BlackRock, the world’s largest asset manager, announced on Tuesday its plans to acquire HPS Investment Partners for $12 billion in stock. This move is aimed at expanding BlackRock’s presence in the private credit sector, which has been experiencing significant growth in recent years.
In a statement, BlackRock CEO Larry Fink emphasized the importance of staying ahead of clients’ needs and delivering integrated solutions that combine both public and private markets. The acquisition of HPS will allow BlackRock to offer a more comprehensive range of investment options to its clients.
The transaction, expected to be finalized in mid-2025, comes at a time when private credit investments are gaining popularity. Companies like Blue Owl Capital and Ares, which are comparable to HPS, have seen impressive gains in 2024. BlackRock’s move to acquire HPS will create an integrated private credit franchise with approximately $220 billion in assets, with HPS managing around $148 billion in assets.
Sources revealed that HPS initially considered going public, which caught BlackRock’s attention as it looks to expand its alternative assets business. Earlier this year, BlackRock also announced acquisitions of Global Infrastructure Partners and Preqin for $12.5 billion and $3.2 billion, respectively.
The acquisition of HPS is expected to increase BlackRock’s private market assets under management (AUM) and management fees by 40% and approximately 35%, respectively. This strategic move will further solidify BlackRock’s position in the private credit space and enhance its offerings to clients.
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