• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

BlackRock buys Nigerian infrastructure firm GIP for $12.5 billion in major alternatives push

2 years ago
in Business, Features, highlights, Home, home-news, latest News, Real Estate
2 min read
0 0
0
729
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

BlackRock buys Nigerian infrastructure firm GIP for $12.5 billion in major alternatives push

BlackRock Inc. agreed to buy Adebayo Ogunlesi’s Global Infrastructure Partners for about $12.5 billion, vaulting the world’s biggest money manager into the top ranks of investors that make long-term bets on energy, transportation and digital infrastructure.

BlackRock will pay $3 billion of cash and about 12 million shares, worth about $9.5 billion at Thursday’s close, and the deal is expected to close in the third quarter. Ogunlesi, a former Credit Suisse executive who’s GIP’s chairman and chief executive officer, will join BlackRock’s board and global executive committee.

The acquisition of GIP, which manages $100 billion, is the biggest deal in more than a decade for BlackRock and a major step by CEO Larry Fink to transform the firm into a key player in the rapidly growing market for private and alternative assets.

“The unprecedented need for new infrastructure – for digital infrastructure, for upgraded logistics hubs, and for decarbonization and energy security – coupled with record high government deficits means that private capital will be needed like never before,” Fink and BlackRock President Rob Kapito said in a memo to employees. “This will be one of the fastest-growing areas of our industry over the next 10 years.”

The deal, announced in a statement Friday along with a significant management shuffle, was the firm’s largest acquisition since its 2009 purchase of Barclays Global Investors, putting the asset manager on a path to becoming the biggest provider of exchange-traded funds. The GIP agreement came as the firm posted better-than-expected fourth-quarter earnings with inflows pushing its total client assets back above $10 trillion for the first time in two years.

BlackRock’s shares fell slightly at 6:30 a.m. in early New York trading.

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

Fink, 71, built BlackRock largely on the back of a bet that investors big and small would take cheaper access to investing in indexes of public companies rather than pay stock-pickers. The deal for GIP marks a new conviction that the biggest institutions will pay higher fees to put money to work in illiquid funds that back major, complex projects.

BlackRock is also seeking to position itself as a one-stop shop for a full range of investing options, including alternative assets that are in greater demand by institutional clients such as pensions, endowments and sovereign wealth funds. While alternatives currently account for roughly 3% of BlackRock’s assets under management, they bring in about 10% of fees.

The firm’s assets in illiquid alternatives jumped about 65% in the three years through September, and in 2023 it acquired Kreos Capital to fuel its growth in private debt.

Combining GIP with the roughly $50 billion of infrastructure assets that BlackRock managed at the end of September will create a unit to rival the industry’s largest players, including Macquarie Asset Management and Brookfield Asset Management. In recent years, BlackRock participated in multibillion-dollar investments in pipelines in the Middle East, a carbon-capture project in Texas and a fiber network venture with AT&T Inc.

Infrastructure has been a growing corner of the alternatives market as investors see opportunities to profit from helping to fill what consultants at McKinsey project will be a $15 trillion spending gap on global infrastructure through the end of the decade. That demand held up even during recent dips in other private products, as fundraising in the area rose in 2022 while private equity and real estate’s totals slumped.

GIP has been among the biggest players in that world, taking notable stakes in some of the busiest airports, including London’s Gatwick. While infrastructure bets can include more mundane projects such as toll roads and bridges, investing giants have also increasingly seen opportunities in energy-transition projects and data centers. They’re drawn by the typically stable, recurring returns those assets can generate.

Ogunlesi, 70, launched the firm in 2006 with backing from General Electric Co. and Credit Suisse, and its portfolio companies have combined annual revenues of more than $80 billion, according to its website. Ogunlesi currently serves as Goldman Sachs Group Inc.’s lead director.

In 2019, GIP raised a then-record $22 billion for a flagship fund, Global Infrastructure Partners IV, and recently has been raising a fifth fund.

Five of GIP’s founding partners will join BlackRock. About 30% of the shares will be deferred for about five years, and BlackRock said it will issue debt to cover the cash portion. Perella Weinberg Partners advised BlackRock, while Evercore Inc. was lead adviser for GIP.

Source: bloomberg
Tags: BlackRockBlackRock buys Nigerian infrastructure firm GIP for $12.5 billion in major alternatives pushNigerian infrastructure firm GIP
No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
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.