BlackRock is shopping for credit score funding supervisor HPS Funding Companions in a inventory deal valued at about $12 billion, giving it extra methods to service its insurance coverage shoppers.
BlackRock mentioned Tuesday that the transaction contains fairness issued by a subsidiary, and that the fairness will be exchanged on a one-for-one foundation into BlackRock widespread inventory. The corporate mentioned the transaction creates an built-in personal credit score franchise with roughly $220 billion in consumer belongings.
HPS has roughly $148 billion in consumer belongings and is an impartial supplier of personal credit score for insurance coverage shoppers. BlackRock mentioned that the acquisition of HPS will place it to be a full-service, fiduciary supplier of public-private asset administration and know-how options for insurance coverage shoppers.
BlackRock and HPS will create a brand new personal financing options division.
“At this time marks an necessary milestone in our drive to grow to be the world’s main supplier of personal financing options,” HPS CEO Scott Kapnick mentioned in a press release. “Our partnership with BlackRock will additional strengthen our place on this quick rising however more and more aggressive market.”
HPS is one in all a number of acquisitions BlackRock has made this yr. In January the New York firm introduced that it was shopping for impartial infrastructure fund supervisor Global Infrastructure Partners in a cash-and-stock deal valued at greater than $12 billion. That transaction was accomplished in October.
BlackRock then introduced in June that it was shopping for personal markets knowledge supplier Preqin in an roughly $3.2 billion deal. The acquisition is focused to shut earlier than the top of the yr.
The transaction with HPS is predicted to shut mid-2025.
