NEW YORK -- HPS Investment Partners, LLC ("HPS"), a leading global investment firm with a focus on non-investment grade credit, today announced that it has completed fundraising for Mezzanine Partners Fund III (the "Fund") with total capital of $6.6 billion, exceeding the initial target of $5.5 billion.
As one of the largest dedicated mezzanine funds globally, the Fund will invest primarily in junior debt and equity securities across a broad set of industries with a focus on North America and Western Europe, consistent with its 2013 predecessor fund, Mezzanine Partners Fund II ("Fund II"), which held its final close in March 2013 with $4.4 billion of commitments. Fund II completed its investment period in June 2016.
Over the past nine years, HPS's mezzanine platform has invested in approximately 60 portfolio companies for a total of $8.8 billion. The Firm's focus on building a global team with deep and broad sector and geographic expertise continues to provide the platform with a strong foundation for consistent flow of investment opportunities, many of which have been proprietary.
“We continue to see growing demand for creative, flexible capital solutions from our corporate and private equity partners seeking scale and certainty for their financing needs,” said Scot French, Partner of HPS and Head of HPS's Mezzanine Fund. “We are grateful for the enthusiastic support that we have received from both existing and new investors, and look forward to delivering on our core objectives of generating attractive risk-adjusted returns while focusing on preservation of capital.”
Scott Kapnick, Chief Executive Officer of HPS, said, “It is evident that public and corporate pensions, sovereign wealth funds, insurance companies and family offices continue to have a strong appetite for non-investment grade credit platforms, such as HPS, that offer global reach, world-class investment talent and outstanding risk management capabilities.”