BlackRock Expands Private Credit Business with $12 Billion HPS Investment Partners Acquisition
BlackRock Expands Private Credit Business with $12 Billion HPS Investment Partners Acquisition
Key Highlights:
BlackRock will acquire HPS Investment Partners for $12 billion in stock.
The deal is set to close by mid-2025 and will significantly boost BlackRock’s private credit offerings.
This transaction creates a private credit platform managing $220 billion in assets.
BlackRock, the world’s largest asset manager, announced plans to acquire HPS Investment Partners for $12 billion in stock, marking a major move to strengthen its position in the growing private credit market.
“We’ve always aimed to stay ahead of our clients’ needs. This partnership with HPS allows us to provide seamless solutions that combine public and private market opportunities,” said BlackRock CEO Larry Fink.
Private Credit Boom Fuels the Deal
The acquisition comes amid strong demand for private credit investments. Companies like Blue Owl Capital and Ares, both in the private credit space, have seen their stocks rise 54.6% and 46%, respectively, in 2024. In comparison, BlackRock’s shares have gained 25.7% this year.
HPS, which manages $148 billion in assets, will join forces with BlackRock to form an integrated private credit platform overseeing $220 billion. BlackRock itself manages $11.5 trillion in assets as of the third quarter.
Strategic Growth in Alternative Assets
The deal is part of BlackRock’s broader strategy to expand its alternative investment offerings. Earlier this year, the company announced acquisitions of Global Infrastructure Partners and Preqin, a private market data provider, for $12.5 billion and $3.2 billion, respectively.
Insiders revealed that HPS initially explored going public, catching BlackRock’s attention as it seeks to grow in private markets.
With this transaction, BlackRock expects its private market assets under management (AUM) and associated management fees to grow by 40% and 35%, respectively.
Closing Timeline and Market Impact
The acquisition is expected to close by mid-2025, solidifying BlackRock’s leadership in private credit—a sector gaining traction with institutional investors seeking higher returns in a low-yield environment.
This move underscores BlackRock’s commitment to diversifying its offerings and staying at the forefront of client needs in both public and private markets.
Key Highlights:
BlackRock will acquire HPS Investment Partners for $12 billion in stock.
The deal is set to close by mid-2025 and will significantly boost BlackRock’s private credit offerings.
This transaction creates a private credit platform managing $220 billion in assets.
BlackRock, the world’s largest asset manager, announced plans to acquire HPS Investment Partners for $12 billion in stock, marking a major move to strengthen its position in the growing private credit market.
“We’ve always aimed to stay ahead of our clients’ needs. This partnership with HPS allows us to provide seamless solutions that combine public and private market opportunities,” said BlackRock CEO Larry Fink.
Private Credit Boom Fuels the Deal
The acquisition comes amid strong demand for private credit investments. Companies like Blue Owl Capital and Ares, both in the private credit space, have seen their stocks rise 54.6% and 46%, respectively, in 2024. In comparison, BlackRock’s shares have gained 25.7% this year.
HPS, which manages $148 billion in assets, will join forces with BlackRock to form an integrated private credit platform overseeing $220 billion. BlackRock itself manages $11.5 trillion in assets as of the third quarter.
Strategic Growth in Alternative Assets
The deal is part of BlackRock’s broader strategy to expand its alternative investment offerings. Earlier this year, the company announced acquisitions of Global Infrastructure Partners and Preqin, a private market data provider, for $12.5 billion and $3.2 billion, respectively.
Insiders revealed that HPS initially explored going public, catching BlackRock’s attention as it seeks to grow in private markets.
With this transaction, BlackRock expects its private market assets under management (AUM) and associated management fees to grow by 40% and 35%, respectively.
Closing Timeline and Market Impact
The acquisition is expected to close by mid-2025, solidifying BlackRock’s leadership in private credit—a sector gaining traction with institutional investors seeking higher returns in a low-yield environment.
This move underscores BlackRock’s commitment to diversifying its offerings and staying at the forefront of client needs in both public and private markets.
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