BlackRock has completed its acquisition of HPS and plans to create a combined platform to have all of its private credit solutions in one place.
Operating alongside BlackRock’s $3 trillion public fixed income franchise, the firm said the added capabilities of HPS will allow it to maximise the opportunities in this evolving trend.
The deal was first announced in December and marked BlackRock’s third acquisition in the private markets space, following the acquisition of Preqin in July 2024 and Global Infrastructure Partners (GIP) in October 2024.
Furthering the firms’ integration, BlackRock is also creating Private Financing Solutions (PFS), combining the firm’s private credit, GP and LP solutions, and private and liquid CLO businesses into one integrated platform.
The core of PFS, according to BlackRock, will be a US$190 billion ($289 billion) integrated private credit franchise as well as a platform to deliver both public and private income solutions for clients.
The transaction will see BlackRock and HPS’ existing GP/LP businesses align within the PFS structure, allowing the firm to “deepen relationships with sponsors and investors”, while also delivering bespoke solutions on-platform.
The PFS division will be led by HPS chief executive Scott Kapnick and HPS founding partners Scot French and Michael Patterson.
BlackRock chairman and chief executive, Larry Fink, said the acquisition will allow the firm to deliver better outcomes for its clients by utilising solutions that blend public and private assets.
“The creation of PFS means that we can answer far more client needs with far fewer calls, creating a comprehensive solutions provider for clients and borrowers alike,” Fink said.
With private markets rife with opportunity, Kapnick said HPS is now ready to “hit the ground running”.
“Current opportunities in the private credit markets are enormous, and successfully navigating them will require entrepreneurial drive, disciplined risk management, global reach, and a powerful platform to originate the most compelling transactions,” Kapnick said.
“BlackRock Private Financing Solutions will deliver all these success factors to our clients, investors, shareholders, and employees.”
