blackrock news: BlackRock signs $12.5 billion deal with global infrastructure partners
The deal, which includes $3 billion in cash and 12 million shares of BlackRock stock, will put the asset management giant at the center of investments in ports, power and digital infrastructure projects around the world. Once the transaction is complete, the company will have approximately $150 billion in infrastructure assets across a portfolio ranging from the U.S. liquefied natural gas export market to wastewater services in France and airports in the U.K. and Australia.
Surging demand for logistics and digital infrastructure and the trillions of dollars needed to transition away from high-carbon energy have increased the popularity of this asset class among institutional investors.
“Infrastructure is one of the most exciting long-term investment opportunities,” said Larry Fink, CEO. “This is because structural changes are reorganizing the global economy.”
BlackRock, which manages $10 trillion across all markets, is looking for deals that could be transformational as revenue stagnates and its environmental, social and corporate governance business comes under political attack in the United States.
“This is an opportunity for (Fink) to put his final fingerprint on the company” and allow it to compete with companies like BlackStone and Apollo Global Management, said Kyle Sanders, an analyst at Edward Jones who has a buy rating on the stock.
Founded in 2006, GIP manages more than $100 billion in assets and has a portfolio that includes the UK’s Gatwick Airport, the Port of Melbourne and major offshore wind projects. management change
BlackRock also unveiled changes to its senior management structure amid growing speculation about who will succeed Fink, who founded BlackRock in 1988.
Stephen Cohen will become chief product officer and lead a new global product strategy group, while Salim Ramji, global head of iShares and index investing, is leaving, according to a company memo seen by Reuters. .
BlackRock is also creating a new international business structure to lead Europe, the Middle East, India and Asia Pacific under Rachel Lord, the memo said.
Five of GIP’s founding partners will join BlackRock, he said, adding that GIP Chairman Bayo Ogunlesi will also join BlackRock’s board of directors following the close of the transaction.
Ogunlesi will step down from the Goldman Sachs board after moving to BlackRock, Goldman CEO David Solomon said Friday.
CFRA analyst Cathy Seifert said the deal adds “a new contender” to the list of candidates to succeed the 71-year-old Fink. Fink has not yet named a successor.
“As alternative assets become an increasingly important part of BlackRock’s business mix, the private equity skill set of our next leader will become even more important,” she said.
profit bit
BlackRock also reported an 8% increase in quarterly revenue, helped by a rebound in markets that boosted assets under management.
Hopes for a soft landing for the U.S. economy — a scenario in which inflation eases without a spike in unemployment — have cheered markets in recent months.
The dovish nature of the U.S. Federal Reserve (Fed), which has frozen interest rates since July, also boosted sentiment, with BlackRock’s assets under management (AUM) rising to $10.01 trillion in the fourth quarter from $8.59 trillion a year ago. It helped me finish.
On an adjusted basis, BlackRock earned $1.45 billion, or $9.66 per share, in the three months ended Dec. 31, compared with $1.36 billion, or $8.93 per share, a year ago.
Analysts on average had expected profit of $8.84 per share, according to LSEG data.
The company’s shares fell 0.4% Friday, while the S&P 500 index rose about 0.3%.
