BlackRock, the world's largest asset manager with a market capitalization of $158 billion, has signed a definitive agreement to acquire Hps Investment Partners, a credit investment manager with approximately $148 billion in assets. The value of theoperation is estimated at 12 billion dollars, paid entirely in BlackRock shares. The acquisition represents a new step for the company led by Laurence Fink inexpand its presence in the private credit sector and in integrating public and private income solutions.
BlackRock and Hps, a perfect integration
The acquisition Strengthens BlackRock's Capabilities in the private credit market and enriches its portfolio of activities, bringing the total assets under management (AUM) to approximately $220 billion. The merger of BlackRock and HPS will create a new business unit specializing in private financing solutions, which will be led by key figures such as Scott Kapnick, Scot French and Michael Patterson, all from HPS. The integration also includes the creation of diversified financial solutions, including senior and junior credit, asset-based financing, CLO and direct lending.
“I am excited about what HPS and BlackRock can do together for our clients and look forward to welcoming Scott Kapnick, Scot French and Michael Patterson, along with the entire HPS team, to BlackRock,” said Laurence Fink, CEO of BlackRock “We have always sought to position ourselves above the needs of our clients. Together with the scale, capabilities and experience of the HPS team, BlackRock will provide clients with solutions that seamlessly merge public and private.”
Closing in 2025, payment in five years
The agreement, which should be concluded by mid-2025, provides that part of the consideration is deferred for about five years, while a portion will be paid at closing. This structure will allow BlackRock to manage acquisition strategically, ensuring continuity of Hps' leadership and facilitating the integration of its skills with those of BlackRock. The operation is still subject to regulatory approvals and other closing conditions.
The private debt market
With this acquisition, BlackRock aims to exploit the strong potential of growth of the private debt market, which is expected to double in the next few years, reaching $4,5 trillion by 2030. The move is part of a broader strategy to address growing demand for private equity and debt financing solutions, offering clients greater liquidity, yield and diversification.
BlackRock's Growth
Meanwhile, BlackRock continued to record excellent financial results, with a record increase in net inflows and an increase in revenues and operating income. With over 11,5 trillion dollars in assets under management, the company further consolidates its dominant position in the global asset management sector.
The acquisition of HPS Investment Partners is just the latest step in a series of strategic moves that continue to drive BlackRock toward sustainable, long-term growth, positioning it as a central player in the global financial landscape.
