Top Private Credit M&A Deals of 2024 for Alternative Credit Investors
This year has been quite the whirlwind for asset managers looking to scoop up private credit portfolios. As banks step back, alternative financing options are in high demand.
In a recent major move, BlackRock made headlines by announcing its acquisition of HPS Investment Partners for a hefty $12 billion in early December. This deal will pave the way for a new private financing solutions business unit, led by HPS co-founders Scott Kapnick, Scot French, and Michael Patterson. The acquisition is expected to boost BlackRock’s fee-paying assets under management and management fees by around 40% and 35%, respectively. The transaction is set to close in mid-2025 and should positively impact BlackRock’s adjusted earnings per share in the first year.
Moving to Australia, CapitaLand Investment made waves by acquiring the property and corporate credit investment management business of Wingate Group for AUS$200 million. This purchase solidified CapitaLand Investment’s standing as a major player in the private credit investment landscape.
In another nod to expansion, Stonepeak agreed to acquire Boundary Street Capital, a private credit specialist, to enhance its investment capabilities in credit, digital infrastructure, and technology. Similarly, J.C. Flowers & Co made moves by acquiring Pepper Advantage from Pepper Global, a credit management firm, in a transaction set to close in the first quarter of 2025.
October saw Ares Management jump into the acquisitions game by announcing its plans to acquire GLP Capital Partners, excluding its operations in Greater China, for $3.7 billion. This deal will significantly increase Ares’ assets under management to approximately $96 billion, solidifying their presence across various regions.
On the European front, BNP Paribas expanded its wealth management business by acquiring HSBC’s private banking business in Germany, focusing on high-net-worth individuals in the North Rhine-Westphalia area.
2024 also saw Blue Owl acquire Atalaya Capital Management, broadening its alternative credit and asset-based finance capabilities with a $450 million deal. Atalaya’s extensive portfolio of asset-based credit investments across various sectors will bolster Blue Owl’s standing in the market.
In a move to expand its reach in Spain and Europe, Arrow Global Group acquired Amitra Capital, a credit manager specializing in European non-performing loans and real estate investments. Amitra’s assets under management of approximately €4 billion are now in good hands with Arrow Global Group.
Wrapping up the year, Third Point announced its acquisition of AS Birch Grove, a diversified alternative credit fund manager, with the deal closing early next year. This acceleration of deal activity in 2024 indicates a promising outlook for the alternative credit sector in 2025 as private credit becomes increasingly popular with investors.
