BlackRock's transformational deal

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BlackRock chief executive Larry Fink has been searching for years for the right private markets partner to make his $10tn money manager as formidable a player in alternative investments as it is in traditional asset management.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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15 Jan 2024

On Friday, he announced a transaction that may do just that. BlackRock has struck a deal to buy Global Infrastructure Partners for more than $12.5bn in cash and stock, a move that will substantially boost its footprint in alternative assets.

Acquiring GIP, which has about $106bn in assets under management, will make BlackRock the world’s second-largest manager of private infrastructure assets, and bolster the leadership of its alternatives business.

Fink has been openly hunting for a transformational deal along the lines of the 2009 purchase of BGI from Barclays that gave BlackRock a dominant position in passive investing and helped make it the world’s largest money manager.

But his overtures to private equity, private credit and hedge funds rarely got beyond the first meal, write my colleagues Brooke Masters a