Blackrock Acquires Adebayo Ogunlesi’s Global Infrastructure Partners For $12.5billion

BlackRock, the world’s largest asset management company, has acquired Global Infrastructure Partners (GIP), a company founded by Nigerian investment banker Adebayo Ogunlesi, in a $12.5 billion deal.

In a statement on Friday, January 12, BlackRock said it will pay $3 billion in cash and provide Adeboye Ogunlesi along with five other co-founders of GIP with 12 million shares in BlackRock.

This move positions them as the second-largest shareholders in the global asset management giant.

The statement also revealed that BlackRock intends to appoint Ogunlesi, the founding partner of GIP, as the chairman and CEO to the board at the next scheduled meeting following the completion 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,” the statement said.

BlackRock emphasized that the acquisition aligns with the vision of Laurence Fink, the chairman and CEO, to transform the firm into a significant player in the expanding market for private and alternative assets.

It added, “The over $150 billion combined business will seek to deliver clients market-leading, holistic infrastructure expertise across equity, debt and solutions at substantial scale.

“Marrying 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 clients.

“We believe bringing GIP and BlackRock together will deliver to clients the benefits of broader origination and business improvement capabilities.”

Commenting on the acquisition, Fink said that the deal represents “one of the most exciting long-term investment opportunities.”

Global Infrastructure Partners currently manages $106 billion in infrastructure investments, while BlackRock oversees $10 trillion worth of alternative assets.

Adebayo Ogunlesi, an alumnus of King’s College Lagos and Harvard University, previously served as the chief client officer and vice chairman at Credit Suisse First Boston before establishing Global Infrastructure Partners.

The deal solidifies BlackRock’s position as the second-largest private investor and manager of infrastructure worldwide.

KanyiDaily recalls that Nigerian billionaire, Aliko Dangote has reclaimed his position as the richest person in Africa, surpassing South African business magnate, Johann Rupert, according to reports from Forbes and Bloomberg.