(Bloomberg) -- HPS Investment Partners is offering employees grants that vest over five years to encourage them to stay on after being acquired by BlackRock, according to an investor letter seen by Bloomberg News.
The “material incentive grant” is intended to reward staff for their past and future contributions to the business, the letter, which was sent to investors on Tuesday, states. The grants vest over five years “to encourage long-term retention.”
BlackRock Inc. said on Tuesday that it had agreed to buy HPS Investment Partners in an all-stock deal valued at roughly $12 billion, with HPS founders Scott Kapnick, Scot French and Michael Patterson leading a new private financing solutions business unit. Part of the transaction would be paid at closing and another part would be deferred for five year or so.
Up to $675 million would be used to fund an equity retention pool for HPS employees, the statement added.
A spokesperson for HPS didn’t immediately respond to requests for comment. A representative for BlackRock declined to comment.
The HPS investor letter says that the credit firm’s leadership, partners and employees will continue to have more than $1.2 billion of committed and invested capital in the fund manager’s investment strategies.
“We believe that having access to the broader suite of BlackRock capabilities will enhance our ability to offer holistic solutions for both corporates and sponsors, further solidifying our position as a scaled and creative financing partner with capital flexibility,” the letter stated.
--With assistance from Francesca Veronesi and Paula Seligson.
©2024 Bloomberg L.P.