BlackRock seals $12bn deal to buy Global Infrastructure Partners

US private equity giant BlackRock has completed a deal worth $12.5bn to buy Global Infrastructure Partners, the owner of Skyborn Renewables and other green energy players.

BlackRock announced on Tuesday the completion of the acquisition, which it said “creates an industry leader in infrastructure across equity, debt and solutions.”

The combined infrastructure platform will be branded as Global Infrastructure Partners (GIP), a part of BlackRock.

“Infrastructure represents a generational investment opportunity,” said Laurence Fink, BlackRock chair and CEO.

“Through the combination of BlackRock and GIP, we are well positioned to capitalise on the long-term structural trends that will continue to drive the growth of infrastructure and deliver superior investment opportunities for clients globally.”

Founded in 2006, GIP manages assets across infrastructure equity and debt, with a focus on the energy, transport, water and waste and digital sectors.

GIP owns Latin American renewable energy firm Atlas Renewable Energy and Asia-Pacific developer Vena Energy.

It also has interests in US renewables producer Terra-Gen Power and ACS Renewables along with several wind farms, including a 50% stake in Danish developer Orsted’s 1.2GW Hornsea 1 offshore wind farm in the UK.

The new GIP platform will have around $170bn assets under management, including 300 active investments in more than 100 countries, said BlackRock.

“We are excited to embark on this new chapter” with the goal of creating “the premier global infrastructure investing firm,” said GIP chair Bayo Ogunlesi, who is retaining his position post takeover.

“The combination of our institutional intellectual capital, investing and business improvement capabilities, global footprint, corporate and government relationships will allow us to deliver attractive investments for our investors and innovative solutions for our customers.”