BlackRock Inc. has agreed to acquire Global Infrastructure Partners (GIP), managed by Adebayo Ogunlesi, for approximately $12.5 billion. This marks BlackRock's largest deal since its 2009 acquisition of Barclays Global Investors. The purchase includes $3 billion in cash and around 12 million shares valued at $9.5 billion. Ogunlesi will join BlackRock’s board and global executive committee.

The acquisition significantly enhances BlackRock's position in the growing market for private and alternative assets, particularly in infrastructure investments. This move aligns with CEO Larry Fink’s strategy to diversify BlackRock’s offerings, especially in areas expecting substantial growth due to a rising demand for new infrastructure and the involvement of private capital.

GIP, with $100 billion under management, is notable for investments in sectors like energy, transportation, and digital infrastructure. Its integration with BlackRock’s existing $50 billion in infrastructure assets will create a formidable unit in the industry, competing with leading players like Macquarie Asset Management and Brookfield Asset Management.

BlackRock's expansion into illiquid alternatives, including infrastructure and private debt, reflects a strategic shift to meet institutional clients' demands for a broader range of investment options. Despite alternatives constituting a small portion of BlackRock’s total assets under management, they contribute significantly to the firm's fee revenue.

GIP's portfolio, with companies generating over $80 billion in annual revenue, includes investments in major airports and energy-transition projects. This acquisition positions BlackRock to capitalize on the expected $15 trillion global infrastructure spending gap over the next decade.