HPS Investment Partners Raises $17B for Junior Credit Flagship Fund

Credit-focused alternative investment manager HPS Investment Partners closed its fifth flagship junior capital solutions strategy – HPS Strategic Investment Partners V – at $17 billion, which includes $12 billion in equity commitments, and easily surpassing its $9.5 billion goal.

HPS now has more than $100 billion in assets under management as it continues to establish a formidable footprint in the debt markets.

HPS has invested more than $36 billion through its junior capital solutions strategy since it was founded in 2008. The new fund has already deployed about $6 billion across 24 investments, providing customized financing solutions for large, established businesses in North America and Western Europe.

“We believe the current market environment presents a rich set of opportunities for us to pursue as companies continue to seek strategic partners and scaled platforms that can develop and execute bespoke financing solutions with speed and certainty,” said Scot French, Governing Partner of HPS and Portfolio Manager of the Fund.

Investors have been drawn to the attractive returns offered by private credit funds, with riskier loans such as junior debt and corporate bonds often yielding 14% or more. While it may not be returns offered by private equity funds, it has drawn interest from pension funds and endowments after a decade of ultra-low interest rates.