BlackRock moves closer to HPS acquisition

BlackRock is the only firm in active discussions about buying HPS Investment Partners, as acquisition talks reach an advanced stage.

According to Bloomberg, the two firms are hoping to reach an agreement by the end of this year.

Last month, it was reported that HPS was considering an IPO which would value the private credit manager at approximately $11bn (£8.48bn). It is believed that HPS could still proceed with either an IPO or a minority stake sale if a deal with BlackRock cannot be reached.

BlackRock managed $11.5tn by the end of the third quarter of this year. A HPS acquisition would see the asset manager’s alternatives portfolio valued at more than $500m.

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According to an analysis by Wells Fargo earlier this week, HPS could net approximately $12bn through a potential sale to BlackRock.

BlackRock has been expanding its alternatives business in recent months.

In September, the firm revamped its private credit business with the launch of a new division and a management shake-up. And at the start of October, BlackRock acquired infrastructure private markets investment platform Global Infrastructure Partners, in a deal worth $12.5bn. BlackRock is also in the process of buying private market data provider Preqin for an estimated $3bn.

HPS is one of the largest independent private credit managers on the market, with AUM of more than $100m.

In June, HPS raised a record $21.1bn for its latest private credit fund.

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