Global credit shop HPS Investment Partners closed its second Core Senior Lending Fund (CSL II) and associated funds with $10 billion in investable capital.
The New York-based firm, originally formed as a division of Highbridge Capital Management within J.P. Morgan Asset Management and known as Highbridge Principal Strategies, has rapidly grown its assets to $101 billion. The senior lending fund close follows the $17 billion close of HPS’ Strategic Investment Partners V in April.
“We were extremely pleased with the robust reception CSL II received from a wide range of the world’s most sophisticated institutions who see the incredible opportunity presented by today’s private credit markets,” added Scott Kapnick, chief executive officer of HPS. “We appreciate our clients’ support and look forward to helping them achieve their investment goals while working with leading private and public companies on bespoke financial solutions to enable them to achieve their business objectives.”
CSL II invests in privately originated, floating rate, senior secured loans to leading, well-established and diversified businesses across primarily North America, Western Europe and Australia/New Zealand including sponsored, non-sponsored and public borrowers. So far, the fund has committed 57% of the capital across 54 investments.
“Since its inception in 2010, our direct lending platform has consistently differentiated itself through its agility, tailored structuring expertise, relationships and sourcing capabilities, and scale. CSL II significantly enhances our ability to deliver compelling investment solutions for sophisticated institutional investors and address the capital needs of a wide range of borrowers across sectors and geographies,” commented Michael Patterson, a governing partner of HPS and the portfolio manager for HPS’s direct lending funds.
“As markets continue to grapple with sustained volatility and the retreat of some traditional lenders, we are seeing a robust investment opportunity set and believe this will prove to be an especially attractive period for sophisticated, well-capitalized, and resourced private credit providers, such as HPS and our investors,” he added.
