BlackRock Inc (NYSE:BLK) has agreed to acquire HPS Investment Partners in a $12 billion deal, marking a significant expansion into private credit markets.
The acquisition includes $9.3 billion in BlackRock stock at closing and an additional $3 billion in shares contingent on HPS achieving future financial targets.
HPS, a key player in private credit with $148 billion in assets under management, specialises in corporate lending outside traditional banking.
The world's largest fund manager plans to merge HPS with its private credit division, forming a combined business targeting insurance and institutional clients, sectors central to its strategy.
This move follows BlackRock’s recent acquisitions of Global Infrastructure Partners and private markets data group Preqin, further diversifying its portfolio into alternative investments.