HPS Investment Partners, a global investment firm with $65 billion in assets under management, closed its Mezzanine Partners 2019 Fund with total investable capital of more than $11 billion, including approximately $9 billion in equity commitments, which exceeded the fund’s target equity capitalization of $8 billion.
The fund will invest primarily in junior debt as well as select equity-like instruments, across an 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, which held its final close in December 2016 with approximately $6.5 billion of commitments. Fund III completed its investment period on Sept. 30, 2020.
In 2020, HPS’s private credit platform has invested more than $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,” Scot French, governing partner of HPS and portfolio manager of the fund, said. “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.”
“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,” Scott Kapnick, governing partner and CEO of HPS, said. “We greatly appreciate the patience and persistence of our investors, and their commitment to this fund during the COVID-19 pandemic.”
