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BlackRock, one the biggest asset management companies in the world stated that it is buying Global Infrastructure Partners, a company founded by Nigerian investment banker Adebayo Ogunlesi for USD 12.5bn. The deal makes Blackrock the second-biggest private investor and manager of infrastructure in the world.
Blackrock is to pay USD 3bn in cash and offer Ogunlesi and five other co-founders of Global Infrastructure Partners 12 million shares in Blackrock, thus making them the second biggest shareholders in the global asset management giant. It would also appoint Ogunlesi, GIP Founding Partner, chairman, and CEO, to the board at the next scheduled board meeting after the close of the deal.
The combination of GIP with BlackRock’s highly complementary infrastructure offerings creates a comprehensive global infrastructure franchise with differentiated origination and asset management capabilities. BlackRock said GIP’s acquisition aligns with the vision of Laurence Fink, its chairman and Chief Executive Officer, to transform the firm into a key player in the growing market for private and alternative assets. Over USD 150 billion combined business will seek to deliver clients market-leading, holistic infrastructure expertise across equity, debt, and solutions at a substantial scale.
Rope in 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 its clients. We believe bringing GIP and BlackRock together will deliver to clients the benefits of broader origination and business improvement capabilities. Global Infrastructure Partners has USD 106bn invested in infrastructure, while Blackrock manages USD 10tn worth of alternative assets.
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Ogunlesi, an alumnus of King’s College Lagos and Harvard University, was chief client officer and vice chairman at Credit Suisse First Boston before leaving to start Global Infrastructure Partners. His profile grew in Nigeria after Global Infrastructure Partners bought Gatwick Airport. The main assets of GIP include Sydney, the Port of Melbourne, the Suez Water group, extensive green energy holdings, and a stake in a big shale oil pipeline.
