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BlackRock makes energy acquisition as U.S. infrastructure policy looms: Reuters

BlackRock Inc is pushing further into the private infrastructure market with an agreement to buy First Reserve Corp‘s Energy Infrastructure Funds unit.

The 37-member energy infrastructure team at First Reserve, which manages $3.7 billion in two funds, will join BlackRock, the New York-based asset manager said in a statement on Wednesday. The team has investments in North America, Latin America, Europe and Southeast Asia.

The deal by the world’s largest asset manager comes as BlackRock Chief Executive Officer Larry Fink has pushed for more public-private partnerships to rebuild key infrastructure and as the young administration of U.S. President Donald Trump has touted a possible $1 trillion plan.

Fink recently joined an advisory council to Trump that includes several other CEOs.

“This transaction enables BlackRock to better connect its clients with energy infrastructure projects that can provide income generation, diversification and inflation protection,” BlackRock said in a statement.

Terms of the deal were not disclosed. It is expected to close by the end of the second quarter.

BlackRock, known more for stock and bond funds, has been building up its infrastructure unit, which it started in 2011.

The group works on public-private partnerships globally and on complex endeavors that can range from wind farms to transportation projects, financed by equity or debt.

BlackRock said its private infrastructure arm would manage $14 billion after the deal closes. Overall, BlackRock manages $5.1 trillion in assets.

Photo: A BlackRock building is seen in New York June 12, 2009. Reuters/Eric Thayer