Private credit firm HPS Investment Partners is in discussions with potential buyers, including BlackRock, as its top executives consider a sale that could value the business at more than $10bn, according to a report by Bloomberg.
The report cites sources familiar with the matter as revealing that HPS, which has $117bn in assets under management as of June, is also evaluating an initial public offering (IPO) as part of its strategic options.
The firm, which emerged from a spin-out of JPMorgan, is seen as one of the few independent private credit managers that could attract large financial institutions looking to expand their foothold in the sector.
BlackRock, the world’s largest asset manager with $10.6tn under management, has been actively seeking acquisitions to strengthen its position in alternative investments, including private equity, private credit, and infrastructure, with CEO Larry Fink having identified those sectors as key growth areas because they command higher fees compared to BlackRock’s traditional index products.
Earlier this month, BlackRock. Which currently manages $85bn in private credit assets, completed a $12.5bn acquisition of Global Infrastructure Partners.
The talks between HPS and BlackRock are still in early stages, and it is uncertain whether they will lead to a deal, with the firm having reportedly also engaged with other potential partners as well.
