BlackRock in talks to buy private credit firm HPS, Bloomberg News reports

(Reuters) -Asset management giant BlackRock (NYSE:) has emerged as the sole bidder in talks to acquire private credit firm HPS Investment Partners, Bloomberg News reported on Tuesday, citing people with knowledge of the discussions.

The parties are seeking to reach an agreement by the end of this year, the report said, adding that HPS may pursue an initial public offering or a minority stake sale if the parties cannot reach an agreement on valuation.

HPS would target a post-IPO valuation of $11 billion, with plans to seek a premium above that figure in a sale, the report said.

BlackRock and HPS Partners did not immediately respond to Reuters’ requests for comment.

BlackRock, which manages more than $10 trillion, is seeking to capitalize on a boom in investor demand for alternative assets, which includes anything from private equity to infrastructure.

HPS Investment Partners is a global investment firm managing assets across debt, liquid credit including syndicated leveraged loans, asset-based finance and real estate, according to its website. It had about $117 billion of assets under management as of June 2024.

Earlier in July, BlackRock agreed to buy UK data firm Preqin for 2.55 billion pounds ($3.32 billion) in cash.

Later in September, the U.S. Federal Energy Regulatory Commission approved BlackRock’s $12.5 billion deal for Global Infrastructure Partners.

($1 = 0.7686 pounds)