Raw: [
Investment giant BlackRock announced today the acquisition of infrastructure investor Global Infrastructure Partners (GIP) in […]]
BlackRock Acquires Infrastructure Giant GIP for $12.5 Billion – ESG Today
ESG Investing, sustainable finance & business sustainability news
ESG investing news, analysis, research and information
Top Stories ESG News
Companies
Government
Investors
Regulators
Sustainable Finance
ESG Solutions ESG Tools, Services
Companies Companies
Investors Investors
ESG Disclosure ESG Reporting
Analysis
Regulators
Reports, Studies
Newsfeed
Whitepapers
Events
About About us
Our Team
Advertise With Us
Investors/ M&A/ Private Equity & Venture Capital
BlackRock Acquires Infrastructure Giant GIP for $12.5 Billion
Mark Segal
January 12, 2024
Investment giant BlackRock announced today the acquisition of infrastructure investor Global Infrastructure Partners (GIP) in a cash and stock deal valuing the company at $12.5 billion, citing emerging long-term opportunities in areas including decarbonization, energy security, digital infrastructure, and supply chain transitions.
Founded in 2006, New York-based GIP is the world’s largest independent infrastructure manager with over $100 billion in assets under management across infrastructure equity and credit strategies, targeting investments in the energy, transportation, digital, and water and waste sectors. The company’s investments include major renewables platforms Clearway, Vena, Atlas and Eolian, in addition to the Gatwick, Edinburgh, and Sydney airports, data center developers CyrusOne, waste and water circular solutions provider Suez, and rail and port operators.
The deal follows BlackRock’s characterization of infrastructure as a major source of investment opportunity in its recent 2024 Private Markets Outlook, released in December, driven by the low-carbon transition as a key mega-theme, and highlighting an upcoming “massive reallocation of capital” to rewire energy systems around the world. GIP has described decarbonization as central to its investment thesis.
In its press release announcing the acquisition, BlackRock said that the deal comes as “infrastructure is forecast to be one of the fastest growing segments of private markets in the years ahead,” with key drivers including increasing global demand for upgraded digital infrastructure, supply chain rewiring leading to renewed investment in logistical hubs such as airports, railroads and shipping ports, and decarbonization and energy security trends around the world.
BlackRock also noted the opportunities for infrastructure-focused private investors from participate in public-private partnerships in an environment of large government deficits, in addition to a conducive environment driven by high interest rates, with companies looking to improve return on capital through partnership opportunities for their embedded infrastructure assets.
BlackRock Chairman and CEO Larry Fink said:
“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 prioritize 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.”
Post-acquisition the combined company will boast a greater than $150 billion global infrastructure platform, led by the GIP management team. GIP founding partner, Chairman and CEO Bayo Ogunlesi will also join the board of BlackRock, following the close of the transaction, the companies said.
Ogunlesi said:
“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, mobilizing long-term private capital through long-standing firm relationships.”
Mark Segal
Related Posts
Investors /
BNP Paribas AM to Expand Range of Sustainable, Impact Investment Solutions
M&A /
Anthesis Acquires Sustainability Consultancy Revolt
Private Equity & Venture Capital /
Circularity Tech Startup Resynergi Raises $6.4 Million to Scale Plastic Recycling Solution
‹ Circularity Tech Startup Resynergi Raises $6.4 Million to Scale Plastic Recycling Solution
ESG Today Newsletter – Subscribe
Subscribe to the ESG Today NewsletterJoin our mailing list for the latest breaking ESG investment news!
LevelC-LevelSVP / EVPDirector / VPManager / SupervisorMid or Entry LevelFreelance / ContractStudent / InternRetiredOther
FunctionAccounting & FinanceBusiness Development & SalesCustomer SupportFacilitiesHR & TalentInvestingLegalMarketing & CommunicationsOperationsR & DProcurement & ContractingSupply Chain & DistributionSustainabilityStrategyTechnologyOther
SUBSCRIBE!
You have Successfully Subscribed!
Sustainable Finance
Iberdrola Secures €300 Million ESG-Linked Loan from World Bank for Energy Transition Projects in Emerging Markets
ABN AMRO Appoints Tanja Kramer as Head of Sustainable Impact Fund
Pattern Energy Closes $11 Billion Financing for Massive U.S. Clean Energy Project
Iberdrola Signs €5.3 Billion Credit Line with Rates Tied to Climate, Diversity Goals
Government
Former UK Conservative Energy Minister Resigns over Government Plan for New North Sea Oil & Gas Licenses
Canada Consults on Launch of New Federal Plastic Registry
Canada Finalizes Regulation Requiring 100% Zero Emission New Car Vehicle Sales by 2035
Biden Administration Proposes Strict Requirements to Qualify for Clean Hydrogen Tax Credit
Categories
Select Category
Business Wire
ESG News
Analysis
Climate
Companies
Energy Transition
Environment
ESG Reporting
ESG Tools, Services
Executive Moves
Governance
Government
Guest Posts
Investors
M&A
New funds & products
Platforms & Markets
Private Equity & Venture Capital
Professional bodies
Regulators
Reports, Studies
Social
Social & Governance
Sustainable Finance
Welcome
Back to Top
Home
About us
Disclosure, cookies & privacy policy
© ESG Today 2024
Don’t miss the top ESG stories!Join the ESG Today daily newsletter and get all the top ESG stories, like this one.
Subscribe now below!
LevelC-LevelSVP / EVPDirector / VPManager / SupervisorMid or Entry LevelFreelance / ContractStudent / InternRetiredOther
FunctionAccounting & FinanceBusiness Development & SalesCustomer SupportFacilitiesHR & TalentInvestingLegalMarketing & CommunicationsOperationsProcurement & ContractingR & DStrategySupply Chain & DistributionSustainabilityTechnologyOther
SUBSCRIBE!
You have Successfully Subscribed!
Never miss the latest breaking ESG investment news. Get ESG Today’s newsletter today!
Subscribe Now
c
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy