BlackRock, a prominent investment management firm, has announced its agreement to acquire HPS Investment Partners for approximately $12 billion. The acquisition is structured with the entire consideration paid in BlackRock equity. This strategic move aims to integrate HPS's extensive credit investment expertise into BlackRock's existing operations, thereby creating a private credit franchise managing around $220 billion in client assets.
Laurence D. Fink, BlackRock Chairman and CEO, expressed enthusiasm about the partnership. "I am excited by 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," he stated.
The acquisition is expected to bolster BlackRock’s capabilities in providing both public and private income solutions through an integrated platform that combines senior and junior credit solutions. It is anticipated that this transaction will increase private markets fee-paying AUM by 40% and management fees by approximately 35%.
HPS CEO Scott Kapnick commented on the development: "Today marks an important milestone in our drive to become the world‘s leading provider of private financing solutions." He emphasized that their collaboration with BlackRock would enhance their market position.
Founded in 2007, HPS has grown into a significant global credit investment manager with a broad range of capabilities across the capital structure. The company’s founders and long-term Governing Partners will continue to lead it.
The deal awaits regulatory approval and is projected to close by mid-2025. Financial advisors for this transaction include Perella Weinberg Partners LP for BlackRock and J.P. Morgan Securities LLC for HPS.