NEW YORK, Dec. 3 (Xinhua) -- American global investment manager BlackRock Inc. and HPS Investment Partners, a global credit investment manager, have entered into a definitive agreement for BlackRock to acquire HPS for approximately 12 billion U.S. dollars, with 100 percent of consideration paid in BlackRock equity, a company statement issued on Tuesday said.
According to the statement, HPS provides creative capital solutions across 148 billion dollars in client assets, and the combination creates an integrated private credit franchise with 220 billion dollars in client assets.
The combined private credit franchise will work side-by-side with BlackRock's 3 trillion dollars public fixed income business to provide both public and private income solutions for clients across their whole portfolios, the statement said.
HPS founders Scott Kapnick, Scot French and Michael Patterson will lead a new private financing solutions business unit with BlackRock as the company seeks to offer the full range of public fixed-income and alternative credit funds to clients, according to the statement.
"I am excited by what HPS and BlackRock can do together for our clients and look forward to welcoming Scott Kapnick, Scot French, and Michael Patterson, along with the entire HPS team, to BlackRock," said Laurence D. Fink, BlackRock chairman and CEO.
"Together with the scale, capabilities, and expertise of the HPS team, BlackRock will deliver clients solutions that seamlessly blend public and private," he said.
