BlackRock has deal to buy private credit manager HPS, FT reports

(Reuters) – BlackRock (NYSE:BLK) has a handshake deal to buy private credit group HPS Investment Partners, the Financial Times reported on Wednesday.

The final deal value would be closer to $12 billion, which offers a significant premium over HPS’s post-IPO valuation of $10 billion, the report said, citing two sources familiar with the matter.

The two sides have agreed on the broad outline of the deal with an eye towards announcing general terms after the U.S. Thanksgiving holiday, the report added, citing four people familiar with the matter.

BlackRock declined to comment and HPS Investment did not immediately respond to a Reuters request for comment.

HPS Investment Partners is a global investment firm managing assets across debt, liquid credit including syndicated leveraged loans, asset-based finance and real estate, according to its website. It had about $117 billion of assets under management as of June 2024.

BlackRock, the world’s largest asset manager overseeing more than $10 trillion, is seeking to capitalize on a boom in investor demand for alternative assets, ranging from private equity to infrastructure.

Earlier in July, BlackRock agreed to buy UK-based data firm Preqin for 2.55 billion pounds ($3.32 billion) in cash.