Andrew Ross Sorkin speaks with BlackRock CEO Larry Fink at the New York Times Dealbook Summit held at the Jazz at Lincoln Center’s Appellate Room on November 30, 2022 in New York City. Have a conversation.
Michael M. Santiago | Getty Images
BlackRock announced Tuesday that it will acquire HPS Investment Partners, the world’s largest asset manager, for $12 billion in stock. The company is looking to expand its presence in the highly popular private credit sector.
“We have always sought to position ourselves to stay ahead of our customers’ needs,” CEO Larry Fink said in a statement. “Combined with the scale, capabilities and expertise of the HPS team, BlackRock “We will provide our customers with a seamlessly integrated solution.”
The deal is expected to close in mid-2025 and comes amid a boom in the private credit sector. Publicly traded comparable companies to HPS, such as Blue Owl Capital and Ares, are up 54.6% and 46%, respectively, in 2024. These gains are significantly higher than BlackRock’s year-to-date gain of 25.7%.
BlackRock said the deal would also create an “integrated private credit franchise” with approximately $220 billion in assets. HPS manages approximately $148 billion in assets. BlackRock oversees $11.5 trillion as of the third quarter.
HPS is aiming to go public first and has attracted the attention of BlackRock, which is looking to grow its alternative assets business, people familiar with the matter told CNBC. BlackRock announced earlier this year that it would acquire Global Infrastructure Partners and private market data provider Preqin for $12.5 billion and $3.2 billion, respectively.
The transaction is expected to increase BlackRock’s private markets assets under management and management fees by 40% and approximately 35%, respectively.
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