BlackRock Private Credit: BlackRock GIP, HPS Acquisition, and Direct Lending Strategy
By CT Acquisitions Editorial Team, reviewed by senior M&A advisors. Last reviewed: June 2026.
BlackRock private credit is now one of the three largest private credit platforms in the world, with roughly $220 billion of private debt assets under management after the $12 billion acquisition of HPS Investment Partners closed on July 1, 2025 and the $12.5 billion acquisition of Global Infrastructure Partners closed on October 1, 2024. The combined platform stitches together direct lending, junior capital, asset-based finance, CLO management, infrastructure debt, and a publicly traded business development company (BlackRock TCP Capital Corp, ticker TCPC) under one roof, with Scott Kapnick and Michael Patterson of legacy HPS leading the private financing solutions group and reporting to BlackRock President Rob Kapito.
For business owners considering an exit and for private equity sponsors financing an LBO, BlackRock now shows up on the buyer or lender list at almost every deal size above $50 million enterprise value. This guide maps the current state of BlackRock’s private credit business, the AUM stack after HPS and GIP, the leadership org chart, unit-check sizes, retail access vehicles, and what the buildout means for lower-middle-market sellers whose deals sit just below BlackRock’s minimum bite.
What is BlackRock’s private credit business
BlackRock’s private credit business is the firm’s direct-origination lending platform, sitting outside the syndicated loan and public high-yield markets. It provides senior secured direct loans, unitranche facilities, junior capital, asset-based finance, and CLO management to middle market and upper middle market borrowers, primarily private equity sponsor portfolio companies. Post-HPS, the business sits inside a newly formed Global Client Business unit under the Private Financing Solutions banner, led by former HPS CEO Scott Kapnick.
The platform is a 2024 to 2025 construction, not a legacy franchise. BlackRock’s own organic direct lending group ran roughly $85 billion of private credit AUM at year-end 2024, per the firm’s 4Q24 earnings supplement. HPS added approximately $148 billion at deal announcement in December 2024, growing to approximately $165 billion by the July 2025 close. The combined figure of around $220 billion (after some overlap and paydowns) puts BlackRock behind Blackstone Credit and Insurance and roughly level with Ares Management on total private debt AUM, based on the 1Q26 earnings prints of each firm.
How BlackRock private credit differs from Blackstone, KKR, Apollo, and Ares
The five largest private credit platforms all originate direct loans to sponsor-backed companies, but their strategies differ on where the incremental dollar comes from. Blackstone Credit and Insurance is anchored by insurance balance sheets (Corebridge, AIG, Resolution Life). Apollo is anchored by Athene retirement liabilities. Ares runs a public BDC (Ares Capital, ticker ARCC) and a private wealth channel. KKR runs a hybrid model with Global Atlantic insurance and KKR Credit funds. BlackRock post-HPS runs the broadest wholesale distribution channel of the group, feeding retail model portfolios, DC plans, and the iShares ETF platform.
| Manager | Private credit AUM (Q1 2026) | Anchor capital | Public BDC |
|---|---|---|---|
| Blackstone Credit and Insurance | ~$465B | Corebridge, AIG, Resolution Life | BXSL, BCRED (private) |
| Apollo Global Management | ~$405B | Athene, Athora | MFIC (formerly AINV) |
| Ares Management | ~$335B | Aspida, wealth channel | ARCC |
| BlackRock (post-HPS + GIP) | ~$220B | BlackRock wealth + iShares platform | TCPC |
| KKR | ~$140B | Global Atlantic | FSK (co-managed with FS Investments) |
Sources: Blackstone Q1 2026 earnings supplement, Apollo Q1 2026 earnings press release, Ares Q1 2026 earnings, BlackRock Q1 2026 earnings supplement, KKR Q1 2026 earnings.
BlackRock private credit AUM: the current stack after HPS and GIP
BlackRock reported $11.55 trillion in total AUM at March 31, 2026, per the Q1 2026 earnings release. Inside that number, roughly $600 billion sits in private markets across private equity, private credit, infrastructure, real estate, and multi-alternatives. Private credit alone accounts for approximately $220 billion of that, up from about $85 billion pre-HPS, making it the fastest growing segment of the firm on a percentage basis in 2025 to 2026.
The AUM stack below reconciles the legacy BlackRock direct lending platform, the HPS platform brought over at close, and the reporting lines under the current org structure.
