Three Big Law firms advised on a $12 billion deal to boost BlackRock Inc.'s private credit offerings.
BlackRock plans to purchase HPS Investment partners, the company said Tuesday. The move will give BlackRock roughly $220 billion in private credit assets.
Skadden, Arps, Slate, Meagher & Flom and Clifford Chance advised BlackRock on the transaction. Fried, Frank, Harris, Shriver & Jacobson guided HPS.
Private credit deals have surged as an alternative to traditional lending amid high borrowing costs. Big Law firms have followed the money, angling to snag lucrative work advising on the transactions.
Total private credit assets are expected to reach $2.2 trillion by 2027, according to London-based investment data company Preqin Ltd. Private lenders bring flexible terms, deferred interest payments, upfront pricing and are able to finance riskier deals. The deals are also not subject to the same level of oversight as banks.
Skadden’s team includes M&A partners Peter Serating, Patrick Lewis and Blair Thetford, and counsel Nicholas Colombo. It also includes capital markets partner Laura Kaufmann Belkhayat and counsel Michael Hamilton; tax partner Victor Hollender; antitrust partner Kenneth Schwartz; investment management partners Michael Hoffman and Heather Cruz; and financial institutions regulatory partners Mark Chorazak and Adam Cohen.
Skadden is among Big Law’s top dealmakers, advising on more than $274 billion in M&A transactions through the first three quarters of this year.
The BlackRock transaction is expected to be completed in the middle of next year, pending regulatory approvals.
In October, BlackRock completed a $12.5 billion purchase of Global Infrastructure Partners, making it one of the largest managers of infrastructure assets. The asset manager also plans to purchase Preqin for $3.25 billion.
Skadden advised BlackRock on both of those deals, with Fried Frank also working on the GIP transaction.
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