Ex-Goldman Banker's $10bn Private Credit Firm HPS Considers Sale or IPO.

Scott Kapnick, former Goldman Sachs investment banking head and founder of HPS Investment Partners, is exploring options for his $10bn private credit firm. HPS, managing nearly $120bn in assets, has become a dominant player in the $2tn private credit market. The firm is considering three paths: selling a stake to Middle Eastern sovereign wealth funds, launching an initial public offering, or pursuing an outright sale, potentially to BlackRock.

HPS's rise to prominence came as traditional banks retreated from risky lending, allowing the firm to fill the void. The private credit boom has sparked interest from mainstream asset managers and alternatives players looking to expand their offerings. HPS's founders have been preparing for this moment for years, working with major banks on IPO plans and exploring merger possibilities.

While BlackRock appears to be the primary focus for a potential sale, there is also interest in attracting JPMorgan, HPS's former owner. The ongoing talks with potential suitors could still fall through, which is why the IPO process has progressed significantly. Bankers have indicated that HPS could restart the IPO process after the US election in November if a sale doesn't materialize.

Report by Financial Times