HPS Corporate Lending Fund
06/12/2026 | Press release | Distributed by Public on 06/12/2026 06:30
Regulation FD Presentation (Form 8-K)
HPS Investment Partners, LLC | 40 West 57th Street, 33rd Floor, New York, NY 10019
Dear Shareholders,
The HPS Corporate Lending Fund ("HLEND") was built with a clear purpose: to seek to deliver individual investors the
core benefits of institutional direct lending strategies, providing attractive risk-adjusted returns and generating reliable,
consistent income across varied market environments.
The fund continues to deliver on these objectives. Since inception through April 30, 2026, HLEND has delivered a 10.2%
annualized total net return for Class I shareholders,1 representing a 3.8% premium to broadly syndicated loan total returns
over the same timeframe.2 HLEND has also continued to generate a reliable current income stream, with an annualized
distribution rate of 9.9% for Class I shareholders as of May 2026.3 We believe these results reflect the quality of HLEND's
portfolio and our disciplined capital management process.
As we discussed last quarter, we believe HLEND's performance results are predicated upon the fund's quarterly liquidity
framework, which aligns investor capital with the expected duration of private credit investments, while also providing
recurring liquidity to requesting shareholders.4 This liquidity feature is critical to HLEND's ability to provide its investors
with a premium return to public credit markets.
During the second quarter, HLEND received repurchase requests totaling approximately 13.3% of shares outstanding as of
March 31, 2026.5 Consistent with HLEND's liquidity parameters and past practice, the fund will fulfill repurchase requests
for 5% of shares outstanding as of March 31, 2026 (approx. $620 million).
Looking ahead, we believe the opportunity set is becoming increasingly attractive. The market has shifted from an
expectation of declining rates toward a view that current rates may persist or move higher. Direct lending credit spreads
have also begun to widen relative to late 2025 levels, and there are early indications of increasing activity levels.6
The fund maintains a highly diversified portfolio focused on the most senior debt of larger scale businesses. First lien senior
secured loans made up more than 95% of the portfolio,7 and the weighted average EBITDA across HLEND's private
holdings was $251 million.8 HLEND's private credit portfolio companies have been performing well - growing both
revenue and EBITDA at 11% on a trailing twelve-month basis as of March 31, 2026.9 HLEND's portfolio also remains
conservatively positioned, with a weighted average loan-to-value of 39%8 and a weighted average interest coverage ratio of
2.3x10 across the private credit portfolio.
HLEND maintains significant capital flexibility. Leverage remained at 1.0x,11 the low end of our target range, and the fund
had approximately $7.2 billion of estimated liquidity, including $4.9 billion of available debt capacity,12 over $700 million
of cash on hand,13 and a $1.6 billion portfolio of liquid assets,14 as of March 31, 2026. This profile is further bolstered by
continued subscriptions and distribution reinvestment, which together are expected to more than fully offset repurchases
during the first six months of 2026.15
We thank you for your ongoing trust and partnership and look forward to continuing to execute on your behalf in this
exciting environment.
Sincerely,
HPS Corporate Lending Fund
HPS Investment Partners, LLC | 40 West 57th Street, 33rd Floor, New York, NY 10019
Important Disclosures:
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS and there can be no assurance that HLEND will achieve its
objectives or avoid substantial losses. Opinions expressed herein reflect the current opinions of HPS as of the date hereof (unless otherwise specified) and
are based on HPS's opinions of the current market environment, which is subject to change.
HPS Corporate Lending Fund published this content on June 12, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on June 12, 2026 at 12:31 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]