BlackRock Inc., the world’s largest asset manager, has acquired Global Infrastructure Partners (GIP), led by Adebayo Ogunlesi, in a substantial deal valued at $12.5 billion. The transaction, set to be completed in the third quarter of 2024, involves a $3 billion cash payment and approximately 12 million shares, totaling around $9.5 billion based on closing prices as of January 11.
Adebayo Ogunlesi, Chairman and CEO of GIP, is recognized as a leading figure in global infrastructure fund management. GIP oversees a portfolio worth approximately $100 billion, with its equity holdings collectively generating an annual revenue of $80 billion. Notable assets in GIP’s portfolio include Gatwick Airport, London City Airport, Port of Brisbane, Port of Melbourne, Sydney Airport, and the Ruby Pipeline in the United States.
BlackRock’s acquisition of GIP marks its most significant deal since acquiring Barclays Global Investors in 2009. The move is part of BlackRock’s strategic efforts to solidify its position in the rapidly expanding private and alternative assets market.
In a memo to BlackRock employees, Larry Fink and Rob Kapito, CEO and President of BlackRock respectively, highlighted the increasing demand for new infrastructure, emphasizing the crucial role of private capital in addressing this need.
The memo stated, “The unprecedented need for new infrastructure – for digital infrastructure, for upgraded logistics hubs, and for decarbonization and energy security – coupled with record high government deficits means that private capital will be needed like never before.”
BlackRock, boasting approximately $10 trillion in Assets Under Management (AUM) as of FY 2023, has witnessed a 16% increase from the $8.59 trillion reported in FY 2022. While equities and fixed-income assets constitute about 70% of BlackRock’s assets, alternative investments contribute about 10% of the company’s revenue.
The amalgamation of GIP’s extensive portfolio with BlackRock’s $50 billion infrastructure portfolio positions the company as a major player in the infrastructure asset market.
Adebayo Ogunlesi, an Oxford University alumnus with a Bachelor’s Degree in Politics, Philosophy, and Economics, as well as an MBA from Harvard Business School, founded GIP in 2006 with support from Credit Suisse and General Electric Co.
Prior to establishing GIP, he spent 23 years at Credit Suisse, attaining the position of Executive Vice Chairman and Chief Client Officer of the Investment Banking Division. Presently a member of the Board of Directors at Goldman Sachs, Ogunlesi is expected to join BlackRock’s board and global executive committee following the completion of the GIP sale.
