BlackRock has announced its agreement to acquire HPS Investment Partners for $12 billion, in an effort to expand its presence in the private investment sector. This move is part of BlackRock CEO Larry Fink's strategy to diversify the firm’s investment capabilities beyond traditional equities and bonds.
The acquisition is expected to enhance BlackRock's total alternative assets under management to nearly $600 billion, positioning it as one of the largest entities in this competitive arena. The private credit market has experienced significant growth in recent years, attracting capital from institutional investors. BlackRock's acquisition of HPS is aimed at strengthening its competitive edge in this sector and leveraging HPS's expertise and client relationships.
The integration of HPS with BlackRock's existing private credit unit will create a comprehensive private financing solutions business. The leadership team at HPS will play a key role in the combined entity, ensuring a smooth transition and maintaining the operational integrity of HPS's business model. BlackRock anticipates completing the acquisition by 2025, solidifying its position in both public and private markets.