Investing.com-- BlackRock Inc (NYSE:BLK) has entered a preliminary deal to buy HPS Investment Partners as the world’s largest asset manager looks to further grow its scope, the Financial Times reported on Wednesday.
BlackRock has a “handshake deal” with the firm, FT reported, with general terms of the deal to be announced after the Thanksgiving Holiday. A final price will be around $12 billion.
HPS was considering an initial public offering that would have valued the firm at around $10 billion. The firm is one of the biggest private credit managers on Wall Street, and was founded by former Goldman Sachs (NYSE:GS) employees in 2007.
Wednesday’s report comes after BlackRock completed a $12.5 billion buyout of Global Infrastructure Partners. Earlier this year, the company had acquired UK data firm Preqin for around $3.2 billion.
The asset manager is seeking to gain a foothold in the rapidly growing private credit sector, given that alternative assets offer much more lucrative fees than traditional markets.