BlackRock (BLK) buys HPS for $12 billion in private markets
BlackRock, the asset management giant, announced the acquisition of HPS Investment Partners, a private credit manager, in a deal valued at $12 billion. This strategic move strengthens its position in the private credit market and marks another important step in its expansion into private markets, a sector that includes companies not listed on public exchanges.
HPS, headquartered in New York, manages approximately $148 billion in client assets. This all-stock acquisition reflects BlackRock's ambition to anticipate its clients' needs and provide solutions that seamlessly integrate public and private markets. According to CEO Larry Fink,
“Together with the scale, capabilities and experience of the HPS team, BlackRock will offer clients solutions that seamlessly combine public and private markets.”
BlackRock reinforces its presence in private markets
This purchase is not BlackRock's first bet in the sector. In June, it acquired British data company Preqin for $3.2 billion and completed the purchase of private equity firm Global Infrastructure Partners in October. These moves highlight the growing importance of private markets in BlackRock's strategy, a sector where companies not listed on public exchanges are traded.
The agreement with HPS comes at a key time. BlackRock shares rose 0.3% before the market opened on Tuesday and are expected to grow 26% in 2024, although slightly below the performance of the S&P 500, which has gained 27% in the same period.
The impact of hps on blackrock strategy
With this acquisition, Black Rock not only expands its offering, but reinforces its position as a leader in comprehensive solutions for clients seeking exposure to both public and private markets. HPS, known for its strong track record in private credit management, will complement BlackRock's ability to provide diversified, high-value-added services.
BlackRock continues to demonstrate its commitment to innovation and strategic growth in a highly competitive market. Fink's vision of anticipating industry trends positions the firm as a key player in the future of asset management.
