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HPS, Arcmont Provide €25 Million in Fresh Funds to Dainese
HPS, Arcmont Provide €25 Million in Fresh Funds to Dainese

Bloomberg

time22-07-2025

  • Business
  • Bloomberg

HPS, Arcmont Provide €25 Million in Fresh Funds to Dainese

HPS Investment Partners and Arcmont Asset Management provided €25 million ($29.3 million) of fresh funding to ailing Italian sportswear maker Dainese SpA as part of broader negotiations that could see the private-credit funds take over the business. Dainese has issued the new debt as private notes due in three years, according to a statement from the company on Tuesday. HPS and Arcmont had already underwritten €285 million of notes maturing in 2028 to finance Carlyle Group Inc. 's buyout of Dainese in 2022.

BLK Acquires HPS Investment: Is it Riding on Private Credit Growth?
BLK Acquires HPS Investment: Is it Riding on Private Credit Growth?

Yahoo

time08-07-2025

  • Business
  • Yahoo

BLK Acquires HPS Investment: Is it Riding on Private Credit Growth?

BlackRock Inc. BLK has announced the completion of the acquisition of HPS Investment Partners (HPS). The move signals the company's deeper foray into the private credit market, which is rapidly emerging as one of the most lucrative sectors in global credit is reshaping financial markets, accelerating the convergence of public and private markets. Capital markets are becoming the main avenue for financing, enabling asset managers to align long-term capital with investors like insurers, pension funds, sovereign wealth funds and capitalize on these opportunities, BlackRock is launching Private Financing Solutions (PFS), a platform that integrates its leading private credit, GP, and LP solutions, and both private and liquid CLO December 2024, at the time of agreement, it was projected that the buyout would increase BlackRock's private markets fee-paying assets under management (AUM) and management fees by 40% and 35%, respectively. Additionally, the deal is expected to be modestly accretive to BlackRock's adjusted earnings per share in the first year following the close. Further, it was estimated that in 2025, HPS is expected to add approximately $850 million of the base fee and nearly $360 million of post-tax Fee-related earnings (FRE) at a 50% line with its efforts to enhance private credit capabilities, during its Investor Day conference last month, BLK announced plans to expand into private markets. It is targeting $400 billion in private markets fundraising by 2030. Further, in March 2025, BlackRock purchased Preqin, a premier independent provider of private markets data to enhance its private markets offerings. In October 2024, it acquired Global Infrastructure Partners to enhance its infrastructure offerings and origination capabilities. These buyouts reflect a strategic expansion of the company's Aladdin technology business into the rapidly growing private markets data segment. Product Diversification to Boost AUM: BlackRock has been focusing on diversifying its product suite and revenue mix, which, along with strategic buyouts, has been improving AUM over the years. AUM witnessed a five-year (2019-2024) CAGR of 9.2%. The uptrend continued during the first quarter of 2025. As of March 31, 2025, BlackRock's total AUM was a record $11.58 trillion, with net inflows of $83 billion. The momentum will likely continue as efforts to strengthen the iShares unit (offering more than 1,400 ETFs globally) and ETF operations and an enhanced focus on the active equity business are likely to offer March, the company launched iShares Bitcoin on Xetra and Euronext Paris under the ticker IB1T and on Euronext Amsterdam under the ticker name BTCN. Last September, the company announced a collaboration with Partners Group to introduce a multi-private markets model solution, boosting retail investors' accessibility to alternative investments. Also, last month, Jio BlackRock, a joint venture between BLK and India-based Jio Financial, received regulatory approval to operate as an investment adviser in product diversification efforts are likely to bolster the company's revenue mix, reduce revenue concentration risk, and allow it to serve a broader range of clients, aiding AUM growth. The company's GAAP revenues witnessed a CAGR of 7% over the last five years ended 2024, with the momentum continuing in the first quarter of the combination of HPS Investment, Preqin and GIP data with BLK's alternative asset management platform, eFront, will drive solid revenue growth in the quarters ahead. Sales Estimates Image Source: Zacks Investment Research Encouraging Capital Distributions: BlackRock has a decent balance sheet. As of March 31, 2025, it had $7.7 billion in cash and cash equivalents while borrowings totaled $12.3 billion. This indicates a decent liquidity position. BlackRock announced a 2% hike in the quarterly dividend to $5.21 per share in January 2025. BLK has increased its dividend five times in the last five years with an annualized dividend growth rate of 8.15%.Also, the company has a 46% dividend payout ratio, while its peers, SEI Investments and Invesco, have 21% and 45% payout ratios, respectively. Dividend Yield Image Source: Zacks Investment Research Also, BlackRock has a share repurchase plan in place. In the first quarter of 2025, the company repurchased $375 worth of shares. It aims to buy back shares worth $1.5 billion this year. Over the past month, the Zacks Consensus Estimate for 2025 and 2026 earnings per share has been revised marginally upward to $44.92 and $50.71, respectively. Estimate Revision Trend Image Source: Zacks Investment Research The projected figures imply growth of 3% and 12.9% for 2025 and 2026, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) In the past month, BLK shares have risen 7.3%, outperforming the S&P 500 index, the Zacks Finance sector and the industry. However, the stock has underperformed its close peers — SEI Investments SEIC and Invesco IVZ. One-Month BLK Price Performance Image Source: Zacks Investment Research In terms of valuation, BLK's price-to-book ratio (P/B) of 3.39X is lower than the industry's 3.73X. Thus, the stock is trading at a discount. This suggests that investors may be paying a lower price relative to the company's expected earnings growth. Price-to-Book Ratio Image Source: Zacks Investment Research Further, BLK is inexpensive compared with SEI Investments' P/B of 5.05X. On the other hand, the company is trading at a premium compared with Invesco, which has a P/B of BlackRock's growth initiatives have helped generate higher returns. This is demonstrated by the company's return on equity (ROE) of 15.57% compared with the industry's ROE of 10.60%. Return on Equity Image Source: Zacks Investment Research However, a steady rise in expenses is a headwind. The company recorded a five-year CAGR of 7.4% (ended 2024), mainly due to higher general and administrative (G&A) costs. The uptrend continued in the first quarter of 2025. Overall costs are expected to remain elevated due to the company's business expansion plans. Further, given rising geopolitical risks, foreign currency fluctuations and the global impact of tariff policies, BlackRock may witness subdued overseas revenues, which will likely weigh on its growth to some BlackRock is well-positioned to capitalize on the acquisitions, including HPS, Preqin and GIP, to expand its presence in the fast-growing private markets. This, alongside record AUM levels and product diversification efforts, is expected to support its financials. Inexpensive valuation and bullish analyst sentiments are other should watch out for the above-mentioned concerns and monitor how BlackRock integrates the acquisitions into its businesses before making any investment decision. Those who already own the stock can continue holding it for BLK carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BlackRock (BLK) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report SEI Investments Company (SEIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

