BlackRock expanding in private credit, buys HPS Investment Partners for $12 billion

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The deal, which is expected to close in mid-2025, comes during a boom for the private credit space.

The transaction also creates"an integrated private credit franchise" with about $220 billion assets, per BlackRock. HPS manages about $148 billion in assets.said Tuesday it will acquire HPS Investment Partners for $12 billion in stock, as the world's largest asset manager looks to grow its presence in the highly popular private credit space."We have always sought to position ourselves ahead of our clients' needs.

Comparable publicly traded companies to HPS such asThe transaction also creates"an integrated private credit franchise" with about $220 billion assets, per BlackRock. HPS manages about $148 billion in assets. BlackRock oversees $11.5 trillion as of the third quarter. Sources told CNBC that HPS first sought to go public, which caught BlackRock's attention as it looks to grow its alternative assets business. BlackRock earlier this year announced it would acquire Global Infrastructure Partners and private market data provider Preqin for $12.5 billion and $3.2 billion, respectively.

The deal is also expected to raise BlackRock's private market AUM and management fees by 40% and roughly 35%, respectively.Stock futures are little changed after S&P 500 closes at a record

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