BlackRock (BLK) agreed to acquire First Reserve Energy Infrastructure Funds, the equity infrastructure business of energy-focused private equity firm First Reserve, BlackRock spokesman Ed Sweeney said.
Terms of the deal were not disclosed. The energy infrastructure team at First Reserve manages about $3.7 billion in committed capital across two funds. The 37-person global team, led by Mark B. Florian, a managing director, has announced or closed deals for 21 portfolio companies since 2010.
The energy infrastructure team will join BlackRock's infrastructure investment platform once the deal is finalized. BlackRock's infrastructure platform will manage roughly $14 billion in assets when the transaction closes by the end of the second quarter.
As part of the BlackRock infrastructure platform, the energy infrastructure team plans to continue its strategy of targeting equity investments in projects and companies with contracted revenue, visible yield streams and long-term capital appreciation.
The team will also continue to act as a strategic partner to its portfolio companies, management teams and counterparties through investments in four core sectors: contracted power, contracted midstream, other contracted energy assets and regulated transmission and distribution.
BlackRock had $5.1 trillion in assets under management as of Dec. 31.