HPS Investment Partners, a leading global credit investment firm with about $114 billion of assets under management (AUM), announced the final close of Specialty Loan Fund VI (SLF VI), with $21.1 billion in investable capital.
This includes $14.3 billion in equity commitments from a range of large and sophisticated global institutions including new and repeat HPS investors and available borrowings. Of the equity commitments, about $10.4 billion were raised in the commingled fund, exceeding its original target of $7.5 billion, and the rest was raised in funds-of-one, separately managed accounts, and co-investment vehicles.
So far, SLF VI has invested over $2.5 billion of its investable capital across 29 investments. This fund will continue to pursue unique opportunities to deploy its capital while seeking attractive returns for its investors by utilizing HPS’ scale, relationships, and analytical and structuring capabilities to originate and invest in a range of capital solutions for borrowers across sectors and geographies.
Specialty Direct Lending – which is one of the two HPS flagship senior direct lending strategies – uses an opportunistic investment approach that leans on its structuring expertise to source and execute investment opportunities that can command a premium due to perceived business or transactional complexity. Along with its Core Senior Lending Platform, HPS’ other senior direct lending strategy focused on senior lending to stable and established middle market and large-scale companies, HPS’s senior direct lending platform has invested about $100 billion in over 639 investments since 2010.
KEY QUOTES:
“As one of the largest and longest-tenured direct lending platforms, we are well positioned to capitalize on the rapidly growing demand for bespoke capital solutions from companies as they execute on their business strategies through evolving market cycles. Our analytical rigor and ability to navigate complexity quickly, combined with our scale and relationships, enable us to see a variety of transactions with leading sponsor-backed, non-sponsor backed, and public companies, and selectively execute on those that we believe offer the most attractive risk-adjusted returns for our clients.”
– Michael Patterson, a Governing Partner of HPS and the Portfolio Manager for HPS’s direct lending funds
“This latest milestone, which follows two record fund closes in 2023, demonstrates the strong momentum across our business and our position as a partner of choice to the world’s largest and most sophisticated institutions, as they initiate and grow private credit exposure to achieve their investment objectives. We are honored by our investors’ support and will continue to diligently invest and protect their capital. Private credit plays an increasingly vital role in the development of Western capital markets and is rapidly expanding into investment grade and asset-backed financings. We look forward to applying the same experience and discipline that made us successful with our flagship funds and continuing to provide our investors with a comprehensive set of solutions across the risk/return continuum.”
– Scott Kapnick, Chief Executive Officer of HPS
