First Reserve Energy Infrastructure Funds Joins BlackRock’s $10
Billion Infrastructure Platform
First Reserve to Advance Leading Private Equity Franchise
NEW YORK & GREENWICH, Conn.--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE:BLK) today announced that it has entered
into a definitive agreement to acquire First Reserve Energy
Infrastructure Funds (FREIF), the equity infrastructure franchise of First
Reserve, a leading global private equity firm exclusively focused on
energy. The Energy Infrastructure team will join BlackRock’s
Infrastructure Investment platform.
The Energy Infrastructure team at First Reserve manages approximately
$3.7 billion in committed capital across two funds with a global
investment footprint, including investments in North America, Latin
America, Europe and Southeast Asia. Led by Mark Florian, the team has
announced or closed 21 portfolio companies since 2010, almost all
negotiated on an exclusive basis. The global team of 37 investment
professionals and support staff will join BlackRock when the deal
closes, providing for continuity of strategy and portfolio management.
Governments and businesses around the world have become increasingly
aware of the need to invest in infrastructure and the role that
sophisticated investors can play in the development process. This
transaction enables BlackRock to better connect its clients with energy
infrastructure projects that can provide income generation,
diversification and inflation protection.
“Six years ago, we set out to create one of the leading infrastructure
investment platforms in the world. Since then, we’ve built world class
franchises in Renewable Power and Infrastructure Debt and leading Latin
American Infrastructure and Infrastructure Solutions businesses,” said
Mark McCombe, Global Head of BlackRock Alternative Investors. “The
global energy infrastructure market presents a unique investment
opportunity for clients seeking uncorrelated sources of return with
attractive yields.”
As part of the BlackRock Infrastructure platform, the Energy
Infrastructure team plans to continue its strategy of targeting equity
investments in projects and companies with contracted revenue, visible
yield streams and long-term capital appreciation. Further, the team will
continue to act as a strategic partner to its portfolio companies,
management teams and counterparties through investments in four core
sectors: Contracted Power, Contracted Midstream, Other Contracted Energy
Assets and Regulated Transmission and Distribution.
Alex Krueger, President and Co-CEO of First Reserve commented, “We are
pleased that a global organization of BlackRock’s quality has
acknowledged the work of First Reserve and the FREIF team. We believe
this acquisition by BlackRock will serve the FREIF platform and its
investors well. First Reserve is committed to making this a smooth
transition for our investors, and will remain devoted to pursuing
attractive opportunities throughout the energy value chain through our
private equity funds.”
BlackRock’s Infrastructure platform will manage approximately $14
billion in client assets when the transaction closes. Backed by
BlackRock’s market-leading risk management, the Infrastructure platform
provides access to sectors and geographies undergoing fundamental
change, where BlackRock sees opportunity to create value for investors.
Jim Barry, Global Head of BlackRock’s Real Assets Group, added, “The
development of a Global Energy Infrastructure platform has been a
strategic priority for BlackRock. The team from First Reserve has a
strong reputation in the energy infrastructure industry and their
investment strategy strongly complements our existing capabilities.
Additionally, having worked together on recent transactions, we have
found a strong cultural fit.”
Mark Florian, Head of First Reserve Energy Infrastructure Funds, said,
“Given our past work together and their success in building out the
Infrastructure platform, we believe that a transition to BlackRock can
provide the perfect place to take our energy infrastructure franchise to
the next level. We are excited that FREIF’s investors will be able to
receive ongoing, long-term benefit from what we believe are
complementary strengths, augmenting the team’s energy infrastructure
expertise with BlackRock’s world-class capabilities and global network.”
The transaction is subject to customary closing conditions and is
expected to close by the end of the second quarter of 2017. The
financial impact of the transaction is not material to BlackRock
earnings per share. Terms were not disclosed.
About BlackRock
BlackRock is a global leader in investment management, risk management
and advisory services for institutional and retail clients. At December
31, 2016, BlackRock’s AUM was $5.1 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 December 31, 2016, 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 First Reserve
First Reserve is a leading global private equity investment firm
exclusively focused on energy, spanning the energy spectrum from
upstream oil and gas to processing and distribution, including
resources, equipment and services, and midstream and downstream. 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. First Reserve has completed
approximately 600 transactions (including platform investments and
add-on acquisitions), creating several notable energy companies
throughout the Firm's history, and its portfolio companies operate on
six continents. For more information, please visit www.firstreserve.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170201005395/en/
For BlackRock media inquiries, please contact:
Ed Sweeney,
646-231-0268
Ed.Sweeney@blackrock.com
or
For
First Reserve media inquiries, please contact:
Joele Frank,
Wilkinson Brimmer Katcher
Jonathan Keehner / Julie Oakes,
212-355-4449
joakes@joelefrank.com
Source: BlackRock, Inc.