Private Credit Space Sees Major Shake-Up as BlackRock Acquires HPS Investment Partners
In a move that’s set to send shockwaves through the financial industry, BlackRock, the world’s largest asset manager, has announced its acquisition of HPS Investment Partners for a staggering $12 billion in stock. This strategic move marks a significant expansion of BlackRock’s presence in the highly coveted private credit space.
A Boom in Private Credit
The private credit space has been experiencing a remarkable surge in recent times, with comparable publicly traded companies such as Blue Owl Capital and Ares seeing impressive gains of 54.6% and 46%, respectively, so far this year. This growth has outpaced BlackRock’s own year-to-date gain of 25.7%.
Creating an Integrated Private Credit Franchise
The acquisition is expected to close in mid-2025 and will result in the creation of an integrated private credit franchise with approximately $220 billion in assets. HPS, which manages around $148 billion in assets, will bring its expertise to the table, allowing BlackRock to deliver seamless solutions that blend public and private credit.
A Strategic Play for BlackRock
This move is part of BlackRock’s broader strategy to grow its alternative assets business. Earlier this year, the company announced plans to acquire Global Infrastructure Partners and private market data provider Preqin for $12.5 billion and $3.2 billion, respectively. The HPS acquisition is expected to raise BlackRock’s private market AUM and management fees by 40% and roughly 35%, respectively.
A New Era in Private Credit
As the largest asset manager in the world, BlackRock’s acquisition of HPS Investment Partners marks a significant shift in the private credit landscape. With its expanded presence, BlackRock is poised to deliver innovative solutions that meet the evolving needs of its clients. As CEO Larry Fink noted, “We have always sought to position ourselves ahead of our clients’ needs. Together with the scale, capabilities, and expertise of the HPS team, BlackRock will deliver clients solutions that seamlessly blend public and private.”
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