BlackRock Closes Transaction to Acquire Energy Infrastructure Franchise from First Reserve

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.


Source: BlackRock
Date: Jun 5, 2017