BlackRock to Acquire HPS Investment Partners for $12 Billion in Stock
BlackRock, the world’s largest asset manager, announced Tuesday that it will acquire HPS Investment Partners for $12 billion in stock. The deal aims to grow BlackRock’s presence in the highly popular private credit space. The acquisition is expected to close in mid-2025.
The transaction will create an integrated private credit franchise with approximately $220 billion in assets, with HPS managing about $148 billion in assets and BlackRock overseeing $11.5 trillion as of the third quarter.
BlackRock CEO Larry Fink stated that the deal will enable the company to deliver clients solutions that seamlessly blend public and private investments. The acquisition comes during a boom for the private credit space, with comparable publicly traded companies such as Blue Owl Capital and Ares up 54.6% and 46%, respectively, for 2024.
HPS first sought to go public, which caught BlackRock’s attention as it looks to grow its alternative assets business. The deal is also expected to raise BlackRock’s private market AUM and management fees by 40% and roughly 35%, respectively.
