BlackRock, Inc. has finalized its acquisition of HPS Investment Partners, marking a significant development in the financial sector. The integration aims to enhance BlackRock's capabilities in meeting the growing demand for private credit solutions.
The acquisition is expected to accelerate the convergence of public and private markets, allowing asset managers to align long-term capital with investors such as insurance companies, pensions, sovereign wealth funds, wealth managers, and individuals planning for retirement.
With HPS now part of BlackRock, the company is poised to offer integrated solutions at scale. This addition complements BlackRock’s existing $3 trillion public fixed income franchise. Rick Rieder leads the Fundamental Fixed Income business while Peter Gailliot heads the Financial Institutions Group.
To capitalize on this merger, BlackRock will establish Private Financing Solutions (PFS), combining market-leading private credit and other related businesses into a single platform. Scott Kapnick, Scot French, and Michael Patterson will lead PFS. Despite the integration, HPS’s flagship strategies will retain their branding under "HPS, a part of BlackRock."
Laurence D. Fink, Chairman and CEO of BlackRock, stated that this move positions them better to serve clients globally through their "One BlackRock culture." He emphasized that PFS would streamline client interactions by offering comprehensive solutions.
Scott Kapnick expressed enthusiasm about joining forces with BlackRock. He highlighted that navigating opportunities in private credit markets requires entrepreneurial drive and disciplined risk management—qualities that PFS aims to deliver.
Financial advisors involved in the transaction included Perella Weinberg Partners LP for BlackRock and J.P. Morgan Securities LLC for HPS. Legal counsel was provided by Skadden, Arps, Slate, Meagher & Flom LLP among others.
For further information about both firms’ operations and strategic directions post-acquisition, interested parties can visit their respective websites.