BlackRock’s Barry Says Infrastructure Deals Offer No Quick Fix
(Bloomberg) -- Plans by the U.S. to bolster infrastructure projects will attract plenty of interest from investors but take time to get off the ground, according to Jim Barry, global head of BlackRock Inc.'s real assets business.
“If the United States gets its act together the capital will be there. Everybody will want to come and play,” Barry said in an interview on Bloomberg TV Tuesday. But he added: “In my experience it takes three to five years to mobilize any substantial program of privatization or public-private partnerships, if you have cohesive policy and effective administration.”
Read more: Blankfein Joins Dimon's Call for Bigger U.S. Infrastructure Push
BlackRock, known for its dominance in low-cost passive strategies, is expanding its infrastructure business as President Donald Trump pushes forward with a pledge to rebuild America's bridges, roads and airports. Trump is expected to detail plans this week to use $200 billion to attract four times that amount from states, cities and private investors. Trump earlier this week proposed spinning off the U.S. air-traffic control system.
BlackRock's plans are aimed at bringing in more fee revenue and meeting investor demand for assets less correlated with stocks and bonds. Rival firms, including Blackstone Group LP, are also taking advantage of increased appetite for the asset class by raising multibillion dollar funds. A record $63 billion flowed into unlisted infrastructure funds last year, according to data from Preqin Ltd.
BlackRock, the world's largest money manager, made its first move into real assets in 2011 by forging a partnership with renewable-energy infrastructure firm NTR Plc, which was run by Barry. This week the company said it purchased two First Reserve Corp. energy-infrastructure funds, which helped boost assets on the infrastructure platform to $15 billion, including committed capital.
His firm stands ready to deploy money, Barry said.
“What we are looking for is some insight and clarity around what the programs will look like in order to mobilize the capital,” he said.
Read more on Trump's air-traffic plan
--With assistance from David Gura
To contact the reporter on this story: Sabrina Willmer in Boston at swillmer2@bloomberg.net.
To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Alan Mirabella
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