Newsletter Edition 48
Nov 29, 2024
3 min read
BlackRock Nears $12 Billion Acquisition of HPS Investment Partners
BlackRock is reportedly close to finalizing a deal to acquire private credit manager HPS Investment Partners for approximately $12 billion, according to a report by the Financial Times. If completed, the acquisition would represent a significant premium over HPS’s estimated $10 billion post-IPO valuation.
Unnamed sources familiar with the matter indicated that the broad terms of the agreement have been outlined, with an official announcement expected after the U.S. Thanksgiving holiday. However, specifics are still being negotiated, and both BlackRock and HPS Investment Partners have declined to comment.
HPS Investment Partners, a global firm managing approximately $117 billion in assets as of June 2024, specializes in private credit across diverse asset classes, including debt, liquid credit, asset-based finance, and real estate. The firm has been a notable player in the rapidly growing private credit sector, which has gained traction among investors seeking higher yields outside traditional fixed-income markets.
As the world’s largest asset manager, overseeing more than $10 trillion in assets, BlackRock has been strategically expanding its presence in alternative investments. This acquisition aligns with the firm's push into private credit, private equity, and infrastructure sectors.
The potential deal follows BlackRock’s recent acquisition of UK-based data analytics firm Preqin for £2.55 billion ($3.32 billion) in July, further showcasing its commitment to diversifying its portfolio and enhancing its capabilities in alternative asset management.
If finalized, the acquisition of HPS Investment Partners would solidify BlackRock's position as a dominant player in the private credit space, allowing it to offer a broader range of investment opportunities in a market poised for continued growth.
https://www.ft.com/content/971b12f5-b89f-4aaf-b95e-c8947e689c30
Odyssey’s PIP to Acquire Honeywell’s PPE Business in $1.33 Billion Deal
Protective Industrial Products (PIP), a portfolio company of private equity firm Odyssey Investment Partners, has entered into an agreement to acquire Honeywell’s personal protective equipment (PPE) business in an all-cash transaction valued at $1.33 billion.
Honeywell’s PPE business boasts a diverse portfolio of globally recognized brands, including Fendall, Fibre-Metal, Howard Leight, KCL, Miller, Morning Pride, North, Oliver, Salisbury, and UVEX. These brands offer a comprehensive range of safety products that serve various industries and enhance worker safety across the globe.
The business also operates with a strong international presence, supported by more than 25 distribution and manufacturing facilities worldwide. This global footprint underscores the scale and reach of Honeywell’s PPE operations, which PIP will now integrate into its existing platform.
The transaction is expected to close in the first half of 2025, pending customary closing conditions.
With this acquisition, PIP will significantly expand its capabilities and market share in the PPE industry, reinforcing its position as a global leader in safety equipment. The deal also highlights Odyssey Investment Partners’ ongoing strategy to build robust portfolio companies in high-growth sectors.
LeapFrog Investments Closes $1.15 Billion Fund IV for Emerging Markets
LeapFrog Investments has finalized its fourth fund (Fund IV) with $1.15 billion in commitments, surpassing its $1 billion target. This includes $808 million in primary fund commitments and $210 million in pre-allocated co-investments aimed at accelerating healthcare and financial services companies in emerging markets. The firm also partnered with Prudential Financial to invest in Alexander Forbes, a leading African financial services firm, and launched a new climate investing strategy targeting green tools in Africa and Asia.
Top-tier investors include Temasek, AIA, Prudential Financial, the European Investment Bank, and the Ford Foundation. Fund IV also attracted new investors from markets like Singapore, China, Japan, and Norway, expanding LeapFrog’s global reach.
The fund has already invested in five transformative companies:
Redcliffe Labs: A leading diagnostics network in India conducting over 20 million tests annually.
Sun King: The world’s largest off-grid solar financier, serving 118 million people and saving $7.2 billion in energy costs.
bolttech: An insurtech innovator offering embedded insurance across 35 markets.
Electronica Finance: Providing loans to India’s MSMEs, tripling assets under management in five years.
Auxilo Finserve: A higher-education lender in South Asia, achieving 75% annual growth in its loan book.
LeapFrog’s Fund IV aims to empower underserved populations while delivering strong financial returns, cementing the firm’s position as a leader in profit-with-purpose investing.
https://www.privateequitywire.co.uk/leapfrog-raises-1-15bn-for-fourth-fund/