Blackrock, Inc. · NYSE:BLK
Blackrock — Merger or Acquisition (December 2024)
14 slides from Blackrock's merger presentation, Dec 3, 2024
Slide 1: Acquisition of HPS Investment Partners
Investor Presentation December 3, 2024 Acquisition of HPS Investment Partners
Slide 2: Forward looking statements
Forward looking statements This presentation, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations, inc
Slide 3: Accelerating private credit capabilities and scale
Accelerating private credit capabilities and scale BlackRock to acquire HPS Investment Partners for $12B through approximately 12.1M units exchangeable 1:1 for BlackRock stock (“BLK SubCo units”) Leading the Creates top-five private credit manager with enhanced ability to serve future of clients thr
Slide 4: Secular tailwinds are propelling growth and client opportunities
Secular tailwinds are propelling growth and client opportunities “Traditional” private credit AUM is expected to Factors creating opportunity for private debt more than double by 2030…1 Private credit AUM ($T) Accelerating retail (and institutional) demand 2.6x $4.5T+ Retail private debt industry AU
Slide 5: HPS Investment Partners overview
HPS Investment Partners overview Scaled global private and public credit manager with strong track record of growth Leading independent alternative credit manager with $148B in client assets, including $107B of fee-paying AUM, and approximately 800 employees across investments, client service & oper
Slide 6: Private credit AUM across BlackRock platforms
Private credit AUM across BlackRock platforms Key highlights Platform • 20+ year track record, focused primarily on lower middle-market opportunities overview3 • 2,000+ opportunities reviewed annually • Global platform across 16 local offices • ~$450M revenue in 2023 $89B Scaled • Direct Lending Fun
Slide 7: Complementary combination makes BlackRock a top five private credit manager by AUM
Complementary combination makes BlackRock a top five private credit manager by AUM Adding capabilities across credit spectrum…1 …and scaling our private markets business Private Credit Consolidates ~$130B in direct lending and junior capital Extends reach to upper middle-market, non-sponsor, more co
Slide 8: Opportunities for significant value creation via growth
Opportunities for significant value creation via growth • HPS brings a scaled borrower base and expands the breadth of credit offerings to upper Capital middle market and larger corporates, complementary to existing BlackRock relationships formation • Limited LP overlap (approximately 6% in private
Slide 9: Compelling value for BlackRock shareholders
Compelling value for BlackRock shareholders • Approximately 12.1M of BLK SubCo units, exchangeable 1:1 into BlackRock common shares Consideration1 • 9.2M BLK SubCo units delivered at closing, inclusive of employee retention pool2 • 2.9M BLK SubCo units paid in 5 years, subject to achievement of cert
Slide 10: Compelling value for BlackRock shareholders (cont’d)
Compelling value for BlackRock shareholders (cont’d) Governance • Scott Kapnick, Scot French and Michael Patterson to join BlackRock’s Global Executive Committee, and Mr. Kapnick will be an observer to the BlackRock Board of Directors • HPS management to lead combined private financing solutions pla
Slide 11: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 3 – Accelerating private credit capabilities and scale 1. Ranking based on AUM via Preqin, company disclosures, HPS and BlackRock as of September 2024. Rankings exclude insurer captive asset managers with pr
Slide 12: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 5 – HPS Investment Partners overview 1. Source: HPS as of September 30, 2024. HPS client assets of $148B includes $107B of fee-paying AUM (comprised of $85B of private credit and $22B of public credit). HPS
Slide 13: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 8 – Opportunities for significant value creation via growth 1. Overlap based on pro-forma total number of LPs with comparable private credit investments with both BlackRock and HPS. 2. Source: McKinsey and B
Slide 14: Important notes
Important notes The opinions expressed herein are as of December 2024 and are subject to change at any time due to changes in the market, the economic or regulatory environment or for other reasons. The information should not be construed as research or relied upon in making investment decisions or