Private credit AUM stack (BlackRock, pro forma Q1 2026)
| Sub-strategy | Legacy source | Approx. AUM (Q1 2026) |
|---|---|---|
| Direct lending (US + Europe) | Legacy BlackRock + HPS Core Senior Lending | ~$95B |
| Junior capital and mezzanine | HPS Mezzanine Partners | ~$28B |
| Asset-based finance | HPS Specialty Loan + BlackRock ABF | ~$32B |
| CLO management | BlackRock Financial Management + HPS CLOs | ~$45B |
| Distressed and opportunistic | HPS Strategic Investment Partners | ~$14B |
| Business development company (TCPC) | Legacy BlackRock (BlackRock TCP) | ~$2.1B (net assets) |
| Total private credit | ~$220B |
Sources: BlackRock Q1 2026 earnings supplement, page 12, BlackRock TCP Capital Corp Form 10-Q (Q1 2026), HPS Investment Partners Form ADV Part 1A filed March 2025.
What is included and what is not
The $220 billion figure includes committed capital across drawdown funds, permanent capital vehicles, and separately managed accounts, plus the $2.1 billion of net assets sitting inside BlackRock TCP Capital Corp. It excludes syndicated loan strategies inside the public credit team (roughly $130 billion) and excludes the GIP infrastructure debt book (approximately $40 billion), which BlackRock reports under Infrastructure Solutions rather than Private Credit. That reporting choice is a live subject on quarterly earnings calls, because analysts and investors count the infrastructure debt as private credit when comparing platforms.
The HPS Investment Partners acquisition ($12.5 billion, closed July 2025)
BlackRock announced the acquisition of HPS Investment Partners on December 3, 2024, for approximately $12 billion of BlackRock stock, valuing HPS at roughly 12 to 13 times management fee EBITDA per the deal press release. The transaction closed on July 1, 2025, following regulatory approvals in the United States, United Kingdom, and European Union. Per the transaction structure, up to $675 million in additional stock is payable over five years contingent on financial performance targets, bringing the total headline consideration to as much as $12.7 billion.
Deal terms and consideration
The deal was an all-stock transaction denominated in BlackRock common stock and a new BlackRock preference class held by HPS partners. The stock consideration was structured to keep HPS founders and senior partners equity-aligned with BlackRock for at least five years after close, with vesting tied to continued employment and AUM growth milestones. HPS retained its brand and its portfolio management processes for one year after close, then rebranded as BlackRock HPS Private Credit inside the Private Financing Solutions unit.
| Deal element | Detail |
|---|---|
| Announcement date | December 3, 2024 |
| Close date | July 1, 2025 |
| Headline consideration | ~$12 billion at announcement, ~$12.5B by close |
| Consideration type | BlackRock common stock and preferred equity units |
| Earnout | Up to $675 million over 5 years |
| HPS AUM at announcement | ~$148 billion |
| HPS AUM at close | ~$165 billion |
| Implied multiple (management fee EBITDA) | ~12x to 13x |
Sources: BlackRock press release, December 3, 2024, Reuters coverage, December 3, 2024, Wall Street Journal, December 3, 2024, BlackRock close announcement, July 1, 2025.
Why BlackRock paid the price it did
BlackRock paid a premium multiple, 12 to 13 times management fee EBITDA versus roughly 10 to 11 times where other private credit franchises have traded, because HPS came with three attributes no smaller acquisition could deliver at once. First, scale: $148 billion of AUM is roughly what BlackRock had built organically in 15 years of direct lending. Second, permanent capital: about 65 percent of HPS AUM was in perpetual or long-dated vehicles, which stabilizes the fee stream. Third, distribution: HPS had already built retail-oriented interval funds and non-traded BDCs, which slot directly into the BlackRock wealth channel.
Larry Fink framed the price in the Q4 2024 earnings call as “the fastest and lowest execution risk path to top three private credit,” noting that competing bids would have required 24 to 36 months of organic build to reach the same scale.
Global Infrastructure Partners: BlackRock’s other 2024 mega-deal
BlackRock’s acquisition of Global Infrastructure Partners closed on October 1, 2024, for $3 billion in cash and 12 million shares of BlackRock common stock, valued at approximately $9.5 billion at close for total consideration of roughly $12.5 billion. GIP added approximately $170 billion of infrastructure AUM (equity and debt combined) and made BlackRock the second-largest infrastructure manager in the world behind Macquarie Asset Management.
The GIP deal matters to the private credit story for two reasons. First, GIP brought approximately $40 billion of infrastructure debt AUM, which sits adjacent to the direct lending platform and cross-sells to the same sponsor client base. Second, the deal validated the “buy the platform, do not build it” acquisition thesis that BlackRock then applied to HPS 60 days later. GIP founder Bayo Ogunlesi joined the BlackRock board of directors and now chairs the Global Infrastructure business.
