According to Zhitalong Finance APP, Blackrock (BLK.US) is about to finalize the acquisition of HPS Investment Partners, which will greatly enhance its development in the private credit sector and accelerate its emergence as an important force in the alternative assets field. According to insiders, the acquisition agreement could be announced as early as next week, with HPS's valuation expected to reach 12 billion dollars or more, and the transaction will be completed through a combination of cash and stocks.

This acquisition will significantly enhance Blackrock's competitiveness in the private equity market. HPS, as one of the leading managers in the private credit market, manages over 123 billion dollars in private credit assets, positioning Blackrock in an important spot within the rapidly growing 1.6 trillion dollar market. In addition, HPS also manages another 22 billion dollars in public credit, employing over 760 staff, which will provide Blackrock with richer resources and expertise.

According to insiders, although negotiations are nearing conclusion, there remains a risk of delay or failure. Due to the sensitivity of the discussions, these individuals requested anonymity. Blackrock declined to comment, and HPS's spokesperson has also not responded to requests for comment.

It is understood that Blackrock's CEO, Larry Fink, has been actively pushing the company to enter the private equity market. The acquisition of HPS will be one of the largest alternative asset management acquisitions completed by Blackrock in less than a year. Previously, Blackrock acquired Global Infrastructure Partners for 12.5 billion dollars, becoming the second-largest infrastructure asset management company, and is finalizing the acquisition of private market data provider Preqin for 2.55 billion British pounds (3.25 billion dollars). Fink has promised that these transactions will help Blackrock expand its business in the private equity market and lay the foundation for linking exchange-traded funds to alternative assets.

By acquiring HPS, Blackrock's alternative investment business scale will exceed that of the carlyle group (CG.US), and begin to compete with private asset leaders such as KKR & Co (KKR.US) and apollo global management (APO.US). The size of blackstone remains considerable, with its assets approximately 1.1 trillion dollars as of the end of the third quarter.

Investors have actively shifted towards low-cost index funds and etfs over the past decade and away from higher-fee actively managed mutual funds; Blackrock's expansion into the private market will generate substantial revenue and profits for the company. The acquisition of HPS will not only expand Blackrock's business scope but also bring in more diversified income sources, further solidifying its leading position in the asset management industry.