BlackRock to Acquire $148 Billion AUM HPS for $12 Billion, Becoming Top Five Private Credit Manager

Dec 3, 2024, 03:30 PM

BlackRock Inc. has agreed to acquire HPS Investment Partners, a leading global credit investment manager with approximately $148 billion in assets under management, in an all-stock deal valued at approximately $12 billion. Announced on December 3, 2024, the acquisition will significantly enhance BlackRock's private credit franchise and strengthen its position in the booming private credit market, positioning the firm among the top five private credit managers globally. By integrating HPS's extensive private credit capabilities, BlackRock aims to offer integrated solutions and income offerings across public and private markets. This move reflects BlackRock's strategy to expand in the rapidly growing private credit sector, which it predicts will double in size, and comes as part of its broader push into alternative investments, with nearly $28 billion spent on acquisitions this year. BlackRock's Chairman and CEO, Larry Fink, stated that together with HPS, they are aiming to offer the best of public and private markets in a unified fashion. The acquisition further consolidates the private credit industry and underscores the firm's ambition in private capital as public markets lose their shine and ETF competition intensifies.