The largest multinational investment company BlackRock Inc. is actively negotiating the acquisition of the credit company HPS Investment Partners. This is reported in a press release from BlackRock.
The negotiators expect to reach an agreement by the end of 2024. At the same time, HPS may change its decision and stop at holding an IPO or selling a minority stake if the parties cannot agree on the value of the transaction.
In the event of an IPO, HPS expects a total asset value of $11 billion, while the company will strive for a higher valuation as part of the proposed sale.
The proposed deal is in line with BlackRock's strategy to expand its presence in the private lending sector, which is becoming increasingly in demand by pension funds, insurers, sovereign wealth funds and wealthy retail customers and could grow to $20-40 trillion in the near future. After the closing of the proposed transaction, the value of BlackRock's alternative assets will amount to $500 billion.
The acquisition of HPS will be the second acquisition of assets in the alternative management sector within 10 months. Earlier, BlackRock completed the acquisition of Global Infrastructure Partners for $12.5 billion, becoming the second largest company in the infrastructure assets sector. In addition, BlackRock is negotiating the buyout of Preqin Ltd. for 2.55 billion pounds ($3.3 billion).
HPS is one of the largest independent asset management companies in the private lending market. The company has assets worth $100 billion under management. In 2016, HPS bought out its stake from JPMorgan Chase & Co. for $1 billion as part of a complex deal. The headquarters is located in New York (USA).
BlackRock, Inc. is an American international investment company headquartered in New York (USA). The company offers index funds and funds with active investment management to its clients. Index funds invest in securities included in stock indexes. BlackRock manages $11.5 trillion in assets. The company was originally part of the Blackstone Group.
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