BlackRock has entered into an agreement to acquire First Reserve’s Energy Infrastructure Funds unit to expand its $10bn infrastructure platform.
The 37-member energy infrastructure team at First Reserve manages nearly $3.7bn in committed capital across two funds with a global investment footprint, including investments in North America, Latin America, Europe and Southeast Asia.
Since 2010, it has acquired or closed 21 portfolio companies.
The transaction is expected to enable BlackRock to better connect its clients with energy infrastructure projects.
BlackRock Alternative Investors global head Mark McCombe said: “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.”
Following the completion of the acquisition, BlackRock’s Infrastructure platform will manage approximately $14bn in client assets.
The transaction, which is subject to customary closing conditions, is expected to close by the end of the second quarter of 2017.
However, the terms of the transaction were not disclosed.
FREIF head Mark Florian 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.”
First Reserve is a major global private equity investment firm exclusively focused on energy, covering the energy spectrum from upstream oil and gas to processing and distribution.
The firm has raised about $31bn of aggregate capital since inception and its portfolio companies operate across six continents.