American Multinational, BlackRock Acquires Ogunlesi's Global Infrastructure Partners for $12.5bn

Deal to make GIP one of world's biggest infrastructure investors Company appoints Ogunlesi into board

American multinational, BlackRock Inc. has acquired Global Infrastructure Partners (GIP), a leading independent infrastructure fund manager owned by Nigeria's Adebayo Ogunlesi, for about $12.5 billion.

The transaction has created a world leading infrastructure private market investment platform.

According to a joint statement issued yesterday, BlackRock will pay $3 billion in cash and about 12 million shares, worth about $9.5 billion at Thursday’s close, and the deal is expected to close in the third quarter of 2024.

The deal has launched BlackRock, the world’s biggest money manager, into the top ranks of investors that make long-term bets on energy, transportation and digital infrastructure. GIP manages $100 billion.

The deal is also expected to make GIP one of the world's biggest infrastructure investors.

However, subject to completion of customary onboarding procedures, BlackRock has agreed to appoint Ogunlesi, who is currently the Founding Chairman and Chief Executive Officer of GIP into its board at the next regularly scheduled board meeting following the closing of the transaction.

Also, Ogunlesi, a former Credit Suisse executive and one of the founding partners at GIP's management team, has also been appointed to lead the combined, highly complementary infrastructure platform.

The GIP is the world’s largest independent infrastructure manager with over $100 billion in AUM and a strong reputation for driving operational improvements in its portfolio companies and proprietary origination.

The transaction, the statement explained, created a market-leading, multi-asset class infrastructure investing platform with combined client AUM of over $150 billion across equity, debt and solutions and strengthened deal flow and co-investment opportunities.

The statement added that the transaction was structured for leadership continuity and alignment with BlackRock’s stockholders, with a substantial majority of total consideration to be paid in

BlackRock stock.

A $1 trillion market today, infrastructure had been forecast to be one of the fastest growing segments of private markets in the years ahead. A number of long-term structural trends support an acceleration in infrastructure investment.

These include increasing global demand for upgraded digital infrastructure like fiber broadband, cell towers and data centers; renewed investment in logistical hubs such as airports, railroads and shipping ports as supply chains are rewired; and a movement toward decarbonisation and energy security in many parts of the world.

Further, large government deficits mean that the mobilisation of capital through public-private partnerships will be critical for funding important infrastructure.

Finally, as capital has become more scarce in a higher interest rate environment, companies are exploring partnership opportunities for their embedded infrastructure assets to improve their returns on invested capital or to raise capital to reinvest in their core businesses.

BlackRock has a broad network of global corporate relationships as a long-term investor in both their debt and equity. These relationships will help them lead 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 highly complementary infrastructure offerings create a comprehensive global infrastructure franchise with differentiated origination and asset management capabilities.

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

The joint statement stated that 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 clients.

"We believe bringing GIP and BlackRock together will deliver to clients the benefits of broader origination and business improvement capabilities," the statement said.

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.