joining us right now you know first on CNBC interview is Black Rock CEO Larry fin uh as this news is just crossing the tape good morning to you good morning Andrew happy New Year happy year to Becky and to Joe let's talk about what's happening here there has been speculation for months that there would be a major transaction in the future of Black Rock a lot of people had speculated you would buy a private Equity Firm uh this is a very different deal you're it's sort of zigging where others may have been zagging yes um this is going to make you probably uh one of if not the largest infrastructure uh investors in the world and it'll put us in the top few um well thank you um let me be clear we were not looking at any private Equity firms we we believe the future uh in the private markets is going to be infrastructure as you think about Black Rock um over 65% of our clients are are our retirement assets um what can be a better asset than um long duration assets High coupon inflation protected uh and then you overlay um the needs of governments and companies I've been long advocating that deficits matter and the future of governments funding their deficits on their own balance sheet is going to become more and more difficult and we're in conversation with many governments of of doing more public private type of transactions we are seeing more and more corporations instead of selling divisions they're selling blocks of assets not sometimes 100% sometimes 50% um and going into partnership as they build out their infrastructure we all know the need uh of uh recalibrating our power grid as we digitize everything we all know that more and more countries are focusing on energy Independence and some of them are focused on decarbonization all across these Investments we're talking trillions of doll and so we believe the big macro Trend in the future is going to be much heavier Reliance on private Capital retirement assets to co-invest with companies and governments in infrastructure um we have had a a long relationship with GP bio the founder and I have been from the first Boston days we were part of the first Boston diaspora right uh we all left first Boston we were Partners together at first a and we've known each other and this came together really rather quickly we we we had a a dinner together in September and we saw the Merit of it we had our te key Partners together in October and we moved full you know very rapidly I should mention b g Lacy has been the lead director at Goldman Sachs yes and he's going to be stepping down as part of this that role so at the time of closing uh and right right after closing by will be joining Black Rock Sport and at the same time he will be standing down from the Goldman Sach sport board he he's been the lead director but he's been on the government sex board now for I think approximately 12 years and uh and I know he's uh sad to leave a great firm but I think he's very happy to be part of the new his new firm how does this change Black Rock um there was a transformational deal you did with bgi brought in I shares years ago that was a transformational transaction yes you have put this from what I was reading in that same kind of bucket that same kind of context well I would put it the same context when we bought uh bgi and I shares was part of it I shares had $290 billion today I shares is 3.5 trillion uh these are just long-term trends that we see uh long-term trends in how we see uh the markets are going to evolve much of this we've made a fundamental belief that the world's Capital markets and this is very good for CNBC that the world's Capital markets are going to become a larger and larger component of economic activity across country Ries across the globe um and as I said if we are going to really Elevate our infrastructure as a world and the need for stronger better airports power grids um infrastructure as an asset class is going to is must grow and we believe that we are seeing that and so we are making a large um uh statement that we believe in the private markets the future growth in infrastructure going to be faster than almost any other and the bet that you can grow this business I imagine by bringing on all the investors who've historically backed you before to put you in a place to compete against the brookfields of the world um our investors already have been notified they are really excited about this transaction um they see the merits uh combined Black Rock INF structure team and and the Gip team it we will now have over $150 billion an infrastructure um and we see more and more opportunity we're working right now with two or three major uh companies that are looking to uh restructure themselves and we're talking four or five billion dollars of equity needed to do these infrastructure deals we're in conversation with the government right now that they're looking to transform some of their power grids and so all of these things are requiring not a few hundred million but a few billion dollars so the need is going to be greater and the power of GP and black rock really allows us to be in the front of the of the P how should investors think about this this morning in terms of uh Alternatives how big a piece or small piece on a relative basis this is going to be to your overall earnings picture in the future what kind of multiple they want to apply to this kind of business relative to the ey shares business it's it's a complicated picture well it doubles our fee related revenues related to um uh our private markets it's it's going to put us over a billion and a half dollars which is a big block when we I mean it's still small to an1 18 plus billion dollar Revenue platform but it really is giving us a larger engine if you add what we're doing now in I shares I shares crossed over one and a half billion in revenues too so it is these platforms that that really in my in my mind identify the strength of black rock that were able to bring the totality of investment ideas with investment technology and this gives us a much bigger conversation Beyond Public public Securities public Equity public debt investment technology uh the utilization of ETS across all the Spectrum and then now being a a large player in the infrastructure private markets business