BlackRock has entered into a definitive agreement to acquire Infraestructura Institucional, Mexico's infrastructure investment firm, expanding BlackRock's infrastructure capabilities in the country.
Infraestructura Institucional is an investor across a broad range of infrastructure projects in Mexico and manages approximately US$1 billion of invested and committed capital. The team has extensive experience investing across infrastructure project types in Mexico including transportation, energy and social infrastructure.
The agreement builds upon BlackRock's existing US$6 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 US$7 billion of invested and committed assets and over 80 employees located in 6 offices globally. The firm's Mexico office will grow to over 50 employees and US$26 billion of assets under management.
The transaction is subject to regulatory approvals and is expected to close by the end of the fourth quarter of 2015. Terms were not disclosed.
Jim Barry, global head of BlackRock's Infrastructure Investment Group, stated:
"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. Adding the Infraestructura Institucional team will enhance BlackRock's ability to deliver previously untapped investment opportunities in Mexico to our local and international clients,"
Armando Senra, head of the Latin America & Iberia Region at BlackRock, commented:
"This acquisition advances BlackRock's growth strategy in Mexico and Latin America and builds upon our well-established track record in the region. Mexico is well-positioned for long-term economic growth and we are excited to further expand our presence in the country."