BlackRock Posts Earnings Beat, Buys Global Infrastructure Partners for $12.5 Billion

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BlackRock Posts Earnings Beat, Buys Global Infrastructure Partners for $12.5 Billion

BlackRock beat earnings expectations as the world’s largest money manager saw its assets top $10 trillion in the fourth quarter of 2023. The bigger news was the company’s acquisition of Global Infrastructure Partners in a $12.5 billion push into private markets.

BlackRock reported earnings of $9.66 a share on revenue of $4.63 billion in the quarter. That beat expectations of profit at $8.84 a share among analysts surveyed by FactSet, while revenue was in line with estimates. A year earlier, BlackRock reported revenue of $4.3 billion and earnings of $8.93.

Assets under management topped $10 trillion, with $96 billion in net inflows in the fourth quarter alone, the company said. Analysts had expected BlackRock to finish 2023 with assets under management of $9.8 trillion.

But hogging the spotlight as BlackRock kicked off earnings season alongside other financial giants on Friday was news that the group bought Global Infrastructure Partners in a deal worth some $12.5 billion. The transaction, expected to close in the third quarter, comprises $3 billion in cash and 12 billion shares of BlackRock common stock, which closed at a price of $792.61 on Thursday.

“The combination of BlackRock infrastructure with GIP will make us the second largest private markets infrastructure manager with over $150 billion in total AUM, providing clients—especially those saving for retirement—with the high-coupon, inflation-protected, long-duration investments they need,” BlackRock Chairman and CEO Larry Fink said in a statement.

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