BlackRock acquires HPS Investment Partners in $12 billion deal for private credit growth.

From Investing.com: 2024-12-03 15:41:02

BlackRock acquires HPS Investment Partners in a $12 billion all-stock deal to expand in private credit. Private credit market expected to grow to $2.6 trillion by 2029. BlackRock CEO Larry Fink sees private credit as a primary growth driver. HPS founded in 2007, now manages about $148 billion in assets.

BlackRock will pay roughly $9.4 billion in shares upon deal close and form a new private financing solutions business unit led by HPS team. Deal expected to close in mid-2025. Moody’s Ana Arsov sees the deal as advancing BlackRock’s private-market growth goals. BlackRock’s stock up 1.7% post-announcement.

BlackRock on an acquisition spree, spending $28 billion this year to integrate public and private markets. Recent acquisitions include Global Infrastructure Partners for $12.5 billion. BlackRock aiming to strengthen foothold in infrastructure and private markets. Potential for future acquisition in private equity market.

HPS deal to boost BlackRock’s private markets fee-paying assets by 40% and management fees by 35%. Private assets carry higher fees than ETFs. Apollo, Blackstone, and Ares manage more credit assets than BlackRock. Speculation about BlackRock CEO Fink stepping down, but he says he is not considering retirement. Fink believes private investments in infrastructure could boost U.S. economic growth.



Read more at Investing.com: BlackRock targets private credit growth with $12 billion HPS acquisition By Reuters