HPS talking to BlackRock about possible sale
HPS Investment Partners is in talks with BlackRock and others about a possible sale, weeks after the private credit manager was reported to be considering an IPO.
According to the Financial Times, HPS is seeking a sale which would value the business at more than $10bn (£7.65bn).
In September, it was reported that the company was mulling a public listing which would value it at a similar amount.
Last year, HPS confidentially filed paperwork with the US Securities and Exchange Commission in expectation of an IPO, but the firm now appears to be exploring alternative options.
Read more: HPS raises $21.1bn for private credit fund
HPS has more than $117bn in private credit assets under management, and has grown its business substantially in recent years. In May, HPS started waitlisting new investors in order to limit inflows into its corporate lending fund to manage a surge in demand.
The following month, the firm raised $21.1bn for its largest ever private credit fund, Specialty Loan Fund VI.
Read more: HPS raises $10bn for second Core Senior Lending Fund
Meanwhile, BlackRock has been making inroads into the private credit space as the sector attracts more attention from investors.
Last month, BlackRock launched a new unit – Global Direct Lending – with Rich Kushel, head of BlackRock’s portfolio management group, stating that “private credit is one of the firm’s top priorities.”
BlackRock is the world’s largest money manager with approximately $10.6tn in assets. It currently manages around $85bn in private credit assets.
BlackRock’s chief executive Larry Fink has previously said that private credit will be a “primary growth” driver, while the firm’s analysis has forecasted rapid growth in direct lending.
