In a significant push into private credit, BlackRock has announced its acquisition of HPS Investment Partners for $12 billion in an all-stock deal. This strategic acquisition is expected to enhance BlackRock’s capabilities and offerings in private credit, an area that has seen substantial growth. The integration of HPS, known for its robust credit strategies and expertise, will significantly bolster BlackRock’s existing portfolio. Larry Fink, CEO of BlackRock, emphasized the strategic importance of this acquisition, stating, ‘This partnership will allow us to leverage HPS’s expertise and scale to offer more innovative credit solutions to our clients.’ HPS operates more than $60 billion in assets under management and has a strong reputation for providing customized credit strategies. According to data, private credit markets have significantly expanded over the last few years, with many investors showing increased interest due to the favorable risk-return profile. Analysts suggest that this acquisition not only strengthens BlackRock’s footprint in the private credit market but also aligns with its strategy to diversify and enhance its investment management capabilities. The deal is expected to close in the first half of 2025, pending regulatory approvals. BlackRock’s stock has shown resilience with a year-to-date performance up 18%, while HPS is anticipated to benefit from greater access to BlackRock’s vast distribution network and client base.
BlackRock Expands in Private Credit with $12 Billion Acquisition of HPS Investment Partners
