Cramer's Morning Take: BlackRock 12/3/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Jeff Marks (0:10)

Let's turn to BlackRock next. So they're acquiring HPS Investment Partners, 12 billion. It's an all stock deal. This is going to make BlackRock a top five private credit manager with enhanced ability to serve clients, combined platform 220 billion in pro forma private credit assets. It's obviously a very hot area is private credit.

Jim Cramer (0:33)

And they took stock, which is important because they're sticking around. They'll be consolidated. This will be a private credit will be one of the menus that you get where you could possibly be involved in their loans. I think that the most important thing that's coming in my discussion with this company is Larry Fink is so happy. He's not going anywhere. He's my age. He's not going anywhere. He's very excited and energized. I think that this is going to be a boon for people who watch the show, watch our show, because they're going to let you in on this. It'll be a nice option to have for some of your cash. I think that, as I said yesterday, you want to buy this stock right here. I think that Larry feels it could go to 1,400, not that far from, not that long from now. Now that it's got the same assets as the Blue Owls and the Aries and their best company in those times.

Jeff Marks (1:21)

Right, and that's part of the argument, right? The companies you mentioned, they trade at a higher multiple relative to BlackRock and now adding this, beefing up their private credit exposure. You can narrow the discount, get a re-rating.

They expect the deal to be modestly accretive to adjusted earnings per share in the first full year. And yeah, I mean, private credit, private debt, very hot area. You know, retail and institutional demand accelerating. By the way, the banks can't really do this because they have rising capital requirements.

Jim Cramer (1:52)

This is putting them, this is putting these guys in the same league as Blackstone and Blue Owl. If that's the case, then the stock should be trading at 1,400. That's why I'm urging you to buy it.

Jeff Marks (2:04)

And they continue to see a lot of opportunity for infrastructure debt as well. That's a big focus of theirs.

Jim Cramer (2:09)

That is obviously the future. We have to grow our way out of this deficit. It's going to have to be building things.

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SPEAKER_3 (2:34)

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