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BlackRock's HPS Bad Loan Zero-Out Sparks Credit Fraud Concerns: Report

Summary generated with AI, editor-reviewed
Heartspace News Desk
Source: Bloomberg.com
TL;DR

BlackRock acquired HPS Investment Partners, after which HPS executives found a major impairment in their portfolio. This impairment involved a loan HPS and BNP Paribas SA gave to companies managed by Bankim Brahmbhatt, where HPS held the riskiest portion aiming for high returns, secured by receivables from telecoms.

Key takeaways

  • Following BlackRock Inc
  • 's $12 billion acquisition of HPS Investment Partners, executives at the private credit firm discovered a significant impairment in one of its investments, as reported by Bloomberg
  • HPS had previously collaborated with BNP Paribas SA to extend hundreds of millions of dollars in financing to a group of companies managed by Bankim Brahmbhatt
Following BlackRock Inc.'s $12 billion acquisition of HPS Investment Partners, executives at the private credit firm discovered a significant impairment in one of its investments, as reported by Bloomberg.com. HPS had previously collaborated with BNP Paribas SA to extend hundreds of millions of dollars in financing to a group of companies managed by Bankim Brahmbhatt. This loan was reportedly secured by receivables from major telecommunications providers. HPS assumed the highest-risk tranche of the financing, seeking double-digit returns on its investment.

Related Topics

BlackRockHPS Investment Partnerscredit fraudacquisitionloanprivate creditinvestment

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