal origination, hands-on operational improvements within its portfolio companies, and strategic timing of investment exits. The firm has successfully scaled its flagship global equity fund series, with its most recent fully invested flagship fund in 2019 exceeding $22 billion.
BlackRock’s existing infrastructure business, managing over $50 billion in client AUM, encompasses infrastructure equity, debt, and solutions. This business 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 the breadth and depth of BlackRock’s commitment to the infrastructure sector.
The leadership of the combined infrastructure platform will be entrusted to the experienced Global Infrastructure Partners management team. Bayo Ogunlesi, GIP Founding Partner, Chairman and Chief Executive Officer, along with four of GIP’s founding partners, will continue to lead the integrated platform. They will bring their highly skilled investment and operationally focused business improvement teams, renowned for their track record of building and managing high-performing private markets businesses. GIP’s founders and teams have affirmed their long-term commitment to clients, and the integration with BlackRock’s extensive global platform is expected to unlock even greater opportunities for value creation. Furthermore, demonstrating BlackRock’s commitment to GIP’s leadership and vision, Bayo Ogunlesi is expected to be appointed to BlackRock’s Board of Directors at the next regularly scheduled board meeting following the transaction’s closing, pending customary onboarding procedures.
Laurence D. Fink, BlackRock Chairman and CEO, emphasized the strategic importance of infrastructure in the current global economic landscape. “Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts re-shape the global economy. We believe the expansion of both physical and digital infrastructure will continue to accelerate, as governments prioritize 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,” Fink stated.
“I’m delighted for the opportunity to welcome Bayo and the GIP team to BlackRock, and happy to announce our plans to have Bayo join our Board of Directors post-closing,” Fink continued. He further highlighted the complementary strengths of the two firms: “We founded BlackRock 35 years ago based on a unique understanding of investment risk and the factors and forces driving investment returns. GIP’s deep understanding of the factors and forces driving operational efficiency for long-term value creation have 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.”
Bayo Ogunlesi echoed this enthusiasm, stating, “I’m excited about the power of this combination and the prospect of working with Larry and his talented team. We share with BlackRock a culture of collaboration, client focus, investment partnership, and commitment to excellence. 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,” Ogunlesi concluded. “We are convinced that together we can create the world’s premier infrastructure investment firm.”
Global Infrastructure Partners: An Industry Leader
Global Infrastructure Partners stands as the largest independent infrastructure manager globally, measured by assets under management. The firm boasts over $100 billion in AUM across infrastructure equity and credit strategies, supported by a team of approximately 400 professionals. GIP’s extensive portfolio encompasses over 40 companies generating over $75 billion in annual revenue and employing approximately 115,000 individuals worldwide. GIP’s success is rooted in its focused approach on real infrastructure assets within the transport, energy, digital, and water and waste sectors. The firm’s deep industry knowledge is the foundation of its ability to originate proprietary transactions through outright ownership and corporate joint ventures, conduct thorough due diligence, and structure sophisticated investments.
Beyond proprietary origination, operational enhancement is a core pillar of GIP’s investment strategy. A dedicated team focuses on delivering significant operational improvements within portfolio companies, driving value creation. GIP has a proven track record of successful exits across various 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 major renewable energy platforms, such as Clearway, Vena, Atlas, and Eolian.
Transaction Terms and Timeline
Under the terms of the agreement, BlackRock will acquire 100% of Global Infrastructure Partners’ 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 anticipated 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 newly issued debt. The transaction is not expected to materially impact BlackRock’s existing leverage profile.
The acquisition is expected to be modestly accretive to BlackRock’s adjusted earnings per share and operating margin in the first full year following completion. Subject to customary regulatory approvals and other closing conditions, the transaction is currently anticipated to close in the third quarter of 2024.
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 GIP, and Kirkland & Ellis LLP and Debevoise & Plimpton LLP acted as legal counsel.
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 is committed to helping millions build savings that serve them throughout their lives by making investing more accessible and affordable. For more information about BlackRock, please visit www.blackrock.com/corporate.
About Global Infrastructure Partners
Global Infrastructure Partners (GIP) is a premier infrastructure investor specializing in the ownership and operation of some of the world’s largest and most complex assets across the energy, transport, digital infrastructure, and water and waste management sectors. With decarbonization at the core of its investment philosophy, 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. GIP manages over $100 billion in assets, and its portfolio companies generate combined annual revenues of approximately $75 billion and employ over 115,000 people. For further details, please visit www.globalinfra.com.
