BlackRock, the world's largest asset manager, is in advanced discussions to acquire HPS Investment Partners as it seeks to expand its footprint in the rapidly growing private credit sector. BlackRock has emerged as the sole active bidder in these negotiations.
According to insiders, both parties are aiming to finalize an agreement by the end of the year. However, if they fail to reach a consensus on the valuation, HPS may consider other options such as going public or selling a minority stake.
HPS targets a valuation of $11 billion post-IPO, and if sold, it would seek a premium over this amount. If the deal is successful, BlackRock's alternative assets would exceed $500 billion. Currently, BlackRock manages $11.5 trillion in assets as of the end of the third quarter.
Despite progress in the negotiations, no definitive agreement has been reached, and discussions may conclude without a deal.
