How BlackRock is using nearly $28 billion of acquisitions to reinvent itself

From CNBC: 2025-02-19 06:00:01

BlackRock has been making major acquisitions, including a $12 billion deal for HPS Investment Partners and a $12.5 billion purchase of Global Infrastructure Partners. These acquisitions are expected to boost BlackRock’s asset accumulation and earnings power. The firm is adapting to the changing financial landscape to remain competitive.

BlackRock’s purchase of HPS Investment Partners will add $148 billion in assets to its private debt platform, expanding its presence in the private credit market. The growth in private credit funds has been significant in recent years, as tighter regulations on banks have created opportunities for alternative lending sources. BlackRock is positioning itself to capitalize on this trend.

Goldman Sachs and Wells Fargo are also making moves in the private credit space, with Goldman announcing a new division focused on corporate loans and larger deals. Wells Fargo has a partnership with Centerbridge Partners to provide direct lending to middle-market companies. Private credit is seen as a key growth area in finance by industry leaders.

BlackRock’s acquisition of Global Infrastructure Partners will add to its existing $50 billion in client infrastructure funds, reflecting the firm’s commitment to growth in this sector. Infrastructure is expected to be a fast-growing segment in private markets, driven by increasing demand for digital infrastructure and logistical hubs. BlackRock is positioning itself for future success in this area.

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