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BlackRock Acquires HPS in $12 Billion Deal, Boosting Private Credit Market with $148 Billion Assets

Dec 3, 2024, 11:51 AM

BlackRock, the world's largest asset manager, has agreed to acquire HPS Investment Partners, a leading global credit investment manager, in an all-stock deal valued at approximately $12 billion. HPS specializes in private credit, a rapidly growing segment of the financial market that involves lending directly to businesses, bypassing traditional banks. The acquisition will add HPS's $148 billion in client assets to BlackRock's portfolio and strengthen its position in private credit markets, which is considered one of Wall Street's hottest markets. BlackRock aims to integrate public and private market solutions through this deal, with CEO Larry Fink stating that the combined entity will rank among the top five in private credit globally. The move reflects BlackRock's confidence in the doubling of the private-credit market.