BlackRock is buying credit investment manager HPS Investment Partners in an all-stock deal valued at about $12 billion, giving it more ways to serve its insurance clients.
BlackRock said Tuesday that the transaction includes shares issued by a subsidiary, and that the shares can be exchanged on a one-for-one basis for BlackRock common stock. The company said the transaction creates an integrated private credit franchise with approximately $220 billion in client 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 it 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 effort to become the world’s leading provider of private financing solutions,” HPS CEO Scott Kapnick 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 private markets data provider Preqin in a roughly $3.2 billion deal. The acquisition is expected to close before the end of the year.
The transaction with HPS is expected to close in mid-2025.