Home » BlackRock To Acquire Global Infrastructure Partners for $12.5 Billion

BlackRock To Acquire Global Infrastructure Partners for $12.5 Billion

Global Infrastructure Partners (GIP), the world’s largest independent infrastructure manager with over $100 billion in AUM, and BlackRock, Inc. have jointly announced that the companies have entered into an agreement for BlackRock to acquire Global Infrastructure Partners for total consideration of $3 billion of cash and approximately 12 million shares of BlackRock common stock.

This transaction creates a world leading infrastructure private markets investment platform with over $150 billion of equity, credit and solutions assets under management that will be overseen by the Global Infrastructure Partners (GIP) leadership team, which will remain in place.

Post acquiring GIP, which has about $106bn in assets under management, BlackRock would be the world’s second- largest infrastructure manager after Macquarie, an Australia-based global financial services group currently the world’s biggest infrastructure asset manager and a top 50 global asset manager, managing more than ~ °735.5 billion of assets on behalf of investors across multiple asset classes.

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.

The announcement made through a press release, said that the combination of GIP with ß global infrastructure franchise with differentiated origination and asset management capabilities. The over $150 billion combined business will seek to deliver clients market-leading, holistic infrastructure expertise across equity, debt and solutions at substantial scale. Marrying the proprietary origination and business improvement capabilities of GIP and BlackRock’s global corporate and sovereign relationships provides a platform for diversified, large-scale sourcing to support deal flow and co-investment opportunities for _अक्की . We believe bringing GIP and BlackRock together will deliver to clients the benefits of broader origination and business improvement capabilities.

Founded in 2006, world leading independent infrastructure investor GIP manages over $100 billion in client assets across infrastructure equity and debt, with a focus on energy, transport, water and waste, and digital sectors. GIP’s performance has been driven by proprietary origination, operational improvements, and timely exits. They have successfully scaled their global equity flagship series, with the most recent fully invested flagship fund in 2019 surpassing $22 billion.

BlackRock’s over $50 billion of infrastructure client AUM is comprised of infrastructure equity, debt and solutions, and has grown both organically and inorganically since inception in 2011. Top investment talent at BlackRock lead franchises that include Diversified Infrastructure, Infra Debt, Infra Solutions, Climate Infrastructure and Decarbonization Partners.