Infrastructure fund manager, Global Infrastructure Partners (GIP), is being swallowed up by BlackRock, a giant in the provision of investment, advisory, and risk management solutions, in a deal valued at US$12.5 billion.

BlackRock says the acquisition—set to close in the third quarter of 2024 subject to regulatory approvals and other conditions—will create “a world-leading infrastructure private markets investment platform.”

GIP is well known in aviation circles as a lead shareholder in several key airport assets. Among them are the UK airports London Gatwick (LGW) and Edinburgh (EDI) in Scotland, plus Sydney Airport, Australia’s largest and primary international gateway serving 38.7 million passengers in 2023. The group also owned a 75% stake in London City Airport (LCY) before selling it in 2016.

The infrastructure investor—which has over US$100 billion in assets under management (AUM)—also owns Signature Aviation, the world’s largest fixed-base operator (FBO), providing refueling, hangar leasing, ground handling, de-icing, and other related services to the business and general aviation market. The company operates at over 170 locations and has a strong presence at the top 50 airports in the United States.

The transaction, announced in mid-January, is designed to create a multi-asset class platform for infrastructure investment. Together with BlackRock’s existing portfolio, the combined client AUM of the merged business is over $150 billion. This will make it a hugely powerful player in the aviation market should this be a target for the new platform. It will also strengthen deal flow and co-investment opportunities.

So why is BlackRock piling into the infrastructure sector, and why now?

Investor Insights