Global investment firm HPS Investment Partners has raised $21.1bn for its flagship Specialty Loan Fund VI, which includes commitments from investors totalling $14.3bn, according to a report by the Financial Times.
The fundraising, which also incorporates billions of dollars sourced from bank loans, marks one of the largest private credit funds raised to date, and an overall record for HPS since it was founded in 2007.
HPS’s Specialty Loan Fund VI targets companies requiring capital in challenging financial situations, offering loans with interest rates approximately 7 percentage points above the Sofr benchmark, currently yielding between 12% and 13%.
Recent transactions include a €1.5bn loan to One Rock Capital for the buyout of Constantia and an $800m loan for medical device manufacturer Tecomet.
According to the FT’s sources, HPS is considering options including a potential public listing or merger with another prominent private investment group.
While HPS has reportedly filed documents with securities regulators in preparation for a potential IPO to facilitate initiatives like rewarding senior staff or acquiring competitors, the FT’s sources have noted that no final decision has been made.
Founded in 2007 by Scott Kapnick, Scot French and Michael Patterson, HPS originated within JPMorgan Chase’s asset management division before becoming an independent entity in 2016. The firm currently manages $114bn.
