Recently, BlackRock (BLK, Financial) announced that it has completed the acquisition of Global Infrastructure Partners (a private company), marking a strategic expansion in its infrastructure capabilities. With this acquisition, BlackRock positions itself as a global leader in infrastructure investment, boasting an impressive $170 billion investment in assets under management (AUM) across developed and emerging markets.
The newly formed entity will retain the GIP brand within BlackRock's broader infrastructure platform under the leadership of GIP's Chairman and CEO, Bayo Ogunlesi. This leadership will manage a diverse portfolio of over 300 active investments spanning more than 100 countries. This move boosts BlackRock's private markets AUM by approximately 40%, significantly enhancing its revenue prospects with an expected $750 million in run-rate management fees.
Laurence D. Fink, Chairman and CEO of BlackRock, highlighted the transaction's significance: "Infrastructure represents a generational investment opportunity. We are well positioned to capitalize on the long-term structural trends driving growth in this sector and to deliver superior investment opportunities for our clients globally."
Bayo Ogunlesi, GIP's Chairman and CEO, expressed enthusiasm about the merger, emphasizing the combined entity's potential: "We are excited to embark on this new chapter as GIP, a part of BlackRock, he stated. The integration of our intellectual capital, investing prowess, and extensive global footprint will enable us to provide attractive investment opportunities and innovative solutions to our investors and clients."
