HPS raises $21.1bn for private credit fund

HPS Investment Partners has raised $21.1bn (£16.7bn) for its latest private credit fund, its largest fundraising to date.

The New York-headquartered asset manager’s Specialty Loan Fund VI attracted $14.3bn of commitments from investors, according to a report in the Financial Times.

The $21.1bn figure also includes billions of dollars of bank loans, the report said.

Read more: HPS limits private credit fund inflows amid surging demand

The direct lending fund offers an interest rate seven per cent above Sofr, the floating interest rate benchmark, which can currently yield between 12 and 13 per cent.

The fundraise is one of the largest sums ever raised by a direct lending fund, according to the Financial Times report citing data from Preqin.

Read more: HPS raises $10bn for second Core Senior Lending Fund

It overshadows Arcmont’s €10bn (£8.5bn) fund close announced in January, for its European Direct Lending Fund IV.

HPS Investment Partners manages $114bn of assets, across public and private credit as well as private equity and real assets.

It is thought to be considering a stock market flotation or a merger with another private investment group.