How Adebayo Ogunlesi Sold His Infrastructure Company for $12.5 Billion and What It Means for Africa

Global Infrastructure Partners (GIP) was founded in 2006 by Adebayo Ogunlesi, an investment banker and lawyer of Nigerian descent. GIP invests in and manages assets in the energy, transportation, digital, water, and waste sectors. With over $100 billion in assets under management, GIP has grown to become the largest independent infrastructure manager in the world. In January 2024, Ogunlesi made headlines when he agreed to sell GIP to BlackRock, the largest asset manager in the world, for an astounding $12.5 billion. The deal is anticipated to close in the third quarter of 2024. Following this, a market-leading, multi-asset class infrastructure platform will be created, with a combined client AUM of over $150 billion.

In addition to its size and influence, Ogunlesi's success story is noteworthy for its lessons and ramifications for Africa and its diaspora. These are some important lessons he learned along his adventure.

Think big and diversify

After beginning his legal career, Ogunlesi joined the banking giant Credit Suisse and worked his way up to executive vice chairman and chief client officer. He exited the bank in 2006 to launch GIP, with the assistance of Credit Suisse and General Electric Co. He perceived a chance to make investments in infrastructure because he thought it was a solid, long-term asset class with the potential to produce substantial profits as well as social benefits.

Ogunlesi ventured into other industries and locations, not just the conventional finance industry. He expanded GIP's holdings into the power production, natural resources, and transportation industries. Edinburgh Airport, Gatwick Airport, Ports of Brisbane and Melbourne, East India Petroleum, Sydney Airport, and the Ruby Pipeline are a few of the noteworthy properties that GIP has invested in or purchased.

GIP has consistently and impressively performed throughout the years, demonstrating the success of Ogunlesi's vision and approach. A startling $60 billion of the company's assets under management are in its infrastructure equity funds, which GIP claims have produced a net internal rate of return of 17.5% since their founding.

Leverage your network and expertise

With the aid of his mentors, coworkers, and partners, Ogunlesi was able to succeed. He closed the agreement with BlackRock by using his connections and experience to develop and expand GIP.

Four other partners, each with their own set of abilities and expertise, joined Ogunlesi in co-founding GIP. They are former Credit Suisse global industrial group president Jon Bram, global energy group head Adebayo Ogunlesi, global power group head Matthew Harris, and former GE Infrastructure vice chairman William Woodburn.

Ogunlesi also kept up close ties with his previous clients and bosses, who helped him succeed in his pursuits. The fund was founded by Credit Suisse and GE, who contributed funds and credibility to GIP. Ogunlesi also sat on the boards of Goldman Sachs and Callaway Golf, among other organizations, where he garnered insights and relationships in numerous areas.

In addition, Ogunlesi gained support and direction from BlackRock chairman and CEO Larry Fink, who highlighted Ogunlesi's acumen and leadership in the deal announcement. Fink continued, "We have known and admired Bayo and the GIP team for a long time and have a shared vision for the future of infrastructure investing." He stated, "We believe bringing GIP and BlackRock together will deliver to clients the benefits of broader origination and business improvement capabilities."

Give back and inspire others

As well as being a prosperous businessman, Ogunlesi is a role model and a philanthropist. He has made numerous contributions to his neighborhood, his continent, and his alma mater.

Ogunlesi finished from King's College, Lagos, Oxford University, and Harvard Law School. In addition to serving as a trustee, fellow, or board member for these organizations, he has made kind donations to them. In addition, he has contributed to the Africa Center, the Metropolitan Museum of Art, and the NAACP Legal Defense and Educational Fund, among other cultural and educational institutions.

Promoting and developing Africa and its people is another of Ogunlesi's great passions. Seplat Petroleum, Africa Finance Corporation, and Dangote Cement are just a few of the African companies he has advised and invested in. Along with being a leader and trailblazer, he has mentored and inspired a large number of young Africans, particularly Nigerians.

A historic milestone for Africa and its diaspora, Ogunlesi's agreement with BlackRock represents more than just a personal accomplishment. It demonstrates that African businesspeople are able to thrive and compete at the top levels of international commerce, as well as to add value and have an influence on both others and themselves. A tribute to the strength of foresight, planning, connections, and altruism is Ogunlesi's tale. There should be celebration and emulation for this inspiring tale.