BlackRock pushes deeper into private markets with purchase of ElmTree
BlackRock pushes deeper into private markets with purchase of ElmTree

Yahoo

time07-07-2025

  • Business
  • Yahoo

BlackRock pushes deeper into private markets with purchase of ElmTree

BlackRock (BLK) pushed deeper into private markets Monday with another acquisition. The world's largest asset manager said in a release it struck an agreement to buy commercial real estate firm ElmTree Funds, based in St. Louis. The purchase price wasn't disclosed, but the deal is expected to close within the next three months subject to regulatory approvals. The deal gives BlackRock a firm that has $7.3 billion in assets under management and leases over 250 commercial properties to single tenant renters across the US. It specializes in "build-to-suit" industrial real estate facilities. It is the latest attempt by giant money manager to broaden its holdings of private assets as CEO Larry Fink seeks to diversity and remake his New York financial institution. BlackRock in the last year has spent more than $28 billion on related acquisitions, including infrastructure investment firm Global Infrastructure Partners, private markets data provider Preqin, and private credit firm HPS Investment Partners. The HPS acquisition closed last week, on July 1. The money manager said it will tie ElmTree into its new private finance solutions unit formed with the HPS purchase. 'Structural shifts in the real estate sector are creating new opportunities for private capital," Scott Kapnick, CEO of HPS and chairman of BlackRock's private finance solutions unit, said in a statement. Fink has touted BlackRock's shift to private markets as a strategy aiming to give its customers better returns than the traditional 60/40 stock and bond portfolio. 'The future standard portfolio may look more like 50/30/20 — stocks, bonds, and private assets like real estate, infrastructure, and private credit,' Fink wrote in his annual shareholder letter back in April. Along with its push into private markets, BlackRock is also among a number of big Wall Street money managers now pushing for private assets to be added into retirement savings accounts. Last month, the money manager announced plans to launch a target-date fund holding private equity, credit and other investments that will be offered by Great Gray Trust. More recently, the US Securities and Exchange Commission's Office of the Investor Advocate said in a report it will look into the use of private equity and other alternative investments in retirement accounts. BlackRock estimates that its emerging approach to offer 401(k) holders private assets could deliver 15% more money in those savers' accounts over 40 years, according to a June paper. When compared to BlackRock's major business of offering investors public stocks and bonds through low-cost mutual funds, analysts see private asset management as generating higher margins. Fink and other BlackRock executives will have a chance to discuss their latest acquisition and larger private assets push during the firm's second quarter earnings call on July 15. David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance. His email is at Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

BlackRock to Buy Real Estate Firm With $7.3 Billion in Assets
BlackRock to Buy Real Estate Firm With $7.3 Billion in Assets

Bloomberg

time07-07-2025

  • Business
  • Bloomberg

BlackRock to Buy Real Estate Firm With $7.3 Billion in Assets

BlackRock Inc. agreed to buy real estate firm ElmTree Funds, which leases built-to-suit commercial properties to single-tenant renters, adding an investor with $7.3 billion in total assets under management. ElmTree will be integrated into Private Financing Solutions, the new platform created through BlackRock's $12 billion purchase of credit firm HPS Investment Partners last year. Payment for ElmTree will be primarily in stock, with the potential for additional consideration based on ElmTree's performance over the next five years, BlackRock said in a statement Monday. The purchase price and other financial details weren't disclosed.

Carlyle Is in Talks to Hand Over Dainese to Private Lenders
Carlyle Is in Talks to Hand Over Dainese to Private Lenders

Bloomberg

time04-07-2025

  • Business
  • Bloomberg

Carlyle Is in Talks to Hand Over Dainese to Private Lenders

Carlyle Group Inc. is in talks to hand over the keys to Dainese SpA to creditors HPS Investment Partners and Arcmont Asset Management, in one of the first potential private credit takeovers in Italy. The ownership transfer of the Italian sportswear company would be consensual and the firms are still negotiating the details of the deal, said people with knowledge of the matter, who spoke on the condition of anonymity. Nothing is finalized and the outcome could still change, they said.

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