Published Mon, Aug 25, 2025 · 11:29 AM
[HONG KONG] BlackRock paused fundraising earlier this year for its latest Asian private credit strategy amid its merger with HPS Investment Partners, sources familiar with the matter said, adding to uncertainties for the firm’s ambitions for the asset class in the region.
Fundraising for the firm’s third Asia-Pacific private credit fund came to a standstill earlier in 2025 following the announcement in December that BlackRock was buying private credit firm HPS, according to the sources, who asked not to be identified discussing private matters. The New York-based firm completed its acquisition of HPS on Jul 1.
The pause adds to recent challenges. A key investor in BlackRock’s private funds, Arch Capital Group, is in talks to sell at least US$350 million of certain stakes following disappointing performance in some of them and a series of senior departures, Bloomberg News reported last month. Moreover, BlackRock Asia-Pacific Private Credit Opp. Fund II had only secured less than half of its US$1 billion target.
Meanwhile, BlackRock and Abu Dhabi state-owned wealth fund Mubadala Investment mutually agreed to unwind their private credit partnership due to difficulty in sourcing deals, other sources familiar with the matter said in June.
BlackRock was targeting to raise about US$1 billion for the third Asia-Pacific private credit fund, and fundraising had started in the fourth quarter of 2023, the sources said. Internal discussions with HPS executives on how to proceed are poised to take place but it’s unclear when, they added. BlackRock declined to comment.
BlackRock’s merger with HPS came as part of a larger push by its co-founder Larry Fink to cement the firm’s future in private markets. The asset manager also recently set its first-ever firmwide target for private market fundraising at US$400 billion by 2030. BLOOMBERG
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