BlackRock Poised for $12bn Deal to Acquire HPS
- Chapters Capital
- Nov 28, 2024
- 2 min read
Updated: Dec 2, 2024
28th November 2024
BlackRock, the world’s largest asset manager, is reportedly finalising a deal to acquire HPS Investment Partners, a prominent private credit group. According to the Financial Times, the deal could value HPS at as much as $12bn. It represents another significant acquisition in BlackRock’s effort to expand its alternative investment capabilities. The final agreement is expected to be announced soon.
HPS Investment Partners holds a majority stake in the advisory platform Nucleus and a minority stake in Canaccord Genuity Wealth Management UK. It has also provided debt funding to platform technology leader FNZ. As of June 2024, HPS manages $117bn in assets, making it a major player in private credit markets. The firm originated from JPMorgan Chase and underwent a management buyout in 2016.
This acquisition aligns with BlackRock's strategic focus on alternative investments, a sector in which it already manages $450bn in assets. Recent acquisitions by BlackRock, including a $12.5bn purchase of Global Infrastructure Partners and a £2.55bn acquisition of UK-based Preqin, highlight its ambition to dominate the alternative investment space. The deal also underscores the growing significance of private credit and infrastructure investments in global financial markets.
This potential acquisition illuminates the growing convergence between traditional asset management and private credit. Industry leaders like BlackRock are at the forefront of responding to the demand for diversification and growth. As the largest asset manager in the world, BlackRock's expansion into alternative investments strengthens its dominant position while catering to the increasing interest in private markets. For wealth managers and platforms supported by HPS, this deal offers access to improved resources and capabilities, highlighting the importance of strategic partnerships in a changing financial landscape.
At Chapters Capital, we specialise in financial planning and wealth management M&A and understand the importance of strategic acquisitions for growth. Whether you are considering a sale, merger, or expansion, contact one of our professional associates today for a confidential, no-obligation consultation.