BlackRock has reached a preliminary agreement to acquire private credit manager HPS Investment Partners for approximately $12bn, which, if finalised, would represent a substantial premium over the firm’s estimated $10bn post-IPO valuation, according to a report by the Financial Times.
The report cites unnamed insiders familiar with the matter as stating that the broad terms of the agreement have been outlined, with an official announcement expected after the US Thanksgiving holiday. While the discussions appear advanced, sources close to the negotiation caution that specifics are still being finalised.
Both BlackRock and HPS Investment Partners have declined to comment on the report.
HPS Investment Partners, a global firm with approximately $117bn in assets under management as of June 2024, operates across various asset classes, including debt, liquid credit, asset-based finance, and real estate. It is recognised for its diversified strategies within the private credit sector, a market experiencing significant growth in recent years.
As the world’s largest asset manager, with over $10tn in assets under management, BlackRock is aggressively expanding its footprint in alternative investments, including private credit, private equity, and infrastructure.
This move follows BlackRock’s recent acquisition of UK-based data analytics firm Preqin in July for £2.55bn ($3.32bn), underscoring the firm’s commitment to diversifying its portfolio and enhancing its capabilities in alternative asset management.
