BlackRock, the world's largest asset manager, has agreed toacquisition of Global Infrastructure Partners (Gip), one of the main independent managers of infrastructure funds.
The agreement provides for a total payment of $3 billion in cash it's about 12 million ordinary shares of BlackRock, valued overall at 9,5 billion dollars (based on the stock closing yesterday on Wall Street at $792 per share).
The acquisition is part of the growing caution of the New York investment company for infrastructure since they represent "one of the most interesting long-term investment opportunities" explains the managing director and CEO Larry Fink.
What is Global Infrastructure Partners
Gip, founded in 2006, is an important global independent investor in the field of infrastructure. It manages over 100 billion dollars in client assets, focusing on infrastructure equity and debt. Key sectors of interest include energy, transport, water, waste and digital.
In contrast, BlackRock's assets under management for clients in the infrastructure sector exceed $50 billion, including equity, debt and infrastructure solutions. This portfolio has seen both organic and inorganic growth since its launch in 2011.
A complete global infrastructure franchise is born
Combining Gip with BlackRock's infrastructure offerings creates a complete global infrastructure franchise with differentiated capabilities in the creation and management of resources. The new entity, with a combined assets of over 150 billion of dollars, aims to offer clients comprehensive infrastructure expertise and market leadership in the areas of equity, debt and large-scale solutions.
"The infrastructure represent one of the more attractive long-term investment opportunities, as a series of structural changes reshape the global economy – he commented Laurence Fink, president and CEO of BlackRock – We believe the expansion of physical and digital infrastructure will continue to accelerate, as governments prioritize self-sufficiency and security through increased domestic industrial capacity, energy independence, and onshoring or quasi-shoring of critical sectors” .
