BlackRock buying private credit manager HPS for $12 billion

Zoom in: Around one-quarter of the purchase price will be deferred for five years, while the amount of total shares could increase by 13% if certain financial performance milestones are met. The headline price includes up to $675 million in employee retention payments.

• HPS co-founders Scott Kapnick, Scot French and Michael Patterson would remain with BlackRock, joining its global executive committee and leading a new private financing solutions group

Timeline: The deal is expected to close in mid-2025, pending regulatory approvals.

• It also comes as Britain's antitrust authority said it will take a closer look at BlackRock's proposed $3.2 billion purchase of private markets data provider Preqin.

The bottom line: BlackRock has spent 2024 in alt asset bulk-up mode. It previously inked the Preqin deal, acquired Global Infrastructure Partners, and worked with Partners Group to develop a model portfolio for wealthy clients.