BlackRock has recently accelerated its expansion by reaching an acquisition agreement with private credit management company HPS to build an &#34;alternative investment empire.&#34;
According to media reports on Thursday, sources revealed that BlackRock has reached a preliminary acquisition agreement with HPS Investment Partners, which is expected to be officially announced after the Thanksgiving holiday. The transaction price could be as high as $12 billion, far exceeding HPS's previous planned IPO valuation of $10 billion.
Founded in 2007, HPS is one of Wall Street's largest private credit groups, currently managing nearly $150 billion in assets and holding a significant position in the private credit sector. This acquisition will significantly enhance BlackRock's competitiveness in the private credit market, allowing it to better compete with rivals such as Ares, Apollo, and Blackstone.
BlackRock's offensive does not stop here, as it has already initiated a series of acquisitions.
In October of this year, the company acquired infrastructure investment firm Global Infrastructure Partners for $12.5 billion. In July, BlackRock also agreed to acquire UK private market data group Preqin for £2.55 billion in cash.
Additionally, BlackRock is in talks with hedge fund giant Millennium Management for a potential minority stake acquisition. These moves reflect the strategic intent of BlackRock founder Larry Fink to expand the footprint of alternative investment businesses.
Behind this wave of acquisitions by BlackRock is a positive outlook on the enormous potential of the alternative investment market. Compared to traditional products like ETFs, alternative investments can generate higher management fee income. Currently, BlackRock's alternative investment assets have reached $450 billion.
In recent years, as traditional banks gradually exit certain core lending businesses due to regulatory pressures, alternative investment sectors such as private credit have experienced rapid growth. BlackRock's acquisition of HPS is precisely aimed at capitalizing on this broad market prospect

BlackRock's acquisition of HPS aims to expand its alternative investment business landscape. As traditional banks gradually withdraw from certain core lending businesses due to regulatory pressures, alternative investment areas such as private credit have experienced rapid growth

- BlackRock is accelerating its expansion by reaching a preliminary acquisition agreement with HPS Investment Partners to create an "alternative investment empire."  
- The deal, expected to be announced after the Thanksgiving holiday, could be valued at up to $12 billion, surpassing HPS's previous $10 billion IPO valuation.  
- This acquisition will enhance BlackRock's competitiveness in the private credit market, which has seen rapid growth as traditional banks withdraw from certain lending activities.

Accelerated expansion! BlackRock is close to acquiring private credit management company HPS