HPS Investment Partners has closed its latest mezzanine fund at about $9 billion in equity commitments, beating its target of $8 billion. As a result of the fund-closing, Mezzanine Partners 2019 Fund has total investable capital of over $11 billion. The fund will invest primarily in junior debt with a focus on North America and Western Europe.
NEW YORK, Oct. 5, 2020 /PRNewswire/ — HPS Investment Partners, LLC (“HPS” or the “Firm”), a leading global investment firm with $65 billion in assets under management, today announced the closing of its Mezzanine Partners 2019 Fund (the “Fund”) with total investable capital of over $11 billion, including approximately $9 billion in equity commitments, which exceeds the Fund’s target equity capitalization of $8 billion.
As one of the largest dedicated mezzanine funds globally, the Fund will invest primarily in junior debt as well as select equity-like instruments, across a broad array of industries with a focus on North America and Western Europe. This mandate is consistent with HPS’s predecessor fund, Mezzanine Partners Fund III (“Fund III”), which held its final close in December 2016 with approximately $6.5 billion of commitments. Fund III completed its investment period on September 30, 2020.
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 a consistent stream of investment opportunities, many of which have been proprietary. In 2020, HPS’s private credit platform has invested over $12 billion in 54 portfolio companies. The Fund, which began investing in April 2019, is approximately 50% invested.
“The current investment environment continues to create opportunities for firms like HPS that have global platforms with scale to provide corporates and private investment firms with innovative and flexible capital solutions to support their strategic needs,” said Scot French, Governing Partner of HPS and Portfolio Manager of the Fund. “We look forward to continuing to pursue these opportunities on behalf of the Fund’s investors as we work diligently to protect and grow their capital.”
Scott Kapnick, Governing Partner and Chief Executive Officer of HPS, said, “It is clear that a broad range of institutional investors around the globe continue to express strong demand for established, non-investment grade credit platforms that offer outstanding investment talent, disciplined risk management and tailored risk/return solutions. We greatly appreciate the patience and persistence of our investors, and their commitment to this Fund during the Covid-19 pandemic.”
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 $65 billion of assets under management as of October 2020. For more information, please visit www.hpspartners.com.