BlackRock Inc ( 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 ( BLK ) 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 ( BLK ) ahead of competitors like Ares and Blackstone in the burgeoning private credit market. Neither BlackRock ( BLK ) nor HPS has commented on the

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

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