BlackRock is to acquire Infraestructura Institucional, Mexico’s leading independently managed, infrastructure investment firm, expanding BlackRock’s infrastructure capabilities in Mexico.
The agreement builds upon BlackRock’s existing USD6 billion global infrastructure platform and strengthens the Firm’s long-standing Mexico business. The acquisition will fully enable BlackRock to deliver to its local and international clients the compelling infrastructure opportunities emerging in Mexico. Upon closing, BlackRock’s infrastructure investment platform will manage more than USD7 billion of invested and committed assets and over 80 employees located in six offices globally. The Firm’s Mexico office will grow to over 50 employees and USD26 billion of assets under management.
Infraestructura Institucional is a leading investor across a broad range of infrastructure projects in Mexico and manages approximately USD1 billion of invested and committed capital. The team has extensive experience investing across infrastructure project types in Mexico including transportation, energy and social infrastructure.
“As our clients’ demand for high quality infrastructure assets continues to grow, we believe that Mexico presents a rapidly evolving investment opportunity for institutional investors globally,” says Jim Barry, global head of BlackRock Infrastructure Investment Group. “Adding the Infraestructura Institucional team will enhance BlackRock’s ability to deliver previously untapped investment opportunities in Mexico to our local and international clients.”
“This acquisition advances BlackRock’s growth strategy in Mexico and Latin America and builds upon our well-established track record in the region,” says Armando Senra, head of the Latin America & Iberia Region at BlackRock. “Mexico is well-positioned for long-term economic growth and we are excited to further expand our presence in the country.”
The transaction is subject to regulatory approvals and is expected to close by the end of the fourth quarter of 2015. The financial impact of the transaction is not material to BlackRock earnings per share. Terms have not been disclosed.