BlackRock, the world's largest fund manager with $10 trillion assets under management, agreed to buy private-equity firm Global Infrastructure Partners (GIP) for $12.5 billion in cash and stock. This is BlackRock’s largest acquisitions since it bought Barclays’s asset management business in 2009.
"We believe infrastructure is only at the beginning of a real major asset class. There are some structural demands that are going to increase the issuance of more and more infrastructure.
Deficits matter it's going to be harder and harder for countries to continue to deficit finance and at the same time there's a giant need to rebuild and build out infrastructure.
We have a decarbonization process more and more countries are more interested than ever before in energy independence and one of the ways in countries that do not have available hydrocarbons they're going to be doing it through wind and solar maybe other forms of decarbonization."
This is a significant step for the infrastructure sector as private-market investments takes advantage of the Inflation Reduction Act and other government driven demand.
Here's our other post of the Inflation Reduction Act.
Source. Bloomberg