(Reuters) – According to the Financial Times, BlackRock (NYSE:) has reached a handshake agreement to acquire HPS Investment Partners, a private credit group. The deal is expected to be valued at approximately $12 billion, representing a premium over HPS’s post-IPO valuation of $10 billion. Sources familiar with the matter revealed these details.
The agreement’s broad outline has been finalized by both parties, and they are looking to announce general terms after the U.S. Thanksgiving holiday. BlackRock declined to comment on the matter, while HPS Investment did not immediately respond to a request for comment from Reuters.
HPS Investment Partners is a globally recognized investment firm that manages assets in various sectors, including debt, liquid credit, asset-based finance, and real estate. As of June 2024, the firm had approximately $117 billion in assets under management.
BlackRock, the largest asset manager globally with assets exceeding $10 trillion, aims to leverage the increasing investor interest in alternative assets, such as private equity and infrastructure. In a separate deal earlier this year, BlackRock agreed to acquire UK-based data firm Preqin for 2.55 billion pounds ($3.32 billion) in cash.