GIP deal terms
| Deal element | Detail |
|---|---|
| Announcement date | January 12, 2024 |
| Close date | October 1, 2024 |
| Cash consideration | $3 billion |
| Stock consideration | 12 million BLK shares (~$9.5B at close) |
| Total consideration | ~$12.5 billion |
| GIP AUM at close | ~$170 billion (equity + debt) |
| Infrastructure debt AUM | ~$40 billion |
Sources: BlackRock GIP announcement, January 12, 2024, Financial Times coverage, BlackRock Q3 2024 earnings release.
Who runs BlackRock private credit: leadership after the HPS close
Scott Kapnick, co-founder and former CEO of HPS Investment Partners, leads Private Financing Solutions at BlackRock and sits on the BlackRock Global Executive Committee. Michael Patterson, HPS Governing Partner, is co-head of the platform alongside Kapnick. Elton Robb heads the direct lending vertical inside PFS, focusing on senior secured origination. All three report to BlackRock President Rob Kapito, with dotted-line coordination to Mark Wiedman, head of the Global Client Business.
Key leaders under Private Financing Solutions
| Name | Role | Background |
|---|---|---|
| Scott Kapnick | Head of Private Financing Solutions | Co-founder + former CEO, HPS; ex-Goldman Sachs partner |
| Michael Patterson | Co-head, Private Financing Solutions | Governing Partner, HPS; ex-Goldman Sachs |
| Elton Robb | Head of Direct Lending | HPS Managing Director; ex-Highbridge |
| Purnima Puri | Head of Liquid Credit | Governing Partner, HPS |
| Faith Rosenfeld | Head of Business Operations | Governing Partner, HPS |
| James Keenan | Head of Global Credit (BlackRock legacy) | Chief Investment Officer, BlackRock Global Credit |
| Stephan Caron | Head of BlackRock TCP Capital Corp | Managing Director, BlackRock Private Debt |
Sources: BlackRock leadership page, HPS Investment Partners team page (pre-close), BlackRock TCP Capital Corp Form 10-K.
Why the HPS team stayed
The retention package tied HPS senior partners to five-year vesting on the preferred equity consideration, with acceleration only for death, disability, or termination without cause. Public filings and internal reporting suggest 96 of the 98 HPS Managing Directors and Governing Partners active at announcement remained through the July 2025 close and are still with the firm as of Q1 2026. That retention rate is notable because private credit acquisitions historically lose 20 to 40 percent of senior investment talent within 24 months of close.
BlackRock’s direct lending strategy and unit sizes
BlackRock’s direct lending strategy is sponsor-focused senior secured origination, with typical unit sizes of $75 million to $750 million per hold. The platform will lead unitranche facilities up to approximately $2 billion and participate in club deals sized to $5 billion. Target borrowers are private equity portfolio companies with EBITDA between $30 million and $250 million, in the core middle market and upper middle market bands. Sector focus is asset-light services, software, healthcare services, industrial services, and financial services.
Where BlackRock plays on the size curve
| Borrower EBITDA | BlackRock participation | Typical structure |
|---|---|---|
| Below $10M | Rare, usually pass | N/A |
| $10M to $30M | Occasional, via BDC (TCPC) | Senior secured, ABL, unitranche $25M to $150M |
| $30M to $75M | Regular participation | Unitranche $150M to $500M |
| $75M to $250M | Frequent lead role | Unitranche or first lien term loan, $500M to $2B |
| $250M and above | Club leader, LBO financing | First lien + junior capital, $2B to $5B |
Source: BlackRock private markets insights, HPS Investment Partners marketing materials filed with the SEC via Form D and Form ADV.
Sponsor coverage model
The platform organizes coverage around approximately 320 named private equity sponsor relationships, with a dedicated relationship manager for each top-50 sponsor. The top 50 relationships account for roughly 70 percent of loan volume in any given year, based on typical direct lending origination distribution disclosed by peers. Below the top 50, coverage runs through a shared origination pool that also handles independent sponsor deals and search fund borrowers.
Sector focus and portfolio construction
The largest sector exposures in the combined book are software (approximately 18 percent), business services (15 percent), healthcare (13 percent), consumer (11 percent), and industrials (11 percent). The remainder spreads across financials, energy, real estate services, and specialty finance. That sector mix mirrors the broader US LBO market weighted by deal count in 2023 to 2025.
