BlackRock Acquires Private Credit Manager HPS for $12 Billion | Global News Avenue

BlackRock (black) has agreed to acquire private credit firm HPS Investment Partners in a deal that values ​​the company at about $12 billion, continuing BlackRock’s push into the growing industry.

Through the transaction, HPS executives and employees will receive equity in the BlackRock subsidiary, which is exchangeable for approximately 12.1 million BlackRock shares. Upon closing, 75% of the equity will be paid out, with the remaining 25% and an additional bonus pool to be paid out over the next five years, subject to closing conditions and financial performance milestones.

Previously, BlackRock CEO Larry Fink prioritizes expansion into the industry. The company previously acquired Global Infrastructure Partners (GIP) and Preqin, a private market data company.

HPS manages about $150 billion in assets and will increase BlackRock’s “alternative asset” pool to about $600 billion, bringing it closer to private market rivals such as KKR and Apollo Global Management. wall street journal.

“I think the biggest growth vector for private credit over the next decade is expanding our focus from non-investment grade to investment grade,” said Michael Patterson, co-founder of HPS. Magazine. “The industry is changing rapidly.”

BlackRock said it expects the deal to close by the middle of next year.

BlackRock shares were little changed Tuesday morning at about $1,025, having risen about 26% since the beginning of the year.