By Adedapo Adesanya
BlackRock, the world’s biggest asset manager, has announced the acquisition of Global Infrastructure Partners (GIP), chaired by Nigerian lawyer and investment banker, Mr Adebayo Ogunlesi, for about $12.5 billion in cash and stock.
BlackRock will buy GIP for $3 billion in cash and roughly 12 million Blackrock shares worth over $9 billion to create an investing platform with more than $150 billion in combined assets.
The acquisition is part of the firm’s increased focus on infrastructure.
The CEO of BlackRock, Mr Larry Fink said is “one of the most exciting long-term investment opportunities.”
As part of the deal, GIP’s management team will lead a combined infrastructure private markets investment platform at BlackRock.
The deal is expected to close in the third quarter of this year.
BlackRock also announced it will embed its exchange-traded funds (ETF) and Index businesses across the entire firm with the creation of a new strategic Global Product Solutions business.
The firm posted an 8 per cent rise in its quarterly profit helped by a rebound in markets that boosted the company’s assets under management.
“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,” said Mr Ogunlesi, GIP CEO.
The firm also creating a new International Business structure that will unify its leadership across Europe, the Middle East, India and Asia Pacific.
Founded in 2006, 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.
Dipo Olowookere