News and Analysis
HPS launches private BDC targeting upper middle market
- Anna Russi
- +Michelle D'Souza
•1 min read
HPS Investment Partners has launched a private BDC, which aims to provide loans to companies in the upper end of the middle market, according to SEC fillings.
The BDC, called HPS Corporate Capital Solutions BDC, according to SEC fillings, will primarily focus on providing senior loans to US companies with an EBITDA ranging between $75m to $1bn. To a lesser extent, capital will also be allocated across junior capital and special situations opportunities.
A small portion of the funds from the BDC will be used to invest in broadly syndicated loans, bonds, or structured instruments purchased on either the primary or secondary market.
Eligible investors need either a net worth of at least $250,000 or a gross annual income of at least $70,000, and a minimum net worth of the same amount. The debt-to-equity ratio is expected to range between 0.5x and 1.0x, the filings said.
The firm is expecting to merge the new BDC with another of the firm’s privately offered funds, HPS Corporate Capital Solutions Fund, which is launched in early 2022. As of 30 September, the existing BDC had approximately $730.3m of gross assets and net assets of roughly $561.1m.
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