BlackRock has splashed out US$12.5bn to beef up its alternatives and infrastructure portfolio through the acquisition of Global Infrastructure Partners (GIP).
Already the world’s largest fund manager, GIP brings with the US$100bn portfolio containing airports, such as London’s Gatwick, toll roads and bridges, green energy projects and data centres.
Adebayo Ogunlesi, GIP’s founder, will join the Blackrock board on completion of the shares and cash deal.
“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,” Blackrock chief executive Larry Fink said in a memo to staff.
“This will be one of the fastest-growing areas of our industry over the next 10 years,” he added.
It is Blackrock’s biggest deal since the hugely successful acquisition of Barclays Global Investors transformed it into one of the dominant players in ETFs.
Fink announced the deal alongside fourth-quarter earnings of US$9.66 per share and revenues of US$4.93bn, which was ahead of expectations.
Assets under management also topped US$10 trillion with an inflow US$96bn in the quarter of the year even with the controversies surrounding the group's investment stance deemed 'woke' capitalism by critics.
Earlier this week, Blackrock said it was cutting 600 jobs from its 20,000 headcount as part of a cost-cutting among all its investment teams.
The group also launched what was described as the most successful first day in the history of ETFs when it pulled in more than US$3bn for its new iShares Bitcoin Trust (IBIT).
At that time Funk hinted that “transformational” deals were on the cards for the group this year as it looks to diversify its product range.