BlackRock Inc (NYSE:BLK) has unveiled a $12 billion deal to buy New York-based investment manager HPS.
HPS has $148 billion in client assets and is among those to dominate the private credit sector.
The deal marks BlackRock’s latest bid to expand its share in the alternative asset market and move beyond traditional investments such as equities and bonds.
Some $9.3 billion will be paid in BlackRock stock initially, before a further $3 billion worth of shares in five years based on performance targets, according to a press release on Tuesday.
“I am excited by what HPS and BlackRock can do together for our clients and look forward to welcoming [...] the entire HPS team to BlackRock,” chief executive Laurence Fink commented.
BlackRock’s alternative assets under management are set to be boosted to almost $600 billion following the takeover, against its total of $11.5 trillion.
This will see it further compete with the likes of KKR, Blackstone and Apollo in the alternative asset space and adds to a string of takeovers by BlackRock recently.
“We have always sought to position ourselves ahead of our clients’ needs,” Fink added.
“Together with the scale, capabilities, and expertise of the HPS team, BlackRock will deliver clients solutions that seamlessly blend public and private.”