BlackRock is buying credit investment manager HPS Investment Partners in an all-stock deal worth about $12 billion, giving the company more options to serve its insurance clients.
BlackRock said Tuesday that the transaction includes shares issued by a subsidiary, and that the shares can be exchanged for shares of BlackRock common stock on a one-for-one basis. The company said the transaction creates an integrated private lending franchise with approximately $220 billion in customer assets.
HPS has approximately $148 billion in customer assets and is an independent provider of private credit to insurance customers. BlackRock said the acquisition of HPS will position the company as a full-service, fiduciary provider of public-private asset management and technology solutions for insurance clients.
BlackRock and HPS will create a new private financing solutions division.
“Today marks an important milestone in our quest to become the world’s largest provider of private financing solutions,” Scott Kapnick, CEO of HPS, said in a statement. “Our partnership with BlackRock will further strengthen our position in this fast-growing but increasingly competitive market.”
HPS is one of several acquisitions BlackRock has made this year. In January, the New York company announced it would buy independent infrastructure fund manager Global Infrastructure Partners in a cash-and-stock deal valued at more than $12 billion. That transaction was completed in October.
BlackRock then announced in June that it would buy data provider Preqin on the private market in a deal worth about $3.2 billion. The intention is for the acquisition to be completed before the end of the year.
The transaction with HPS is expected to close in mid-2025.
