BlackRock Halted Fundraising for Latest Asia Private Credit Fund Amid HPS Merger.

BlackRock has paused fundraising for its latest Asian private credit fund after merging with HPS Investment Partners earlier this year. The firm's third Asia-Pacific private credit fund halted fundraising in 2025 following the merger. The decision is likely due to a strategic shift in the firm's focus, but the exact reason is unclear.

BlackRock Inc., the world's largest asset manager, has paused fundraising for its latest Asian private credit strategy, the third Asia-Pacific private credit fund. This decision comes amid the firm's merger with HPS Investment Partners, which was announced in December 2024 and completed on July 1, 2025 [1][2][3][4].

The pause in fundraising for the $1 billion target fund, which started in the fourth quarter of 2023, adds to recent challenges for BlackRock's private credit ambitions in the region. A key investor, Arch Capital Group, is in talks to sell at least $350 million of certain stakes following disappointing performance in some of BlackRock's private funds and a series of senior departures [1][2]. Additionally, BlackRock and Abu Dhabi's state-owned wealth fund, Mubadala Investment Co., mutually agreed to unwind their private credit partnership due to difficulty in sourcing deals [1][2].

The merger with HPS, a $165 billion credit investment manager, is part of BlackRock's larger push to cement its future in private markets. The firm has set a firmwide target for private market fundraising at $400 billion by 2030. However, the exact reason for the pause in fundraising for the latest Asian private credit fund remains unclear, with internal discussions with HPS executives on how to proceed still pending [1][2][3][4].

BlackRock declined to comment on the matter, leaving investors and financial professionals uncertain about the future of the firm's private credit strategy in Asia. The pause in fundraising, coupled with recent setbacks, may indicate a strategic shift in BlackRock's focus or a need to reassess its approach to private credit in the region.

References:
[1] https://www.businesstimes.com.sg/companies-markets/banking-finance/blackrock-paused-fundraising-latest-asia-private-credit-fund
[2] https://www.bloomberg.com/news/articles/2025-08-25/blackrock-paused-fundraising-for-latest-asia-private-credit-fund
[3] https://www.ainvest.com/news/blackrock-halts-fundraising-latest-asian-private-credit-fund-hps-merger-uncertainty-2508/
[4] https://www.caproasia.com/2025/08/25/world-largest-asset-manager-12-5-trillion-blackrock-stopped-fundraising-for-3rd-asia-private-credit-fund-blackrock-asia-pacific-private-credit-opportunities-fund-iii-blackrock-uae-abu-dhabi-330/