BlackRock is acquiring HPS Investment Partners, a leading global credit investment manager, for approximately $12 billion in an all-stock deal. The acquisition is expected to close in mid-2025.
By Darun Al Mac | Dec 03, 2024 Updated 01:33 p.m. ET
- HPS Investment Partners is a leading global credit investment manager that provides creative capital solutions across $148 billion in client assets
- This combination creates an integrated private credit franchise with ~$220 billion in client assets
- Expected to increase private markets fee-paying AUM and management fees by 40% and ~35%, respectively
- Transaction structured for leadership continuity and alignment with BlackRock’s shareholders, with proceeds paid in BlackRock equity
- HPS leadership team will lead a new, combined business unit
BlackRock is acquiring HPS Investment Partners, a leading global credit investment manager, for approximately $12 billion in an all-stock deal. The acquisition is expected to close in mid-2025.
This deal will significantly expand BlackRock’s presence in the private credit market, which has been growing rapidly in recent years. HPS manages approximately $148 billion in assets, and the acquisition will more than double BlackRock’s private credit assets to over $300 billion.
The deal is expected to be accretive to BlackRock’s earnings per share in the first full year after closing. It is also expected to be accretive to BlackRock’s return on equity.
BlackRock is the world’s largest asset manager, with over $10 trillion in assets under management. HPS is a leading global credit investment manager, with a strong track record of investing in private credit and other alternative assets.
The acquisition of HPS is part of BlackRock’s strategy to expand its presence in the private markets. BlackRock has been investing in private markets for many years, and the acquisition of HPS will allow the firm to offer clients a wider range of private market investment opportunities.
The deal is also expected to help BlackRock to better compete with other large asset managers, such as Vanguard and Fidelity, which are also expanding their presence in the private markets.
Overall, the acquisition of HPS is a positive development for BlackRock and its shareholders. It will allow the firm to expand its presence in the growing private credit market and offer clients a wider range of investment opportunities.
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