BlackRock is set to acquire credit investment manager HPS Investment Partners in a deal valued at around $12 billion, expanding its capabilities to cater to its insurance clientele.
On Tuesday, BlackRock revealed that the transaction would involve equity issued through a subsidiary, which can be swapped on a one-for-one basis for BlackRock common stock. This acquisition is poised to create a unified private credit platform with client assets totaling nearly $220 billion.
HPS has around $148 billion in client assets and operates as an independent provider of private credit services focused on insurance clients. BlackRock indicated that gaining HPS will enable it to offer comprehensive fiduciary services for public-private asset management, in addition to technological solutions for its insurance partners.
With this acquisition, BlackRock and HPS will establish a new division dedicated to private financing solutions.
“This day marks a significant step in our mission to become the global leader in private financing solutions,” stated HPS CEO Scott Kapnick. “Our alliance with BlackRock will enhance our market position in a rapidly expanding yet increasingly competitive landscape.”
HPS is among several strategic acquisitions made by BlackRock this year. Back in January, the New York-based firm announced its intention to acquire the independent infrastructure fund manager Global Infrastructure Partners in a combined cash-and-stock deal exceeding $12 billion; this transaction was finalized in October.
In June, BlackRock also disclosed its plans to purchase private markets data provider Preqin for approximately $3.2 billion, with the deal anticipated to close by the end of the year.
The arrangement with HPS is expected to be finalized by mid-2025.
