BlackRock, the world’s largest asset management firm, has announced that it will buy Global Infrastructure Partners, a company founded by Nigerian investment banker Adebayo Ogunlesi, for $12.5 billion.
According to a statement made on Friday, Blackrock will pay $3 billion in cash and issue 12 million shares of Blackrock to Ogunlesi and five other Global Infrastructure Partners co-founders, making them the global asset management giant’s second largest stockholders.
BlackRock said it would also add Ogunlesi, GIP Founding Partner, chairman, and CEO, to the board at the next scheduled meeting following the transaction’s closing.
“The combination of GIP with BlackRock’s highly complementary infrastructure offerings creates a comprehensive global infrastructure franchise with differentiated origination and asset management capabilities,” the statement said.
BlackRock said GIP’s acquisition is consistent with its chairman and CEO, Laurence Fink, aim of transforming the business into a leading player in the developing market for private and alternative assets.
It added, “The over $150 billion combined business will seek to deliver clients market-leading, holistic infrastructure expertise across equity, debt and solutions at substantial scale.
“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.”
Commenting on the acquisition, Fink said the deal is “one of the most exciting long-term investment opportunities.”
Global Infrastructure Partners has invested $106 billion in infrastructure, whereas BlackRock oversees $10 trillion in alternative assets.
Ogunlesi, a graduate of King’s College Lagos and Harvard University, was chief client officer and vice chairman of Credit Suisse First Boston before founding Global Infrastructure Partners.
His profile in Nigeria rose after Global Infrastructure Partners acquired Gatwick Airport. The principal assets of GIP, of which Ogunlesi is chairman, are Sydney, the Port of Melbourne, the Suez Water company, vast green energy holdings, and a stake in a large shale oil pipeline.
Traditional money managers, such as BlackRock, consider infrastructure investment to be a “alternative asset” class.
Blackrock now ranks as the world’s second-largest private investor and infrastructure management following this transaction.
Fink described the transaction as “one of the most exciting long-term investment opportunities.”
Global Infrastructure Partners has invested $106 billion in infrastructure, whereas BlackRock oversees $10 trillion in alternative assets.
Ogunlesi, a graduate of King’s College Lagos and Harvard University, was chief client officer and vice chairman of Credit Suisse First Boston before founding Global Infrastructure Partners.
His profile in Nigeria rose after Global Infrastructure Partners acquired Gatwick Airport. The principal assets of GIP, of which Ogunlesi is chairman, are Sydney, the Port of Melbourne, the Suez Water company, vast green energy holdings, and a stake in a large shale oil pipeline.
Traditional money managers, such as BlackRock, consider infrastructure investment to be a “alternative asset” class.
Blackrock now ranks as the world’s second-largest private investor and infrastructure management following this transaction.
