The acquisition will be fully compensated in BlackRock shares, which will be issued as "SubCo Units" by a subsidiary of BlackRock, exchangeable on a one-for-one basis for BlackRock common stock.
HPS Investment Partners is one of the largest global investment managers, with approximately $148 billion in assets under management as of September 2024. The firm focuses on offering a comprehensive suite of fixed income and alternative credit funds to its clients, as stated by the asset manager.
Larry Fink, CEO of BlackRock, noted that HPS was the "exclusive" company in the rapidly expanding private credit sector that BlackRock considered for acquisition. Following the acquisition, BlackRock is positioned to become one of the top five private credit firms, with approximately $220 billion in assets under management. Additionally, this acquisition provides significant growth opportunities, particularly in the areas of insurance clients and investment-grade private debt.
