BlackRock Inc (NYSE:BLK), the world's largest asset manager with $11.5 trillion in assets, is finalizing a deal to acquire HPS Investment Partners, a prominent private credit firm managing nearly $150 billion.

What Happened: The acquisition, expected to be announced after Thanksgiving, the Financial Times reported citing four people familiar with the matter, could be valued at around $12 billion, surpassing HPS's earlier estimated IPO valuation of $10 billion.

Founded by former Goldman Sachs executive Scott Kapnick, HPS has grown into a major player in private credit, benefiting from traditional banks retreating due to stricter post-crisis regulations.

This move aligns with BlackRock's strategy to expand its alternative assets business, a high-fee segment gaining prominence. The firm recently completed a $12.5 billion deal for Global Infrastructure Partners and agreed to acquire Preqin for £2.55 billion.

If finalized, this acquisition will position BlackRock ahead of competitors like Ares and Blackstone in the burgeoning private credit market. Neither BlackRock nor HPS has commented on the

BlackRock did not immediately respond to Benzinga's request for comment.

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