BlackRock (BLK, Financial) is on the verge of acquiring HPS Investment Partners, significantly boosting its presence in the private credit market. The deal, expected to be announced soon, values HPS at $12 billion or more and will be completed with a mix of cash and stock. This acquisition will enhance BlackRock’s competitiveness in the $1.6 trillion private credit market, as HPS manages over $123 billion in private credit assets.

HPS also oversees $22 billion in public credit with a workforce of over 760 employees, providing BlackRock with additional resources and expertise. Although negotiations are nearing completion, there is still a risk of delay or failure. BlackRock CEO Larry Fink has been actively expanding into the private market, with recent acquisitions including Global Infrastructure Partners and Preqin.

With the acquisition of HPS, BlackRock’s alternative investment business will surpass Carlyle Group (CG) and start to rival KKR (KKR) and Apollo Global Management (APO).

https://www.gurufocus.com/news/2619480/blackrock-blk-nears-12-billion-acquisition-of-hps-investment-partners