BlackRock to Acquire HPS Investment Partners for $12 Billion, Expanding Private Credit Presence
BlackRock, the world’s largest asset manager, announced Tuesday that it will acquire HPS Investment Partners for $12 billion in stock, signaling a major expansion into the rapidly growing private credit market, CNBC reports.
The deal, which is expected to close by mid-2025, will create an integrated private credit franchise managing approximately $220 billion in assets.
HPS Investment Partners currently oversees about $148 billion in assets, while BlackRock manages a staggering $11.5 trillion as of the third quarter. BlackRock CEO Larry Fink emphasized the strategic importance of the acquisition, stating:
“Together with the scale, capabilities, and expertise of the HPS team, BlackRock will deliver clients solutions that seamlessly blend public and private investments.”
The private credit sector is booming, with comparable firms like Blue Owl Capital and Ares Management seeing significant gains of 54.6% and 46%, respectively, in 2024. BlackRock’s own stock has risen 25.7% year-to-date, underscoring the appeal of this lucrative market.
Sources indicate that HPS initially explored going public, attracting BlackRock’s interest as part of its broader push to expand in alternative assets. This acquisition follows BlackRock’s recent purchases of Global Infrastructure Partners and private market data provider Preqin for $12.5 billion and $3.2 billion, respectively.
The transaction is expected to boost BlackRock’s private market assets under management (AUM) by 40% and increase management fees by approximately 35%.
