US asset manager Blackrock is set to acquire an investment portfolio worth over $100 billion for $12.5 billion. The deal is being orchestrated by two former Credit Suisse bankers.
Blackrock has agreed to the acquisition with the investment platform Global Infrastructure Partners (GIP), as announced on Friday. The purchase price of $12.5 billion will be paid in cash and shares. With this acquisition, the American financial institution will become one of the largest players in the field of alternative investments and private markets.
GIP, founded in 2006, manages assets worth more than $100 billion. Its portfolio includes Gatwick Airport in the UK, the Port of Melbourne, and offshore wind projects. The transaction is expected to be completed in the summer. GIP employs 400 people at eleven locations, while Blackrock has around 20,000 employees. The goal is to create an infrastructure investment platform with total assets of more than $150 billion.
Two former Credit Suisse executives are involved in the deal: Blackrock CEO Larry Fink and GIP President and Managing Partner Adebayo Ogunlesi. Both worked for the Swiss bank in the US in the 1980s.
Ogunlesi, a Nigerian, was one of the first Africans in a top position on Wall Street and earned a reputation as a “rainmaker”, a term for those who bring in the biggest deals. He did this for 23 years for Credit Suisse before founding GIP in 2006. He received support from the Swiss bank itself and from US corporation General Electric.
Ogunlesi will now become a member of Blackrock’s Global Executive Committee and will head the infrastructure business. There will also be changes in the rest of Blackrock’s management: Stephen Cohen will lead a new global strategy group as Chief Product Officer, while Salim Ramji, global head of iShares and index investments, is leaving the company.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇨🇭 🇬🇧 🇦🇺 🇳🇬 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Stephen Cohen, Salim Ramji, Adebayo Ogunlesi, Larry Fink |
| Companies | Global Infrastructure Partners (GIP), Credit-Suisse, Blackrock, General Electric |
| Currencies | US Dollar |
| Securities | None |
