HPS Closes $21B Private Credit Fund

HPS Investment Partners closed its Specialty Loan Fund VI (SLF VI) at $21.1 billion, with $14.3 billion from global institutions and ‘available borrowings.’ The commingled fund raised $10.4 billion, above its $7.5 billion target; the remainder was raised through funds-of-one, separately managed accounts, and co-investment vehicles.

The previous vintage of the fund closed at $11.7 billion and a total of $15.4 billion of investable capital in September 2021.

To date, SLF VI has invested over $2.5 billion in 29 investments. This is HPS’ first fund close in 2024. Last year, the firm closed its second Core Senior Lending Fund and related funds for $10 billion and held the $17 billion close of Strategic Investment Partners V.

“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,” Scott Kapnick, CEO of HPS. “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.”

Along with its Core Senior Lending Platform, HPS’s senior direct lending platform has invested approximately $100 billion in over 639 investments since 2010.

HPS, headquartered in New York, manages a wide range of capital structure strategies, including privately negotiated senior debt, junior capital solutions, liquid credit, asset-based finance, and real estate. As of April 2024, the firm had over $114 billion in assets under management.