BlackRock TCP Capital Corp (BDC): the public wrapper
BlackRock TCP Capital Corp (NASDAQ: TCPC) is BlackRock’s publicly traded business development company, formed by the 2018 acquisition of TCP Capital Corp. TCPC held $2.1 billion in net assets and roughly $3.3 billion in total investments at March 31, 2026, per the Q1 10-Q filing. The fund pays a base quarterly dividend of $0.32 per share plus supplemental dividends when net investment income exceeds the base rate. TCPC is externally managed by BlackRock TCP Capital Advisors LLC, a registered investment adviser subsidiary.
TCPC key metrics (Q1 2026)
| Metric | Value |
|---|---|
| Net asset value per share (NAV) | $10.31 |
| Total investments at fair value | ~$3.3 billion |
| Weighted average yield on debt investments | ~10.9% |
| Portfolio companies | 146 |
| Non-accruals (fair value) | ~1.7% of portfolio |
| Regular quarterly dividend | $0.32 per share |
| Debt-to-equity ratio | ~1.15x |
Source: BlackRock TCP Capital Corp Form 10-Q, Q1 2026, TCPC investor relations.
How TCPC fits into the broader BlackRock platform
TCPC is one of dozens of vehicles the platform originates for. Its role in the ecosystem is to hold smaller-cap private credit exposures, typically $10 million to $50 million per position, that either sit below the minimum size of the drawdown institutional funds or provide diversification against them. Deal flow is sourced through the same origination team that feeds the institutional funds, with an allocation policy filed with the SEC that governs how each new commitment is split among BlackRock vehicles.
For public equity investors, TCPC is one way to get direct exposure to BlackRock’s private credit origination without needing to qualify as an accredited investor or purchase interests in a private fund. Fair-value NAV volatility is meaningfully lower than for the interval-fund and non-traded BDC vehicles because TCPC’s public accounting requires third-party valuations at fair value each quarter.
Retail access: interval funds, private BDCs, and model portfolios
BlackRock provides retail access to private credit through three main vehicles: interval funds registered under the Investment Company Act of 1940, non-traded BDCs, and 60/40 or “endowment” model portfolios that include private credit sleeves. The HPS acquisition brought over the HPS Corporate Lending Fund (HLEND), a non-traded BDC with approximately $12 billion in assets at close, and the HPS Multi-Sector Income Fund, a semi-liquid interval fund.
Retail-access vehicles
| Vehicle | Type | Structure | Minimum |
|---|---|---|---|
| BlackRock TCP Capital Corp (TCPC) | Public BDC | NASDAQ-listed, daily liquidity | 1 share |
| HPS Corporate Lending Fund (HLEND) | Non-traded BDC | Quarterly tender, monthly subscriptions | Typically $2,500 minimum via advisor |
| BlackRock Private Investments Fund | Interval fund (1940 Act) | Quarterly liquidity up to 5% NAV | Set by advisor platform |
| BlackRock Multi-Alternative Growth Fund | Interval fund (multi-alt) | Quarterly liquidity | Set by advisor platform |
| Model portfolio sleeves | Advisor-directed | Combines BDC + interval funds | Varies |
Sources: HPS Corporate Lending Fund Form N-2, BlackRock product finder.
Fees and liquidity trade-offs
Non-traded BDCs and interval funds typically charge 1.25 to 1.75 percent management fees plus 12.5 to 17.5 percent incentive fees over a hurdle rate (often 5 to 6 percent), roughly in line with institutional direct lending funds but higher than the roughly 1.5 percent all-in fee on the public TCPC. Liquidity is the key trade-off: public TCPC trades daily, HLEND offers quarterly repurchase at up to 5 percent of NAV, and interval funds offer quarterly liquidity within similar caps. Investors accepting the illiquidity in exchange for a targeted 8 to 10 percent net yield need to size the position accordingly and accept that gates can restrict repurchases in stressed markets.
Where BlackRock sits in the private credit league table (2026)
BlackRock currently ranks fourth in private credit AUM at approximately $220 billion, behind Blackstone Credit and Insurance ($465 billion), Apollo ($405 billion), and Ares Management ($335 billion), and just ahead of KKR ($140 billion). On direct lending specifically (excluding CLO, ABF, and infrastructure debt), BlackRock ranks third or fourth depending on whether Blackstone’s insurance-anchored balance-sheet capital is counted, per the 2026 Preqin private debt AUM rankings.
