HPS nears €700m for European fund – exclusive

According to sources, HPS Investment Partners is close to a second close on its European Asset Value Fund.

HPS Investment Partners, the fund manager previously known as Highbridge Principal Strategies, is understood to be nearing a second close on around €700 million for its HPS European Asset Value Fund.

Market sources told PDI that the second close is likely to happen by the end of this month. HPS was not available for comment.

The fund has a focus on asset-backed private credit and will acquire performing non-core assets divested from European banks and large non-banks.

HPS Investment Partners spun out from JPMorgan in March this year. It specialises in private equity, debt and mezzanine investments in both public and private capital markets and has approximately $24 billion of assets under management.

The firm climbed nine places from 16th to 7th in this year’s PDI 30 ranking of the asset class’s biggest capital raisers thanks to a series of successful fundraising initiatives. It is reported to be well on its way to a $5.5 billion target for its latest mezzanine fund and also launched its fourth HPS Specialty Loan Fund in the summer with a $3.5 billion target.

HPS has been particularly successful at raising money from US public pensions, with the Arizona State Retirement System committing more than $1 billion to its mezzanine, senior debt and real estate strategies, and the South Carolina Retirement System handing over $400 million for a tailored multi-strategy credit account in 2015.