BlackRock Completes Acquisition of HPS Investment Partners, Creating Powerful Financial Impact

By Philip Seaworth • Tuesday, July 01 15:25 • Permanent Link

BlackRock, Inc. (NYSE: BLK) has successfully completed the acquisition of HPS Investment Partners (HPS), creating a significant impact on the financial market. BlackRock's addition of HPS positions the company to meet the accelerating client demands resulting from the shift towards financing activity being shifted toward the capital markets.

The acquisition has led to the creation of Private Financing Solutions (PFS), which integrates market-leading private credit, GP and LP solutions, and private and liquid CLO businesses into one platform.

Following the acquisition, BlackRock's integrated private credit franchise now holds $190 billion in client assets, providing both public and private income solutions for clients.

The GP/LP business will also play a significant role in helping private markets firms and investors navigate the current market environment through capital formation and liquidity solutions. This alignment will allow the firm to deepen relationships with sponsors and investors, delivering bespoke solutions across the platform.

Scott Kapnick, Chief Executive Officer of HPS, expressed enthusiasm about joining BlackRock and the potential of the new platform, emphasizing the enormous opportunities in the private credit markets and the ability to deliver success factors to clients, investors, shareholders, and employees.

The transaction was advised by Perella Weinberg Partners LP, Morgan Stanley & Co. LLC, Skadden, Arps, Slate, Meagher & Flom LLP, and Clifford Chance LLP for BlackRock. J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., BNP Paribas, and RBC Capital Markets acted as co-financial advisors to HPS, with Fried, Frank, Harris, Shriver & Jacobson LLP serving as legal counsel.

Following these announcements, the company's shares moved 1.1%, and are now trading at a price of $7.785. If you want to know more, read the company's complete 8-K report here.

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