BlackRock is closing in on a USD 12 bn acquisition that would help its push to become a major player in alternative assets. The world’s largest asset manager is reportedly in the final stages of acquiring US-based investment firm HPS Investment Partners, Bloomberg reports, citing sources with knowledge of the matter. The transaction could be announced as early as this week following the Thanksgiving holiday in the US, according to the Financial Times.

For what it’s worth: If the acquisition goes through, BlackRock would have more than USD 500 bn of alternative assets to its name. The asset manager currently manages USD 11.5 tn in total.

Background: HPS Investment Partners had reportedly been looking at a potential IPO earlier this year, with Bloomberg reporting in September that the firm was in talks with potential investors for a listing that would value the company at USD 10 bn or more. Reports of BlackRock’s interest in acquiring HPS emerged the following month.

With domination of the public equity market under its belt, BlackRock wants to recreate its success in private assets. “BlackRock Chief Executive Officer Larry Fink has moved aggressively to expand in private markets, and buying HPS would mean BlackRock has clinched the two largest-ever acquisitions of alternative asset managers in less than a year,” Bloomberg says. The firm acquired Global Infrastructure Partners for USD 12.5 bn in October, marking “the biggest asset management merger of the decade,” according to Pitchbook.

The era of asset manager consolidation: 2024 is on track to become a record year for M&A in asset management in terms of transaction value, according to Pitchbook. As of 8 October, some 112 asset manager consolidation transactions worth USD 27.3 bn, with the global wave “driven by more managers seeking to develop into increasingly diversified multi-strategy platforms to attract a broader class of investor,” Pitchbook says.

MARKETS THIS MORNING-

Asian markets are mostly starting the day in the green, with China’s Shanghai index up +1.0%, Hong Kong’s Hang Seng in the green by +0.2%, and Japan’s Nikkei inching up to +0.1%, while Korea’s Kospi is down -0.1%

EGX30

30,497

+0.8% (YTD: +22.5%)

USD (CBE)

Buy 49.52

Sell 49.66

USD (CIB)

Buy 49.53

Sell 49.63

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,742

+0.9% (YTD: -1.6%)

ADX

9235

-0.3% (YTD: -3.6%)

DFM

4847

+0.5% (YTD: +19.4%)

S&P 500

6032

+0.6% (YTD: +26.5%)

FTSE 100

8287

+0.1% (YTD: +7.2%)

Euro Stoxx 50

4804

+1.0% (YTD: +6.3%)

Brent crude

USD 71.84

-1.3%

Natural gas (Nymex)

USD 3.36

+5.0%

Gold

USD 2,681.00

+0.6%

BTC

USD 97,781.70

+1.0% (YTD: +130.2%)

THE CLOSING BELL-

The EGX30 rose 0.8% at today’s close on turnover of EGP 3.2 bn (23.3% below the 90-day average). Regional investors were the sole net sellers. The index is up 22.5% YTD.

In the green: Cleopatra Hospitals (+8.6%), Palm Hills Development (+8.4%), and Juhayna (+4.6%).

In the red: Credit Agricole (-0.9%), TMG Holding (-0.6%), and Oriental Weavers (-0.5%).

CORPORATE ACTIONS-

Heliopolis Housing and Development’s general assembly has elected to postpone plans to raise its issued capital, citing a need for further study, the company said in an EGX disclosure (pdf). The real estate company had been planning to raise its issued capital to EGP 1 bn, up from EGP 333.8 mn.

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