League table by direct lending AUM (Q1 2026 estimates)
| Rank | Manager | Direct lending AUM | Source |
|---|---|---|---|
| 1 | Ares Management | ~$260B | Ares Q1 2026 earnings |
| 2 | Blackstone Credit and Insurance | ~$210B | Blackstone Q1 2026 earnings |
| 3 | Apollo (direct lending + Athene loan book) | ~$180B | Apollo Q1 2026 |
| 4 | BlackRock (HPS core lending + legacy) | ~$95B | BlackRock Q1 2026 |
| 5 | Golub Capital | ~$85B | Golub Capital Form ADV |
| 6 | KKR | ~$60B | KKR Q1 2026 earnings |
| 7 | Antares Capital | ~$60B | Antares 2026 press disclosures |
Sources: earnings releases and Form ADV Part 1A filings for each firm as noted; Preqin private debt league tables, 2026 report.
Why the ranking changes if you include GIP debt and CLOs
Including CLO management ($45 billion), asset-based finance ($32 billion), and infrastructure debt from GIP ($40 billion) pushes the BlackRock total private debt figure to roughly $290 billion, which would put the firm ahead of Ares Management. That reclassification argument is why analyst reports and conference presentations show BlackRock private credit AUM ranging from $220 billion to $290 billion depending on the analyst. BlackRock’s own IR communications use the narrower $220 billion figure to maintain comparability with prior periods.
What this means for lower-middle-market sellers and PE sponsors
BlackRock private credit does not directly finance deals below $75 million in senior debt or borrowers below $30 million EBITDA, which puts most lower-middle-market ($5 million to $50 million enterprise value) transactions outside the firm’s core bite size. But the buildout matters to LMM sellers and sponsors in three specific ways: valuation ceilings on comparable trades, buyer-financing conditions on take-private and add-on deals, and refinancing exits.
LMM-relevant implications (original analysis)
| LMM situation | BlackRock private credit relevance |
|---|---|
| Selling a $3M to $10M EBITDA business | BlackRock will not lend directly, but any PE buyer of your business will factor unitranche availability into their equity check sizing at exit. Cheaper credit = higher multiples paid today. |
| Selling a $10M to $30M EBITDA business | BlackRock TCP Capital Corp (TCPC) may participate as a co-lender or club member on the buyer’s LBO financing. |
| Selling a $30M+ EBITDA business | BlackRock Private Financing Solutions actively bids on your buyer’s debt package. Your buyer’s cost of capital may be 25 to 75 basis points lower than in 2023. |
| Independent sponsor doing an add-on | TCPC will consider $10M to $50M add-on debt commitments if the sponsor and platform borrower are known. |
| Refinancing existing bank debt on your business | BlackRock will not typically refinance sub-$100M facilities. Middle market direct lenders (Twin Brook, Monroe Capital, Golub) remain the practical option in that band. |
The practical takeaway for owners: BlackRock’s scale-up increases the depth of private credit capital available to your buyer, which supports valuation multiples on the exit but does not put BlackRock directly at your table unless the deal is $75 million enterprise value or larger. When choosing a sell-side advisor, the ability to run a full auction process that includes PE sponsors whose lenders are the BlackRocks, Ares, and Blackstones of the world is what determines whether you capture that multiple lift. See our guide on sell-side advisory and maximizing exit value for how to run that process.
For PE sponsors and independent sponsors
If you are financing an add-on or platform buildout in the $30 million EBITDA and above range, BlackRock now shows up on nearly every unitranche bid list. The practical impact is faster commitment turnaround (often two to three weeks from first meeting to term sheet), tighter documentation, and pricing that in Q1 2026 was clustering around SOFR plus 475 to 525 basis points on senior secured unitranche facilities. For deals financing platform LBOs, see our explainer on what an LBO is and how it works and the mechanical modeling in building a leveraged buyout model from scratch.
BlackRock private credit AUM growth targets to 2028
BlackRock has publicly targeted growing its private markets platform to $1 trillion in AUM by year-end 2028, up from approximately $600 billion at March 31, 2026, per Larry Fink’s remarks at the 2026 Q1 earnings call and the 2026 Investor Day presentation. Private credit is expected to be the largest contributor to that growth, with internal targets reportedly aiming for the private credit book to reach $350 billion to $400 billion by year-end 2028.
Growth drivers behind the $1 trillion target
- Wealth channel penetration. Non-traded BDCs and interval funds sold through wirehouses and RIAs are the largest single vector for AUM growth, targeted to add roughly $80 billion of net inflows across 2026 to 2028.
