HPS Garners $7.3 Billion for Latest Senior Direct-Lending Fund

• Firm targets refinancing needs as bank lenders retreat
• HPS has already committed 57% of the fund’s total capital

HPS Investment Partners raised $7.3 billion in equity commitments from institutional investors for its second private credit fund dedicated to senior corporate loans.

The Core Senior Lending Fund II will have around $10 billion of available capital, including leverage, and will primarily originate floating rate, senior secured loans to private and public companies, according to a statement seen by Bloomberg.

HPS has become one of the biggest players in the $1.5 trillion private credit market. Like many of its peers, it’s looking to capitalize on traditional banks’ retreat from funding risky corporate debt, especially as rising interest rates and fears of a recession make it more difficult for companies to access the broadly syndicated debt markets.