BlackRock (NYSE: BLK) announced on Tuesday its agreement to acquire private credit firm HPS Investment Partners in an all-stock transaction valued at approximately $12 billion.
The acquisition will significantly expand BlackRock’s presence in private credit, a rapidly growing segment and one of Wall Street’s most sought-after investment areas.
Private credit, which involves non-bank institutions lending to companies, has seen a surge in demand as tighter regulations have increased costs for traditional banks to issue riskier loans.
The transaction is anticipated to be finalized by mid-2025.
