BlackRock strikes $12bn HPS acquisition

February 2025 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

February 2025 Issue

In a deal that sees it target private credit growth, US multinational investment company BlackRock is to purchase fellow US global investment firm HPS Investment Partners for approximately $12bn.

Under the terms of the definitive agreement, BlackRock will pay roughly 9.2 million shares upon the closure of the deal. Nearly 2.9 million shares will be paid in about five years, subject to certain conditions.

The transaction will bring together BlackRock’s strong corporate and asset owner relationships with HPS’s diversified origination and capital flexibility. The combined private credit franchise will work side by side with BlackRock’s $3 trillion public fixed income business to provide both public and private income solutions for clients across their whole portfolios.

“I am excited by what HPS and BlackRock can do together for our clients and look forward to welcoming the entire HPS team to BlackRock,” said Laurence D. Fink, chairman and chief executive of Blackrock. “Together with the scale, capabilities and expertise of the HPS team, BlackRock will deliver clients solutions that seamlessly blend public and private.”

Founded in 1988, Blackrock manages nearly $90bn in private debt client assets across sponsor- and non-sponsor-led core middle market direct lending in US, European and Asian markets, venture lending, investment grade private placements, and real estate debt, as well as dedicated private infrastructure debt.

The addition of HPS will position BlackRock to connect companies of all sizes, from small and medium-sized businesses to large corporations, with financing for investments that support economic growth and job creation.

“This deal marks an important milestone in our drive to become the world’s leading provider of private financing solutions,” said Scott Kapnick, chief executive of HPS. “Our partnership with BlackRock will further strengthen our position in this fast growing but increasingly competitive market.

“The combination of HPS’s proven culture of investment discipline with BlackRock’s global reach will allow us to seize new opportunities for our investors and employees and set us up for continued success for the next decade and beyond,” he added.

Founded in 2007, HPS is a leading global credit investment manager with capabilities across the capital structure. HPS has continually demonstrated its ability to identify, structure and execute compelling investments, and its extensive investing expertise coupled with the firm’s strong track record has fuelled its growth into one of the largest independent private credit platforms.

The transaction is expected to close in mid-2025 subject to regulatory approvals and customary closing conditions.

Serving as financial advisers to BlackRock are Perella Weinberg Partners LP and Morgan Stanley & Co. LLC, with Skadden, Arps, Slate, Meagher & Flom LLP and Clifford Chance LLP acting as legal counsel.

Serving as lead financial adviser to HPS is JP Morgan Securities LLC, with Goldman Sachs & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., BNP Paribas and RBC Capital Markets acting as co-financial advisers. Fried, Frank, Harris, Shriver & Jacobson LLP is serving as legal counsel.

“With HPS, we are expanding our private markets capabilities across our comprehensive global platform,” concluded Mr Fink. “These capabilities, together with our global reach, deep relationships and powerful technology, differentiate our ability to serve clients.”

Fraser Tennant