Key Takeaways
- • BlackRock agreed to acquire private credit manager HPS Investment Partners for about $12 billion in an all-stock transaction, announced Tuesday, December 3, 2024.
- • The deal would lift BlackRock's alternative assets under management by more than 25%, to nearly $600 billion.
- • The acquisition is projected to increase BlackRock's private markets fee-paying AUM by about 40% and its management fees by roughly 35%.
- • HPS management will lead a newly formed Private Financing Solutions business unit within BlackRock.
- • The transaction is subject to regulatory approval.
Summary
BlackRock, the world's largest asset manager, will buy HPS Investment Partners for about $12 billion in an all-stock deal, the companies said. The transaction positions BlackRock to deepen its presence in private credit, one of the fastest-growing segments of alternative investing. If completed, the acquisition would raise BlackRock's alternative assets to nearly $600 billion, an increase of more than 25%, according to reporting on the announcement.
The companies said the deal is expected to increase BlackRock's private markets fee-paying AUM by about 40% and its management fees by approximately 35%. Under the agreement, BlackRock and HPS will form a new private financing solutions business unit. HPS's management team, led by Kapnick, Patterson and French, will assume leadership of that unit.
The transaction remains subject to regulatory approval. Coverage of the announcement characterized the deal as a bet on continued institutional demand for private credit, with BlackRock expanding its alternatives franchise through acquisition rather than organic growth alone.
The companies said the deal is expected to increase BlackRock's private markets fee-paying AUM by about 40% and its management fees by approximately 35%. Under the agreement, BlackRock and HPS will form a new private financing solutions business unit. HPS's management team, led by Kapnick, Patterson and French, will assume leadership of that unit.
The transaction remains subject to regulatory approval. Coverage of the announcement characterized the deal as a bet on continued institutional demand for private credit, with BlackRock expanding its alternatives franchise through acquisition rather than organic growth alone.
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