The 37-member team of First Reserve Energy Infrastructure Funds (FREIF) will join the infrastructure investment platform of BlackRock Inc. Through entering a definitive agreement, BlackRock will acquire FREIF, according to a Feb. 1 press release.
Terms were not disclosed, and the financial impact of the transaction is not material to BlackRock earnings per share.
The energy infrastructure team at First Reserve, led by Mark Florian, manages about $3.7 billion across two global funds. The team has announced or closed 21 portfolio companies since 2010, almost all negotiated on an exclusive basis, the press release said.
BlackRock’s energy infrastructure team will continue working in the contracted power, contracted midstream, other contracted energy assets, regulated transmission, and distribution sectors.
When the transaction closes, BlackRock’s infrastructure platform will manage about $14 billion in client assets.
Jim Barry, global head of BlackRock’s real assets group, said developing a global energy infrastructure platform has been a priority for BlackRock.
The transaction is expected to close in second-quarter 2017.
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