HPS Investment Partners

HPS Investment Partners is a leading global alternative asset manager with a primary focus on non-investment grade credit. Headquartered in New York City, the firm originated as Highbridge Principal Strategies, a division of Highbridge Capital Management, before spinning out in 2007. HPS has established itself as one of the largest and most influential players in the private credit market, managing approximately $118 billion of assets as of March 2024. Their extensive platform provides flexible capital solutions to companies across a wide spectrum of industries and geographies.

The firm's investment strategies are diverse, encompassing direct lending, opportunistic credit, distressed debt, syndicated loans, high yield bonds, and real estate credit. Through these strategies, HPS aims to generate attractive risk-adjusted returns by providing financing to companies that may not have access to traditional bank lending or public capital markets. Their approach involves deep fundamental credit analysis and a focus on complex situations, often partnering with private equity sponsors or directly with management teams to facilitate growth, recapitalizations, acquisitions, or special situations.

It is important to note that HPS Investment Partners operates distinctly from a traditional venture capital firm. While they provide capital to businesses, their core business revolves around debt financing rather than equity investments in early-stage startups. Consequently, the concept of a "first cheque" in the venture capital sense, typically referring to an equity stake in a nascent company, does not directly apply to HPS's primary investment model. Their typical "investments" are credit facilities, which can range significantly in size depending on the borrower's needs and the specific credit strategy employed.

For their direct lending activities, which represent a significant portion of their capital deployment, HPS typically provides credit facilities ranging from tens of millions to hundreds of millions of dollars. While specific deal sizes vary greatly, initial credit facilities can commonly fall within a range of $25 million to $750 million, reflecting their engagement with a broad spectrum of middle-market to large corporate borrowers seeking bespoke debt solutions. This focus positions HPS as a crucial capital provider in the private credit ecosystem, supporting established businesses rather than funding nascent ventures.