BlackRock intends to acquire HPS Investments for around USD12B
Date
12/4/2024 1:55:42 AM
(MENAFN) BlackRock Inc. has announced its intention to acquire HPS Investments for approximately USD12 billion, as the world’s largest asset manager seeks to strengthen its presence in the private credit market. This Acquisition marks a significant move into a growing sector and is expected to be finalized by mid-2025. Larry Fink, CEO of BlackRock, expressed enthusiasm about the future of private credit, noting that the sector holds great potential for the firm’s growth.
The private credit market has seen substantial growth in recent years, and BlackRock is betting on its continued expansion. The market is projected to increase from USD1.5 trillion at the end of 2023 to around USD2.6 trillion by 2029, according to data from Preqin. This represents a significant leap from just USD41 billion at the start of the century, reflecting the increasing demand for private credit solutions.
This acquisition comes at a time when private credit is becoming an increasingly attractive investment opportunity for large asset managers like BlackRock. The firm’s entry into the market is expected to enhance its portfolio by diversifying its offerings and tapping into a more lucrative segment. The deal will allow BlackRock to capitalize on the growing demand for non-bank lending options.
As the private credit market continues to expand, BlackRock aims to leverage its expertise and resources to tap into this lucrative sector, further cementing its position as a leader in the global asset management industry. The acquisition of HPS Investments will provide the firm with a strong foothold in this growing market.
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