In a move that will further bolster its private credit capabilities, asset management giant BlackRock is reportedly set to acquire HPS Investment Partners for approximately $12 billion. The deal, which is expected to be announced in the coming days, would mark one of the largest acquisitions in the private credit industry’s history.
The acquisition of HPS is a strategic move for BlackRock, which has been actively expanding its private credit platform in recent years. HPS, with over $60 billion in assets under management, is a leading provider of high-yield and distressed debt investments. The acquisition would allow BlackRock to significantly enhance its offerings in these areas and provide its clients with broader access to private credit opportunities.
Moreover, the deal would also bring HPS’s experienced investment team under BlackRock’s umbrella. HPS’s team has a strong track record of generating attractive returns for its investors, and their expertise would further enhance BlackRock’s investment capabilities.
The private credit industry has witnessed significant growth in recent years as investors seek alternative sources of yield. The acquisition of HPS positions BlackRock to capitalize on this growing market and meet the increasing demand for private credit solutions.
According to the report, BlackRock will pay approximately $12 billion for HPS. The deal is expected to close in the second half of 2023, subject to regulatory approvals and customary closing conditions.
The acquisition of HPS by BlackRock has been met with positive reactions from industry experts. Analysts believe that the deal will create a formidable force in the private credit market and could accelerate the growth of BlackRock’s credit platform.
The acquisition of HPS Investment Partners by BlackRock is a significant event that will reshape the private credit landscape. The deal highlights the growing importance of private credit and positions BlackRock as a leading player in this rapidly expanding market. Investors can expect to see increased opportunities and enhanced investment capabilities from BlackRock in the years to come.