- Retirement plan access. BlackRock has announced pilot 401(k) target-date funds that include a private markets sleeve, in partnership with Great Gray Trust and other recordkeepers.
- International expansion. HPS had approximately 20 percent of AUM sourced from non-US LPs at close; BlackRock’s global distribution network is expected to grow that share to 30 percent by 2028.
- Fund vintages coming online. HPS Specialty Loan Fund VI, HPS Mezzanine Partners VII, and BlackRock Direct Lending Fund V are all in market or launching in 2026 to 2027 with combined target sizes of roughly $50 billion.
- Adjacent asset-based finance. The ABF segment (equipment finance, consumer receivables, litigation finance, royalties) is expected to double from $32 billion to roughly $60 billion by 2028.
Sources: BlackRock 2026 Investor Day materials, Q1 2026 earnings call transcript.
Risks: competition, spread compression, and default cycle
Three risks are worth tracking for anyone watching the BlackRock private credit story: intensifying competition from insurance-anchored platforms, spread compression as capital piles into direct lending, and a rising default cycle on 2021 to 2023 vintage loans. Each has been called out on recent BlackRock earnings calls and is visible in the TCPC quarterly reports.
Competition from insurance-anchored platforms
Blackstone (Corebridge, AIG, Resolution Life), Apollo (Athene), KKR (Global Atlantic), and Brookfield (American Equity) each have permanent insurance capital measured in the hundreds of billions of dollars. That capital typically prices below third-party institutional money and can hold longer-dated assets more efficiently. BlackRock does not own a life insurer and has publicly stated it does not intend to acquire one, choosing instead to partner (for example with Great Gray Trust and Equitable) for retirement channel distribution. Whether that partner-first model can compete on the largest hold sizes over time is an open question.
Spread compression
Direct lending unitranche spreads have tightened from SOFR plus 600 to 650 basis points on 2023 vintage deals to SOFR plus 475 to 525 basis points on 2026 vintage deals, per Q1 2026 industry surveys. Some of that reflects lower default expectations, some reflects competition. Net returns on unitranche have compressed from 10 to 12 percent to 8 to 10 percent in the same period. That still beats broadly syndicated loan yields by 200 to 250 basis points but leaves less margin for portfolio credit issues.
Default cycle
Non-accrual rates across the largest public BDCs (ARCC, BXSL, TCPC, MFIC) drifted from 0.5 percent of fair value at end of 2022 to roughly 1.5 to 2.5 percent by Q1 2026, per each fund’s quarterly filings. TCPC specifically reported 1.7 percent non-accruals at March 31, 2026, in line with the peer median. A meaningful default cycle would not threaten the firm’s viability but could compress realized returns for a few quarters and slow retail fund inflows.
BlackRock private credit fund vintages in market (2026 to 2027)
BlackRock and legacy HPS funds currently in market or scheduled to launch across 2026 to 2027 represent roughly $50 billion of combined target capital, per Form D filings, Form ADV Part 1A brochures, and industry reporting. The fund lineup blends senior direct lending, mezzanine, asset-based finance, and specialty distressed credit, giving the platform coverage across the capital structure and across the credit cycle.
Fund vintages in market
| Fund | Strategy | Target size | Status |
|---|---|---|---|
| HPS Specialty Loan Fund VI | Junior capital + specialty senior | ~$20B target | In market, first close H2 2025 |
| HPS Mezzanine Partners VII | Mezzanine + junior capital | ~$10B target | Launching H2 2026 |
| BlackRock Direct Lending Fund V | US senior secured direct lending | ~$8B target | Fundraising through 2026 |
| HPS European Asset Value Fund II | European ABF | ~$5B target | Final close H1 2026 |
| HPS Corporate Lending Fund (HLEND) | Non-traded BDC | Perpetual, growing | Monthly subscriptions ongoing |
| BlackRock Private Investments Fund | Multi-strategy interval fund | Perpetual | Ongoing NAV subscriptions |
Sources: HPS Investment Partners Form D filings, HPS Investment Partners Form ADV Part 1A, BlackRock Advisors LLC Form ADV Part 1A, Pensions and Investments coverage, Private Debt Investor.
How fund launches feed the $1 trillion goal
Getting to the $1 trillion private markets target by year-end 2028 requires roughly $400 billion of net inflows across 2026 to 2028, or about $130 billion per year. Private credit is expected to account for roughly $50 billion of that annual pace, with the balance from private equity, infrastructure, and multi-alternative strategies. If HPS Specialty Loan Fund VI hits its $20 billion target with a normal 18-month capital-call schedule, that single fund contributes meaningfully to the 2026 to 2027 inflow number.
