On Monday, November 17, 2025, U.S. prosecutors announced a probe into a group of telecom companies that had received loans from BlackRock’s private‑credit arm, HPS Investment Partners. The investigation follows allegations that HPS lent more than $400 million—some estimates suggest up to $500 million—backed by receivables that appear to have been fabricated.
The alleged fraud dates to at least 2018 and involves forged invoices and contracts used as collateral. Companies tied to former HPS executive Bankim Brahmbhatt, including Carriox Telecap and Bridgevoice Inc., filed for bankruptcy in August 2025, halting ongoing legal actions. The probe is examining the validity of the receivables and the impact on the borrowers’ financial statements, with potential implications for HPS’s underwriting practices.
BlackRock completed its acquisition of HPS on July 1, 2025, adding roughly $12 billion in assets under management to its private‑credit portfolio. The fraud was uncovered shortly after the deal closed, raising questions about integration oversight and due‑diligence processes. BNP Paribas, which had assisted HPS in financing the loans, disclosed a €190 million ($220 million) charge in Q3 2025 related to a “specific credit situation,” likely tied to the same case.
The probe could trigger regulatory scrutiny of HPS’s lending practices and damage BlackRock’s reputation in the private‑credit market. Analysts note that BlackRock’s CFO has previously downplayed recent bankruptcies as isolated incidents, but the scale of the alleged fraud and its timing post‑acquisition may erode confidence in the firm’s risk controls. A potential write‑off of $150 million for HPS could affect BlackRock’s balance sheet and future private‑credit strategy.
BlackRock has not issued a formal response to the investigation. The outcome will be closely watched by investors and regulators, as it could influence BlackRock’s standing among institutional investors and shape the broader private‑credit market’s regulatory environment.
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