Adrian Russell Tom Willetts
Media Relations Strategic Communications
BlackRock FTI Consulting
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BlackRock establishes a European Infrastructure Debt investment unit
London, Paris - 26 November 2012 - BlackRock has hired the team of Philippe Benaroya, Chris Wrenn and Gilles Lengaigne to launch a European Infrastructure Debt investment unit based in London. The move is in response to institutional client demand to channel capital into new build infrastructure projects and secondary loan investments as they search for increased yield in a low interest rate environment.
Philippe, Chris and Gilles have worked together as a team for more than 10 years, latterly at Blackstone/GSO. They add their aggregate 50 years of sector and credit expertise to BlackRock’s global capabilities in fixed income and 17-year international track-record in alternatives investing. BlackRock Alternative Investors (BAI), BlackRock’s global provider of alternative investment strategies, includes hedge funds, real estate, private equity and renewable power. BAI’s 400 investment professionals managed US$113 billion of client assets as at 30 September 2012. BlackRock’s more than 400 fixed income professionals provide extensive global coverage of the fixed income markets. At 30 September 2012 BlackRock managed approximately $1.2 trillion of fixed income assets.
European Infrastructure Debt will focus initially on the needs of financial investors such as insurance companies served by BlackRock’s Financial Institutions Group. The team will help them review opportunities to invest in investment grade infrastructure debt assets in sectors such as transportation, social infrastructure and regulated utilities. Infrastructure debt is a natural complement to insurers’ fixed income portfolios, as it offers a cash yield, attractive liquidity premium, and low correlation to other asset classes.
Matthew Botein, Head of BlackRock Alternative Investors (BAI), said: “Investors are looking for increased yield, and to exploit new investment opportunities resulting from global deleveraging. Alternatives debt financing is a compelling proposition for investors, especially when offered alongside BlackRock’s existing global fixed income, alternative, equity and distribution capabilities.”
He added: “We expect to see a continuation in the robust growth in the infrastructure market. The OECD estimate market size at US$3 trillion by 2018 and $50 trillion by 2030, and alternative investments have doubled as a proportion of the institutional investment market in the last seven years.”
Philippe Benaroya joins from Blackstone/GSO as a Managing Director and Co-Head of European Infrastructure Debt. He has 18 years of infrastructure and project finance experience, including membership of the International Infrastructure Committee at insurer Financial Security Assurance.
Chris Wrenn has worked in infrastructure and structured finance for over 25 years and joins BlackRock as a Managing Director and Co-Head of European Infrastructure Debt. He spent 12 years with Financial Security Assurance, engaged primarily with financing infrastructure. Chris also held positions with UBS, MBIA-Ambac International and Blackstone/GSO.
Gilles Lengaigne has 10 years’ experience in structured and infrastructure finance and joins BlackRock as a Director in European Infrastructure Debt. Prior to joining BlackRock, Gilles was with Blackstone/GSO Capital Partners where he was a Principal of the Infrastructure Debt group.
David Lomas, Head of BlackRock's Global Financial Institutions Group, said: “This new platform is the right service at the right time. Solvency II is proving a major catalyst for insurers in this new world of market volatility and low interest rates as they search for alternative sources of income to meet their liabilities. Research undertaken by BlackRock earlier this year (* see notes to editors) suggests insurers may look to increase their allocation towards alternative asset classes to achieve this, the characteristics of infrastructure debt make it an ideal strategy to help them in this search for diversified income.”
Matt Botein concluded: “Hiring this team is an exciting and significant development which helps us develop this burgeoning market and adds a first-mover advantage to BlackRock’s current service provision in Europe. We are delighted to combine Philippe, Chris and Gilles’ expertise in this sector with the global capabilities and reach of BlackRock.”
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Biographical information
Philippe Benaroya
Philippe is a Managing Director of BlackRock and co-head of European Infrastructure Debt. He has 18 years of infrastructure and project finance experience. Philippe’s sectorial expertise includes transportation, PPP/Concessions and utilities.
Between 2011 and 2012, he worked as a Managing Director and co-head of the Infrastructure Debt group at Harbourmaster renamed Blackstone/GSO European Debt Fund Management after the acquisition by Blackstone in January 2012.
Between 2000 and 2009, he worked at Financial Security Assurance (FSA), a monoline company, where he was a member of the International Infrastructure Committee. He was responsible for FSA’s infrastructure finance activity in Continental Europe (except Southern Europe). He pioneered the development of monoline financings for infrastructure in Europe. Philippe led the origination and closing of landmark transactions.
Prior to FSA, Philippe worked for two years within the project finance advisory team of Schroders. From 1994 to 1997, Philippe was at Caisses d’Epargne (French savings banks) where he worked for three years as an analyst in the project and structured finance department.
Philippe began his career as an auditor at the Paris office of Arthur Andersen. Philippe graduated from the Ecole Nationale des Ponts et Chaussées. He is a native French speaker and fluent in English.
Chris Wrenn
Chris has worked in infrastructure and structured finance for over 25 years. He started his career at Swiss Bank Corporation where he trained as a credit analyst. He then spent 12 years with Financial Security Assurance, a leading financial guarantee company (or monoline insurer), engaged primarily with financing infrastructure. During this period Chris was involved in financing several landmark transactions including debt financings in the UK, Continental Europe and Australia for transport, hospitals, utilities, education and social housing.
Chris has spent the last three years developing a framework to broaden investment by institutional investors in infrastructure debt. He joined Blackrock in November 2012 as Managing Director and Co-head of Blackrock’s Infrastructure Debt Platform. Chris has also held positions within the Corporate Finance division of UBS, London, at MBIA-Ambac International, New York and London and at Blackstone/GSO in Dublin.
He holds a BSc from The City University, London and an MBA from the Cass Business School, London
Gilles Lengaigne
Gilles has 10 years of experience in structured and infrastructure finance and joins BlackRock as a Director in European Infrastructure Debt group. Prior to joining BlackRock, Gilles was with Blackstone / GSO Capital Partners where he was a Principal of the Infrastructure Debt group.
Gilles worked for Financial Security Assurance where his responsibilities included the origination, structuring and credit analysis of debt financing transactions. Before joining the New York office of FSA in 2008, Gilles was based in London and Paris where he was covering projects and sponsors in Continental Europe. Gilles started his career at Société Générale Corporate & Investment Bank within the project finance division based in London.
He holds a Master in Finance from the French business school EM Lyon and is a native French speaker, fluent in English and with working knowledge of Spanish.
Notes to editors
* Survey conducted by the Economist Intelligence Unit on behalf of BlackRock examining the impact of Solvency II on the asset allocation and investment strategy of insurers with operations in Europe. The research was conducted in October and November 2011 of over 220 respondents from insurers in 18 countries, as well as eight in-depth interviews with insurers, regulators and trade bodies.
About BlackRock
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