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

Scott Kapnick, former Goldman Sachs investment banking head and founder of HPS Investment Partners, is considering a transformational deal for his private credit firm. With nearly $120 billion under management, HPS has become a dominant player in the $2 trillion private credit market, filling the void left by traditional banks in risky corporate lending.

Kapnick is exploring three options: selling a stake to Middle Eastern sovereign wealth funds, pursuing an initial public offering, or selling the entire firm, potentially to BlackRock. The latter option could be the most lucrative for HPS's founders, who have been preparing for this moment for years.

HPS's success reflects the broader growth of private credit, which has become a driving force in private investments. The firm's potential sale or IPO comes amid a flurry of dealmaking in the sector, as asset managers seek to expand their presence in this lucrative market.

Report by Financial Times