BlackRock halts Asia private credit fundraising amid HPS merger

BlackRock has paused fundraising for its latest Asia-Pacific private credit fund, underscoring the challenges facing the asset manager as it integrates its $12bn acquisition of HPS Investment Partners, according to a report by Bloomberg.

The firm had been targeting $1bn for its third Asia-Pacific private credit vehicle, but efforts stalled earlier this year following the announcement of the HPS merger. Internal discussions with HPS executives on how to proceed are expected in the coming months, people familiar with the matter said.

The pause highlights ongoing difficulties for BlackRock in building scale in Asia’s private credit market. A key investor, Arch Capital Group, is reportedly seeking to sell at least $350m of stakes in BlackRock funds following disappointing performance and senior team departures. Its previous Asia-Pacific private credit fund raised less than half its $1bn target, while a partnership with Mubadala Investment Company was dissolved in June due to limited deal flow.

The challenges reflect wider strains in the $1.7tn global private credit market. According to JPMorgan, default rates for private credit have risen to 5.4% including non-accrual loans, while fundraising slowed to $70bn in the first half of 2025 — just a tenth of all alternative asset inflows and the weakest proportion in a decade.

Despite these headwinds, BlackRock has set its first firmwide private markets target, aiming to raise $400bn by 2030, as CEO Larry Fink looks to cement the firm’s presence as a top-tier private credit player following the HPS merger.

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