"BlackRock isn't seeing any cockroaches scurrying out of its private credit portfolio yet. The $14 trillion asset manager has become a major player in the private lending space after it acquired HPS at the end of 2024. The firm has been focused on fundraising for private markets, and CEO Larry Fink said Thursday during BlackRock's earnings call that the firm's distribution team was pitching HPS offerings to advisors for wealthy people at wirehouses like Morgan Stanley and Merrill Lynch."
"BlackRock CFO Martin Small said the manager deployed $25 billion into private-market investments in 2025, including in private lending, and sees "generally stable credit conditions." Defaults are rising, he said, but that is to be expected after a period of historically low defaults, thanks to low interest rates. "Returning to normal defaults is something we expect," he said, adding that "context is critical" when looking at headlines about bankruptcies."
BlackRock significantly expanded into private credit by acquiring HPS at the end of 2024 and has been actively fundraising for private markets. The firm, with $14 trillion in assets, has pitched HPS offerings to advisors at major wirehouses. Private credit strategies attracted more than $220 billion in 2025, while several high-profile defaults raised concerns about hidden risks. BlackRock deployed $25 billion into private-market investments in 2025 and focuses on lending to larger companies with lower default probability. Fitch recorded a 12-month private credit default rate of 5.7% at the end of November, up from 5.2%.
Read at Business Insider
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