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BlackRock to Buy GIP, Adebayo Ogunlesi’s Firm, at $12.5 Billion

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BlackRock, US Based Firm

Adebayo Ogunlesi, Chairman and CEO of Global Infrastructure Partners (GIP), is set to join BlackRock’s board and global executive committee in exchange for a $12.5 billion deal.

BlackRock Inc., the world’s largest asset manager, disclosed on Friday that it has struck a deal to buy GIP, founded by the Nigerian lawyer and former Credit Suisse. Ogunlesi is currently the lead independent director at Goldman Sachs Group Inc.-  a position he might have to drop to join BlackRock’s Board.

BlackRock’s strategic acquisition of GIP positions it as the world’s largest independent infrastructure manager. The mega-deal involves BlackRock paying $3 billion in cash and approximately 12 million shares. This transaction reinforces Laurence D. Fink’s vision to elevate the firm’s standing in the private and alternative assets market. The joint infrastructure platform, led by GIP’s management team, is anticipated to create unparalleled investment opportunities globally.

Fink, BlackRock Chairman and CEO emphasizes the long-term potential in infrastructure investments, citing global economic shifts and government priorities as catalysts.

A delighted Fink anticipates Ogunlesi’s inclusion on the board, emphasizing the synergy between BlackRock’s understanding of investment risk and GIP’s expertise in operational efficiency for long-term value creation.

“GIP’s deep understanding of the factors and forces driving operational efficiency for long-term value creation has made it a global leader in infrastructure investing. Bringing these two firms together will create the infrastructure platform to deliver best-in-class investment opportunities for clients globally, and we couldn’t be more excited about the opportunities ahead of us,” he stated.

The deal, BlackRock’s largest since acquiring Barclays Global Investors in 2009, boosts its chances of becoming a leading provider of exchange-traded funds. With GIP managing $100 billion in assets, the acquisition propels BlackRock into the private and alternative assets market. The combined entity challenges industry giants as Black Rock is set to climb higher in its rank as one of the world’s leading providers of investment, advisory and risk management solutions

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