BlackRock is acquiring HPS Investment Partners, a leading private credit firm, in a deal expected to close in mid-2025. The transaction creates an integrated private credit franchise with approximately $220 billion in assets, according to BlackRock.
The acquisition comes during a boom in the private credit space, with comparable companies such as Blue Owl Capital and Ares experiencing significant gains of 54.6% and 46%, respectively, for 2024. In contrast, BlackRock’s year-to-date gain is at 25.7%.
HPS manages about $148 billion in assets, while BlackRock oversees a massive $11.5 trillion as of the third quarter. The deal is also expected to boost BlackRock’s private market assets under management (AUM) and management fees by approximately 40% and 35%, respectively.
The acquisition marks another strategic move for BlackRock to grow its presence in the alternative assets business, following recent deals including Global Infrastructure Partners and Preqin. CEO Larry Fink stated that the partnership will deliver clients solutions blending public and private markets seamlessly.
Source: https://www.cnbc.com/2024/12/03/blackrock-expanding-in-private-credit-buys-hps-investment-partners-for-12-billion.html