BlackRock Infrastructure Investment Strategy
Compelling value for BlackRock shareholders
Consideration¹
·
$3 billion of cash delivered at closing, funded by incremental debt
.
•
•
BlackRock is currently rated AA- with S&P2 and Aa3 with Moody's²
This transaction is not expected to meaningfully change its leverage profile
Approximately 12 million shares of BlackRock common stock
•
~7 million shares delivered at closing with 2-year lockup³
.
~5 million shares paid in ~5 years based on achievement of certain performance milestones
Indicative
valuation
.
.
•
Nominal value of ~$12.55 billion (including deferred shares and $650 million of retention)
Acquired business adds $400 million+ of 2024E post-tax, margin-accretive FRE4
Implied acquisition multiple of ~25-29x 2024E P/FRE excluding $650 million retention pool and
future carry - in-line with premium private markets franchises now trading at 25-35x P/FRE5
Retention
•
GIP owners/employees will retain carry in existing funds, a significant source of long-term value
~$650 million of retention, to be funded out of transaction consideration
~60% of carried interest on future funds to be shared with combined infrastructure team
Note: For footnoted information, refer to slide 12.
BlackRock.
9View entire presentation