HPS loan fund raises more than $3bn

The fund was launched in August last year and, despite not having a formal target, the vehicle was looking to raise somewhere between high-$2bn and low-$3bn.

Investors
The largest pool of investment came from public and private pension funds from both the US and Europe.

Investments
The fund will invest in newly issued secured debt in refinancings, acquisitions (including private equity-backed buyouts) and restructurings for mid-market companies, as well as businesses in special situations. The vehicle will invest in the US and Europe.

"The important common characteristic for target companies is they don't have access to traditional lenders," explained Mike Patterson, partner at HPS. "This means that we will naturally lend to smaller firms, with under $75m EBITDA, or to companies with complicated structures that prevent them from using capital markets."

Ticket sizes will range from $50-250m, with investment sizes averaging $100m.

Traditionally half of HPS's investments have gone to private equity-backed deals.

People
HPS partner Mike Patterson will manage the fund from New York.

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