BlackRock agrees to acquire GIP, founded by Nigerian Adebayo Ogunlesi

BlackRock and Global Infrastructure Partners (GIP) have entered into an agreement for BlackRock to acquire GIP for a total consideration of $3bn.

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BlackRock and Global Infrastructure Partners (GIP), an independent infrastructure fund manager, have entered into an agreement for BlackRock to acquire GIP for a total consideration of $3 billion of cash and approximately 12 million shares of BlackRock common stock.

GIP's chairman and managing partner is Nigerian-born Adebayo Ogunlesi. He founded the firm in 2006.

The combination of GIP with BlackRock’s infrastructure offerings creates a global infrastructure franchise with differentiated origination and asset management capabilities. The GIP management team, led by Ogunlesi and four of its founding partners, will lead the combined infrastructure platform. BlackRock has also agreed to appoint Ogunlesi to its board.

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.

“Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts re-shape the global economy. We believe the expansion of both physical and digital infrastructure will continue to accelerate, as governments prioritise self-sufficiency and security through increased domestic industrial capacity, energy independence, and onshoring or near-shoring of critical sectors. Policymakers are only just beginning to implement once-in-a-generation financial incentives for new infrastructure technologies and projects,” said Laurence D. Fink, BlackRock chairman and CEO.

“I’m excited about the power of this combination and the prospect of working with Larry and his talented team. We share with BlackRock a culture of collaboration, client focus, investment partnership, and commitment to excellence. Investors have adopted private infrastructure investing for its ability to provide stable cashflows, less correlated returns, and a hedge against inflation. Global corporates have turned to private infrastructure as a fast innovator and a more commercially agile owner of infrastructure assets that aren't core to their commercial businesses. This platform is set to be the preeminent, one-stop infrastructure solutions provider for global corporates and the public sector, mobilising long-term private capital through long-standing firm relationships,” said Ogunlesi.

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