BlackRock is buying private credit manager HPS, the FT reports

Black Rock BLK has reached a handshake deal to buy private lending group HPS Investment Partners, the Financial Times reported on Wednesday.

The final valuation of the deal would be closer to $12 billion, a large premium on HPS’s post-IPO valuation of $10 billion, according to the report, citing two insiders familiar with the matter.

The two sides have agreed on the outlines of the deal and plan to announce the general terms after the US Thanksgiving holiday, according to the report, which cited four people familiar with the matter.

BlackRock declined to comment and HPS Investment did not immediately respond to a Reuters request for comment.

HPS Investment Partners is a global investment firm that manages assets in debt securities, liquid credit including leveraged syndicated loans, asset-based finance and real estate, according to its website they have Assets under management were approximately $117 billion as of June 2024.

BlackRock, the world’s largest asset manager with more than $10 trillion in assets under management, is trying to take advantage of investor demand (link) for alternative investments, from private equity to infrastructure .

In early July, BlackRock agreed to buy UK-based data company Preqin (link) for 2.55 billion pounds ($3.32 billion) in cash.