BlackRock buying credit investment manager HPS Investment Partners in approximately $12 billion deal

BlackRock is buying credit investment manager HPS Investment Partners in a stock deal valued at about $12 billion, giving it more ways to service its insurance clients.

BlackRock said Tuesday that the transaction includes equity issued by a subsidiary, and that the equity can be exchanged on a one-for-one basis into BlackRock common stock. The company said the transaction creates an integrated private credit franchise with approximately $220 billion in client assets.

HPS has approximately $148 billion in client assets and is an independent provider of private credit for insurance clients. BlackRock said that the acquisition of HPS will position it to be a full-service, fiduciary provider of public-private asset management and technology solutions for insurance clients.

BlackRock and HPS will create a new private financing solutions division.