HPS Investment Partners Joins Forces with BlackRock for Integrated Market Solutions

Deal News | Dec 03, 2024 | HPS Investment Partners

HPS Investment Partners, a prominent global credit investment manager with $148 billion in client assets, has been acquired by BlackRock, one of the leading asset management firms. This strategic acquisition has resulted in the creation of an integrated private credit franchise, managing approximately $220 billion in client assets. As a result of the merger, BlackRock's private markets fee-paying assets under management and its management fees are projected to increase by 40% and 35%, respectively. The deal is designed to ensure leadership continuity and is structured with proceeds paid in BlackRock equity, aligning with shareholder interests. The leadership from HPS Investment Partners will spearhead a newly established business unit as part of the combined entity. HPS, known for its expertise across various credit strategies, including senior debt and asset-based finance, continues its legacy within this new framework.

Sectors

Finance
Private Equity

Geography

Global – Both HPS Investment Partners and BlackRock have a global presence, and the merger impacts client assets worldwide.

Industry

Finance – The article focuses on the merger between two major players in the financial sector: BlackRock, a leading asset management company, and HPS Investment Partners, a notable alternative investment firm.
Private Equity – HPS Investment Partners is described as a global, credit-focused alternative investment firm, which aligns with the private equity sector due to its management of various investment strategies.

Financials

$148 billion – Current assets under management by HPS Investment Partners prior to the acquisition.
$220 billion – Combined client assets after the merger between HPS and BlackRock.
40% and 35% – Projected increase in BlackRock’s private markets fee-paying assets under management and management fees, respectively.

Participants

Name	Role	Type	Description
HPS Investment Partners	Target	Company	A leading global credit investment manager, providing capital solutions and managing assets across various strategies.
BlackRock	Buyer	Company	One of the world's largest asset management firms, aiming to expand its integrated private credit franchise through the acquisition of HPS.