BlackRock strengthens presence in alternative investment sector through multi-billion acquisition

BlackRock is once again making a statement in the dynamic market for alternative assets: The world's largest asset manager has agreed to acquire HPS Investment Partners for $12 billion. This strategic acquisition is intended to help BlackRock further expand its position in the rapidly growing sector of alternative investments, which is increasingly replacing traditional banking. New York-based HPS is one of the leading companies in the field of private lending. The acquisition will be financed in two parts: First, $9.3 billion in shares will be paid at the deal's closing. An additional 2.9 million shares, currently valued at $3 billion, will be due in five years, provided HPS meets certain financial targets. Under the leadership of Larry Fink, BlackRock is continually pursuing its course of expanding beyond stocks and bonds. "I am excited about the collaboration between HPS and BlackRock, which will benefit our clients," Fink commented optimistically. In addition to the planned acquisition of HPS, BlackRock recently completed the purchase of infrastructure investment firm Global Infrastructure Partners for $12.5 billion and announced the acquisition of the UK market data group Preqin for £2.55 billion. With this strategy, BlackRock is moving into direct competition with leading alternative asset managers such as KKR, Blackstone, and Apollo. By incorporating HPS's $148 billion in managed assets, BlackRock's alternative business will grow to nearly $600 billion. The market for private credit funds has increasingly proven lucrative for institutional investors, further enhancing the attractiveness of this segment.