NEW YORK -- HPS Investment Partners, LLC ("HPS"), a leading global investment firm with a focus on non-investment grade credit, today announced the closing of its first European Asset Value Fund ("the Fund") with aggregate capital commitments of €800 million. The Fund will seek to take advantage of strategic shifts in the European specialty finance sector, where regulatory-induced deleveraging is leading banks to divest of capital intensive and non-core portfolios and platforms.
The Fund's seasoned team, which has more than 40 years of experience investing across a broad array of financial and real-asset platforms, will focus on building a diversified portfolio of performing assets, as well as origination and infrastructure. Specifically, the Fund will invest in leases and loans backed by assets and receivables, including equipment, information technology, automobiles, aircraft, trucks and other transportation assets. Acquiring and developing scalable platforms will also allow the Fund to source new assets and provide direct financing to European small and medium-sized enterprises ("SME") and consumers.
“We appreciate the confidence that our investors have placed in the Fund's investment strategy and our ability to identify and capitalize on unique opportunities,” said Jonathan Ashley and Justin Staadecker, Co-Portfolio Managers of HPS's European Asset Value Fund. “We believe that the current market conditions in Europe will afford us the opportunity to acquire a highly diverse pool of performing assets alongside related origination and servicing platforms in order to deliver attractive risk adjusted returns to our investors while providing capital to the European SME community.”
Scott Kapnick, Chief Executive Officer of HPS, said, “Regulatory induced deleveraging of the European banking sector has created a strategic opportunity to acquire performing non-core asset portfolios and platforms, giving proven and sophisticated investment firms, such as HPS, the ability to disintermediate the historical control banks have held over the financing markets in Europe. We are grateful for our investors' support and look forward to opportunistically investing this new Fund across a diverse range of assets and businesses.”