HPS Investment Partners Announces Strategic Minority Investment by Dyal Capital
New York – July 3, 2018 – HPS Investment Partners (“HPS” or the “Firm”), a leading global credit investment manager with over $45 billion in assets under management, today announced that it has sold a passive, non-voting minority equity stake to Dyal Capital Partners (“Dyal”), a division of Neuberger Berman. Terms of the investment were not disclosed.
Dyal’s passive minority investment will provide the Firm with additional resources to pursue strategic initiatives and continue its significant alignment with clients. The investment from Dyal will have no impact on the day-to-day management or operations of HPS. The Firm’s investment and decision-making processes will also remain unchanged.
“We are delighted to have Dyal as a long-term investment partner. Their experience and proven track record of supporting marquee alternative asset managers will be helpful to us as we continue to strategically build and scale our platform,” said Scott Kapnick, Chief Executive Officer of HPS Investment Partners.
“HPS is a world-class investment firm that possesses remarkable depth and breadth of expertise across the public and private global credit markets,” said Michael Rees, Head of Dyal Capital Partners. “The firm has distinguished itself through its exceptional management and investment team, and we believe they remain strategically positioned to further capitalize on a broad array of unique investment opportunities across the credit spectrum. We look forward to supporting Scott and the entire HPS team in the years to come.”
HPS has experienced significant growth since its founding in 2007. In particular, its private credit platform has risen to become amongst the most prominent in the industry. As one of the largest dedicated mezzanine investors globally, HPS has invested a total of $13 billion in 82 companies to date. The Firm’s direct lending business is also amongst the largest globally, having invested $21 billion across 230 companies to date. HPS’s private credit platform includes sector-focused strategies designed to seek opportunities across credit cycles, including energy and power and real estate.
In Europe, HPS has expanded its private credit capabilities, including mezzanine debt, direct lending and leasing platforms. The Firm has also continued to broaden its presence across the public credit markets, with investment opportunities spanning collateralized loan obligations, leveraged loans, broadly syndicated non-investment grade corporate credit securities, and, most recently adding capabilities in Asia credit.
Evercore acted as financial advisor to HPS Investment Partners.
About HPS Investment Partners
HPS Investment Partners is a leading global investment firm that seeks to provide creative capital solutions and generate attractive risk-adjusted returns for our clients. We manage various strategies across the capital structure that include syndicated leveraged loans and high yield bonds to privately negotiated senior secured debt and mezzanine investments, asset-based leasing and private equity. The scale and breadth of our platform offers the flexibility to invest in companies large and small, through standard or customized solutions. At our core, we share a common thread of intellectual rigor and discipline that enables us to create value for our clients, who have entrusted us with over $45 billion of assets under management as of March 2018. For more information, please visit www.hpspartners.com.
About Dyal Capital Partners
Dyal Capital Partners, a division of Neuberger Berman Group, seeks to acquire minority equity interests in institutional alternative asset management businesses worldwide. Dyal Capital Partners was established in 2011 and currently has 32 minority partnerships. For more information, please visit www.dyalcapital.com.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 20 countries, Neuberger Berman’s team is approximately 1,900 professionals. For five consecutive years, the company has been named to Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $299 billion in client assets as of March 31, 2018. For more information, please visit our website at www.nb.com.
Dan Hunter, Prosek Partners
Kate Sylvester, Prosek Partners