[Context: On June 5, BlackRock announced the close of its acquisition of First Reserve Energy Infrastructure Funds to become part of its BlackRock Real Assets platform. The deal includes two closed-end equity infrastructure funds and their investment advisors, as well as 36 professionals located in Greenwich, Houston and London.]
BlackRock Closes Transaction to Acquire Energy Infrastructure Franchise from First Reserve
Real Assets Platform Grows to Manage $36.5 billion of Client Assets*
NEW YORK–June 05, 2017–(BUSINESS WIRE)–BlackRock, Inc. (NYSE:BLK) has successfully closed the acquisition of First Reserve Energy Infrastructure Funds, the equity energy infrastructure franchise of First Reserve, a leading global private equity firm exclusively focused on energy. This transaction complements BlackRock’s Real Assets’ platform with a proven team in energy infrastructure investing, enhancing its ability to deliver energy and power infrastructure opportunities to its clients.
The business acquired by BlackRock includes two closed-end equity infrastructure funds and their investment advisors, as well as 36 professionals located in Greenwich, Houston and London. Through this acquisition, the BlackRock Real Assets platform grows to approximately $36.5 billion in client assets.*
“Mark Florian and his team of energy and power infrastructure professionals bring to BlackRock unparalleled expertise in energy infrastructure investing. I am thrilled they are joining our team,” said Jim Barry, global head of BlackRock Real Assets. “This transaction expedites the growth trajectory of our platform and our ability to deliver to our clients a diverse platform of infrastructure investment solutions that can provide income generation, diversification and inflation protection.”
“BlackRock is a best-in-class infrastructure solutions provider with a demonstrated ability to deliver on clients’ evolving needs,” said Mark Florian, Head of Energy and Power Infrastructure at BlackRock and former Head of First Reserve Energy Infrastructure Funds. “I am excited that existing investors will receive long-term benefits from what we believe are complementary strengths, augmenting the team’s energy infrastructure expertise with BlackRock’s world-class capabilities and global network.”
“We are very grateful to Mark Florian and his team for their hard work and success in building a differentiated infrastructure platform,” added Alex Krueger, President and Co-CEO of First Reserve. “First Reserve remains excited for the future prospects of the platform and its investors as part of the BlackRock organization. We are committed to a smooth transition on behalf of all our limited partners, and we look forward to continuing to pursue attractive energy investment opportunities in our private equity funds.”
The combination of the two platforms received overwhelming support from the existing fund investors and received all necessary regulatory approvals. The financial impact of the transaction is not material to BlackRock earnings per share. Terms were not disclosed.
*Represents combined invested and committed capital as of May 31, 2017.
BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At March 31, 2017, BlackRock’s AUM was $5.4 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of March 31, 2017, the firm had approximately 13,000 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website at www.blackrock.com | Twitter: @blackrock_news | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock
About BlackRock Real Assets
BlackRock, the largest investment manager in the world, sits at the intersection of global capital and Real Asset investing opportunities. With deep industry expertise, demonstrated access to proprietary deals and a purely fiduciary mindset, our experienced investment professionals leverage BlackRock’s risk management capabilities, global reach and deep local presence to deliver compelling investment opportunities to meet our clients’ needs. BlackRock provides investors with Private Real Estate Debt & Equity, Real Estate Securities and Infrastructure Debt & Equity via funds, co-investments and managed accounts, and currently has approximately $36.5 billion in invested and committed Real Estate and Infrastructure assets and capital as of May 31, 2017. Our approximately 365-person team is based in 25 offices globally.*
*Includes combined invested and committed capital to BlackRock’s Real Assets platform and First Reserve Energy Infrastructure Funds, as well as headcount and office locations from the First Reserve Energy Infrastructure Funds transaction as of May 31, 2017.
About First Reserve
First Reserve is a leading global private equity investment firm exclusively focused on energy. With nearly 35 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised approximately USD $31 billion of aggregate capital since inception. Putting these to work, First Reserve has completed more than 600 transactions (including platform investments and add-on acquisitions) on six continents. Its portfolio companies span the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services, and associated infrastructure. Visit www.firstreserve.com for more information.