In January 2024, BlackRock, the world’s largest asset manager with $11.5 trillion AUM, acquired Global Infrastructure Partners (GIP) for $12.5 billion through a combination of $3 billion cash and approximately 12 million BlackRock shares. This strategic acquisition combines BlackRock’s $50 billion infrastructure platform with GIP’s $100 billion portfolio, creating the second-largest infrastructure private markets manager globally.

The deal responds to growing demand for private infrastructure investment, driven by a $15 trillion global funding gap identified by the G20. GIP, founded in 2006, brings expertise in transportation, digital infrastructure, and energy sectors with investments in major airports, renewable energy platforms, ports, and data centers, complementing BlackRock’s strengths in decarbonization and renewable energy.

The acquisition is expected to generate over $400 million in post-tax annual fee-related earnings at margins exceeding 50% and nearly double BlackRock’s private markets management fees to over $1.5 billion. The transaction includes a $650 million retention pool for GIP employees, while maintaining GIP’s existing carry structure to preserve incentive alignment.

Both companies’ leadership, including BlackRock CEO Larry Fink and GIP Chairman Adebayo Ogunlesi, share the vision that infrastructure investments will be the fastest-growing part of private markets, offering stable, inflation-linked returns attractive to retirement investors who represent 65% of BlackRock’s clients.