(Bloomberg) -- BlackRock Inc. is close to an agreement to buy private credit group HPS Investment Partners, as the world’s largest asset manager tries to compete in the fast-growing alternatives space, the Financial Times reported. 

The two sides have agreed on the broad outline of the deal with a goal of announcing general terms after the Thanksgiving holiday, the newspaper reported on Thursday, citing people familiar with the matter. 

HPS had been working toward an initial public offering earlier this year that would have valued it at about $10 billion. Two of the people told the FT the final price would be closer to $12 billion.

Representatives for BlackRock declined to comment to Bloomberg. HPS didn’t respond to a request for comment, the FT said. 

Bloomberg reported in October that BlackRock was in advanced talks to buy HPS, which could still opt for an IPO or minority stake sale if the parties fail to agree on valuation. 

A deal would leave BlackRock, which managed $11.5 trillion at the end of the third quarter, with more than $500 billion in alternative assets. HPS manages more than $100 billion, making it one of the largest independent managers in the surging private-credit market. 

--With assistance from Silla Brush.

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