BlackRock and Global Infrastructure Partners (GIP) have announced the “successful completion” of BlackRock’s acquisition of GIP, following its announcement in January of this year. According to the asset manager, “this combination creates a leader in the infrastructure industry, covering capital, debt, and solutions, while providing a diverse range of expertise and exposure in the infrastructure sector across both developed and emerging markets.”
The firm explained that the combined infrastructure platform will carry the Global Infrastructure Partners (GIP) brand, as part of BlackRock. GIP will continue to be led by Bayo Ogunlesi and the Office of the Chairman. Additionally, with approximately $170 billion in assets under management, the platform will have a global team of 600 people managing a diversified portfolio of over 300 active investments, operating in more than 100 countries.
With this combination, BlackRock consolidates over $100 billion in assets under management in private markets and approximately $750 million in annual management fees, increasing its private market assets by about 40% and expanding its recurring revenue.
“Infrastructure represents a generational investment opportunity. With the combination of BlackRock and GIP, we are well-positioned to capitalize on long-term structural trends that will continue to drive infrastructure growth and offer superior investment opportunities for clients worldwide. We are thrilled to welcome Bayo and the talented GIP team to BlackRock, and we look forward to delivering this combined infrastructure investment expertise to our clients,” highlighted Larry Fink, Chairman and CEO of BlackRock.
Meanwhile, Bayo Ogunlesi, Chairman and CEO of Global Infrastructure Partners, added, “We are excited to begin this new chapter as Global Infrastructure Partners (GIP), part of BlackRock, with the goal of creating the world’s leading infrastructure investment firm. The combination of our institutional intellectual capital, investment and business enhancement capabilities, global presence, and corporate and governmental relationships will allow us to offer attractive investments for our investors and innovative solutions for our clients.” For now, BlackRock plans to appoint Bayo Ogunlesi to its Board of Directors at its next meeting.