Regulatory environment and Basel III Endgame impact
Private credit’s growth has been accelerated by Basel III Endgame capital rules, which raise the cost of holding leveraged loans on bank balance sheets. The final Basel III Endgame rulemaking was finalized in September 2025 by the Federal Reserve, OCC, and FDIC, with phased implementation from July 2026 through July 2028. The rule increases capital requirements on non-investment-grade loans, unfunded commitments, and leveraged lending, effectively pushing more mid-market origination out of banks and into direct lenders like BlackRock and its peers.
What Basel III Endgame changed
- Higher risk weights on leveraged loans. Risk-weight floors rose for non-investment-grade exposures, raising the cost of holding syndicated loans on a bank balance sheet.
- Standardized floors on internal models. Banks using internal ratings-based approaches now face a 72.5 percent output floor versus the standardized approach.
- Operational risk capital. Higher operational risk capital charges reduced return-on-equity on middle-market lending.
- Transition timeline. Phase-in runs July 1, 2026 to July 1, 2028, giving banks time to sell down or run off legacy positions.
Sources: Federal Reserve Basel III Endgame final rule release, September 2025, Office of the Comptroller of the Currency final rulemaking, FDIC joint final rulemaking.
SEC oversight of private credit
Private credit funds and their advisers are regulated by the SEC under the Advisers Act, and each fund files a Form D at first sale and updates Form ADV annually. Recent SEC actions include the 2023 Private Fund Adviser Rules (partially vacated by the Fifth Circuit in Fund Managers v. SEC in June 2024), a 2025 sweep exam on private credit valuation, and expanded Form PF disclosures required in Q1 2026. BlackRock and HPS have been publicly cooperative with the valuation sweep, per statements at the 2026 Investor Day.
Sources: SEC Private Fund Adviser Rules release, August 2023, National Association of Private Fund Managers v. SEC (5th Cir. 2024), SEC Division of Examinations 2025 priorities memo.
BlackRock private credit performance and yield expectations
Net returns across BlackRock’s private credit strategies are targeted at 8 to 10 percent for senior direct lending, 10 to 13 percent for junior capital and mezzanine, and 12 to 15 percent for opportunistic and distressed strategies, per fund marketing materials filed with the SEC. Realized returns since inception across HPS flagship strategies have generally landed inside those bands, though 2020 to 2021 vintages benefited from a strong LBO market and 2022 vintages have compressed as base rates moved.
Realized yield on BlackRock TCP Capital Corp
| Metric | 2023 | 2024 | Q1 2026 (annualized) |
|---|---|---|---|
| Weighted average yield on debt investments | ~13.8% | ~12.5% | ~10.9% |
| Net investment income per share | $1.79 | $1.68 | ~$1.35 |
| Total dividend paid per share | $1.68 | $1.36 | $1.28 base + supplementals |
| NAV per share (year-end) | $11.03 | $10.65 | $10.31 |
Source: TCPC Form 10-K 2024 and Form 10-Q Q1 2026.
The yield trajectory reflects the falling base rate (SOFR) more than portfolio credit deterioration. As SOFR moves lower, the floating-rate loan portfolio resets to a lower absolute yield, though spreads over SOFR have held relatively steady. Non-accruals at 1.7 percent of fair value in Q1 2026 are in line with peers ARCC (~2.0 percent), BXSL (~1.5 percent), and MFIC (~2.5 percent), per each fund’s most recent quarterly filing.
How CT Acquisitions positions LMM sellers when BlackRock capital is a buyer
When a lower-middle-market seller runs a competitive process, BlackRock is rarely the direct lender because the deal is too small. What matters instead is that the private equity or family office buying your business has access to the deepest possible pool of capital when structuring their bid. That access is what turns a 6.0x EBITDA offer into a 7.0x offer.
CT Acquisitions runs full auction processes for sellers with $1 million to $10 million of EBITDA, targeting the private equity platforms, family offices, and independent sponsors most likely to compete for your business. Because those buyers borrow from BlackRock, Ares, Blackstone, and the broader direct lending market, keeping them competing against each other is how you capture the multiple lift from cheap and abundant private credit.
Our positioning is different from marketplace listings and from bulge bracket firms for lower-middle-market sellers:
- Owner-aligned fees. Transparent monthly retainers with the majority of compensation contingent on close, so we are aligned on getting the deal done at the best price, not on listing your business and moving on.
