BlackRock is to strengthen its position in the growing private credit market with the acquisition of HPS Investment Partners, a global credit investment manager with $148 billion in client assets.
BlackRock, the world’s largest money manager with over $11.5 trillion of assets, has announced an agreement to acquire HPS Investment Partners, a global credit investment manager, for approximately $12 billion, paid in equity.
This move will enable BlackRock to integrate HPS’s expertise with its public fixed-income business to create comprehensive public and private portfolio solutions. The collaboration aims to address the increasing demand for private capital, driven by the need for diversified and long-term income strategies. The deal includes the creation of a new private financing solutions business, led by key HPS executives, and offers a broad range of services, from direct lending to real estate finance.
BlackRock plans to issue 12.1 million exchangeable equity units to HPS as part of the acquisition deal, with additional performance-based incentives distributed over five years. Subject to regulatory approval, the transaction is expected to close by mid-2025, expanding BlackRock’s influence in private markets and simultaneously advancing its capital management and growth strategies.
BlackRock is one of the world’s largest investment management firms, specializing in a wide range of financial services including asset management, risk management, and advisory for institutional and retail clients. It manages trillions of dollars in assets across various investment classes, including equities, fixed income, and alternatives like private credit and infrastructure.
HPS, established in 2007, is a global credit investment manager with expertise across the capital structure. It has built a strong reputation through its ability to identify and execute high-value investments, becoming one of the largest independent private credit platforms. Leveraging a robust and adaptable capital base, HPS offers customized financing solutions to companies through both sponsor and non-sponsor channels. Its differentiated origination platform and proven track record drive its success in providing innovative credit solutions globally.
HPS’s capabilities align with BlackRock’s mission to enhance offerings for its clients like insurers, pensions, and sovereign funds. The transaction will also increase BlackRock’s private market fee-paying assets under management and enhance earnings from its expanded platform.
