BlackRock has completed its acquisition of HPS Investment Partners, significantly expanding its footprint in private credit and establishing a new integrated platform, Private Financing Solutions (PFS), with $190bn in client assets.

The transaction positions BlackRock to respond to growing investor demand for flexible private and public credit strategies, particularly as market dynamics shift more financing from traditional banks to capital markets. With HPS joining forces with BlackRock’s $3tn public fixed income business, the firm now aims to offer clients and borrowers seamless solutions across the credit spectrum.

PFS will combine both firms’ capabilities across private credit, CLOs, and GP/LP solutions, creating one of the most comprehensive private credit platforms globally. HPS will retain its branding under the new structure and will now operate as “HPS, a part of BlackRock.” Its flagship strategies – including the Strategic Investment Partners, Specialty Loan Fund, Core Senior Lending Fund, and Corporate Lending Fund – will remain intact.

Laurence D. Fink, Chairman and CEO of BlackRock, said the acquisition allows the firm to “seamlessly blend public and private” credit offerings. He added: “We are excited to realise the potential of this platform and thrilled to have Scott, Scot, Mike, and the talented HPS team join us.”

HPS CEO Scott Kapnick, who will become an observer to the BlackRock board, noted: “We are ready and excited to hit the ground running. BlackRock Private Financing Solutions will deliver the global reach, disciplined risk management, and origination scale our clients need.”

This deal strengthens BlackRock’s GP/LP business and its ability to provide capital formation and liquidity solutions for private markets. It also reflects a broader trend of asset managers stepping into roles traditionally held by banks, as institutions seek long-dated income opportunities.

Advisors on the deal included Perella Weinberg and Morgan Stanley for BlackRock, with Skadden and Clifford Chance providing legal counsel. HPS was advised by J.P. Morgan, Goldman Sachs, BofA Securities, Deutsche Bank, BNP Paribas, and RBC Capital Markets, with Fried Frank as legal counsel.

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