BlackRock to Acquire HPS Investment Partners

(Reuters) – Asset management giant BlackRock (NYSE:BLK) has emerged as the sole bidder in talks to acquire private credit firm HPS Investment Partners, as reported by Bloomberg News on Tuesday, citing sources familiar with the discussions.

The parties aim to reach an agreement by the end of this year. If they cannot agree on valuation, HPS may consider an initial public offering or a minority stake sale.

HPS is targeting a post-IPO valuation of $11 billion and intends to seek a premium above that figure in any sale.

BlackRock and HPS did not immediately respond to requests for comment from Reuters.

With over $10 trillion under management, BlackRock seeks to capitalize on the increasing investor demand for alternative assets, including private equity and infrastructure.

HPS Investment Partners is a global investment firm managing assets across various sectors, including debt, liquid credit (syndicated leveraged loans), asset-based finance, and real estate. As of June 2024, HPS had about $117 billion in assets under management.

Earlier in July, BlackRock agreed to acquire UK data firm Preqin for £2.55 billion ($3.32 billion) in cash.

In September, BlackRock's $12.5 billion deal for Global Infrastructure Partners received approval from the U.S. Federal Energy Regulatory Commission.

($1 = 0.7686 pounds)