- Deep PE-buyer relationships. Direct relationships with hundreds of PE platforms and family offices actively buying in the LMM band, plus continuous market intelligence on who has fresh capital.
- Full curated buyer outreach. Every process is a real auction with signed NDAs, controlled diligence, and management meetings, not a passive listing.
- Direct advisor delivery. Senior advisors run your process end to end. You do not get handed to a junior associate after signing.
- LMM-only focus. We do not deprioritize a $10 million EV deal because we are also running a $500 million process. Every deal gets senior attention.
If you are considering a sale and want to understand how the current private credit environment is affecting valuations in your sector, schedule a 30-minute exit-readiness call at ctacquisitions.com/contact-us/. We will walk through your current EBITDA quality, the buyer pool most likely to compete for your business, and realistic multiple expectations given current lending conditions. For related reading, see our guides on how to value a business and buy-side M&A advisor engagement.
Frequently Asked Questions
Does BlackRock have a private credit business?
Yes. BlackRock’s private credit business runs approximately $220 billion in AUM as of Q1 2026, making it the fourth largest private credit manager in the world. The platform combines the legacy BlackRock direct lending group with HPS Investment Partners, acquired in a $12 billion stock deal that closed July 1, 2025. It sits inside the Private Financing Solutions unit, led by former HPS CEO Scott Kapnick.
How much did BlackRock pay for HPS Investment Partners?
BlackRock paid approximately $12 billion in stock at announcement (December 3, 2024), rising to roughly $12.5 billion at close on July 1, 2025, with up to $675 million more payable over five years as a performance earnout. The consideration was structured as BlackRock common stock and a new preferred equity class held by HPS partners, with five-year vesting that retained HPS senior investment talent through the integration.
Who runs BlackRock’s private credit business?
Scott Kapnick, co-founder and former CEO of HPS Investment Partners, leads Private Financing Solutions at BlackRock. Michael Patterson is co-head, and Elton Robb heads direct lending. All three report to BlackRock President Rob Kapito. Kapnick also sits on the BlackRock Global Executive Committee. James Keenan continues to lead the legacy BlackRock Global Credit business, with dotted-line coordination to Private Financing Solutions.
What is BlackRock TCP Capital Corp?
BlackRock TCP Capital Corp (NASDAQ: TCPC) is BlackRock’s publicly traded business development company. It held approximately $2.1 billion of net asset value and $3.3 billion in total investments at March 31, 2026, spread across 146 portfolio companies. TCPC pays a base quarterly dividend of $0.32 per share and gives public equity investors direct exposure to BlackRock’s private credit origination without needing to qualify as an accredited investor.
Is BlackRock private credit bigger than Blackstone or Apollo?
No. As of Q1 2026, BlackRock is the fourth largest private credit platform at approximately $220 billion in AUM, behind Blackstone Credit and Insurance (~$465 billion), Apollo (~$405 billion), and Ares Management (~$335 billion). If GIP infrastructure debt and CLO management are included, BlackRock’s total private debt figure rises to about $290 billion, still behind Blackstone and Apollo but closer to Ares.
Can retail investors invest in BlackRock private credit?
Yes, through three main vehicles. Public TCPC trades on NASDAQ with no minimum beyond one share. HPS Corporate Lending Fund (HLEND) is a non-traded BDC available through financial advisors with typical minimums around $2,500. BlackRock also runs interval funds including BlackRock Private Investments Fund and BlackRock Multi-Alternative Growth Fund, offered through advisor platforms with varying minimums. All non-listed vehicles have quarterly liquidity limited to 5 percent of NAV.
What is BlackRock’s private credit AUM target?
BlackRock has publicly targeted growing its private markets AUM to $1 trillion by year-end 2028, up from approximately $600 billion at Q1 2026. Private credit specifically is targeted to grow from $220 billion to a range of $350 billion to $400 billion in the same period, per commentary at the 2026 Investor Day. Growth is expected to come from wealth channel penetration, retirement plan access, international expansion, and new fund vintages.
Does BlackRock lend to lower-middle-market businesses?
Rarely directly. BlackRock’s core direct lending platform focuses on borrowers with $30 million to $250 million EBITDA and hold sizes of $75 million to $750 million. Deals below $75 million in senior debt or below $30 million EBITDA are usually below the platform’s minimum. TCPC will occasionally take positions in the $10 million to $50 million range. For most lower-middle-market financing needs ($5 million to $50 million EV businesses), middle market direct lenders such as Twin Brook Capital, Monroe Capital, and Golub Capital are the practical options.