BlackRock Inc. is said to be nearing the completion of a deal to purchase HPS Investment Partners, a move that would greatly enhance its position in the private credit sector.

The deal, which could be announced in the coming week, is expected to value HPS at $12 billion or more, according to sources familiar with the negotiations.

The acquisition will be funded through a combination of cash and stock, representing a strategic expansion for BlackRock as it seeks to strengthen its presence in alternative assets.

This development highlights the increasing interest in private credit as institutional investors look to diversify their portfolios in response to changing market conditions.