The $12bn deal is part of BlackRock’s strategy to grow its alternative investment portfolio. Credit: Michael Vi/Shutterstock.

Asset manager BlackRock is reportedly nearing the acquisition of HPS Investment Partners, a private credit firm in the US.

The deal, which is said to be in the region of $12bn, is part of BlackRock’s strategy to expand its alternative investment portfolio, reported Financial Times.

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The acquisition could be announced shortly after the Thanksgiving holiday, according to sources privy to the development.

HPS Investment Partners, founded by former Goldman Sachs investment banking head Scott Kapnick, was considering an IPO earlier this year with an estimated valuation of $10bn.

However, the acquisition by BlackRock is expected to command a higher premium.

“The two sides have agreed on the broad outline of the deal,” said one of the four people briefed on the discussions.

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HPS, which manages nearly $150bn in assets, is a major player in the private credit industry since its inception as a JPMorgan Chase unit in 2007.

Neither HPS nor BlackRock has made an official comment on the acquisition talks.

If materialised, it will add to BlackRock’s recent series of consolidation activities including its $12.5bn purchase of Global Infrastructure Partners (GIP) and the £2.55bn acquisition of UK-based private markets data group Preqin.

BlackRock, with $450bn in alternative assets under management following the GIP deal, continues to pursue growth through acquisitions, including ongoing talks with Millennium Management for a minority stake in its $69.5bn hedge fund.

In Q3 2024, BlackRock reported a net income attributable to the company of $1.63bn, up 2% from Q3 2023.