HPS Investment Partners stands at the forefront of the global private credit landscape, managing approximately $123 billion in private credit assets as part of their overall $149 billion AUM portfolio as of December 2024. The firm has established itself as one of the industry’s dominant players in direct lending, providing creative capital solutions and generating attractive risk-adjusted returns for clients worldwide. With an approach characterized by intellectual rigor and disciplined investment strategy, HPS Private Credit offers a comprehensive suite of financing solutions ranging from privately negotiated senior debt to junior capital instruments, enabling investments in companies of all sizes through both standard and customized approaches.
| Attribute | Details |
|---|---|
| Founded | 2007 (as a division of Highbridge Capital Management within J.P. Morgan Asset Management) |
| Headquarters | Global presence with 14 offices (NYC primary) |
| CEO | Scott Kapnick |
| Employees | 770+ total (approximately 250 investment professionals) |
| Ticker | Not publicly traded |
| Category | Alternative Investment Management Firm |
| Key Divisions | Private Credit, Public Credit, Asset-Based Finance, Real Estate |
HPS’s private credit operation benefits from the firm’s extensive global network and deep relationships, enabling superior deal sourcing across markets and the ability to provide tailored capital solutions for complex situations. With approximately $123 billion in private credit assets, HPS commands the scale necessary to participate in substantial transactions while maintaining the agility to pursue specialized opportunities.
The private credit division deploys capital across the entire credit structure, from senior secured loans to junior capital instruments, offering flexibility that many competitors cannot match. This versatility allows HPS to structure optimal solutions regardless of market conditions or transaction complexity.
HPS Private Credit operates in close coordination with the firm’s public credit teams, creating a distinct competitive advantage through cross-platform information sharing and market insights. This integration enables more sophisticated risk assessment and opportunity identification than standalone private credit platforms can achieve.
The private credit division employs rigorous due diligence and valuation methodologies focused on downside protection while seeking attractive risk-adjusted returns. This disciplined process has allowed HPS to build a reputation for thoughtful credit selection and portfolio construction across economic cycles.
HPS Investment Partners’ private credit division represents the cornerstone of their investment platform, working alongside complementary business units to provide comprehensive financial solutions:
Direct Lending: Senior secured and unitranche loans to middle-market and larger companies
Junior Capital Solutions: Subordinated debt, preferred equity, and structured financing instruments
Special Situations: Investments in distressed assets and companies requiring complex financial solutions
European Private Credit: Dedicated team focused on European direct lending opportunities
Leveraged Loans
Collateralized Loan Obligations (CLOs)
High Yield Bonds
Specialty Finance
Transportation Assets
Commercial Real Estate Debt
Real Estate Equity
While HPS Investment Partners is a major participant in the private credit market, specific transaction details are not publicly disclosed in the available search results, which is typical for private credit firms due to the confidential nature of their business. As one of the largest private credit managers globally with approximately $123 billion in private credit AUM, they likely participate in significant financing transactions across numerous industries and geographies.
The available information suggests that HPS’s European Private Credit team actively sources, evaluates, and monitors investment opportunities across Europe, including direct lending/unitranche deals and subordinated debt transactions. These activities involve detailed financial modeling, business due diligence, valuation analysis, and ongoing monitoring of investments and sector trends.
Scott Kapnick – Chief Executive Officer and Founding Partner
Scot French – Founding Partner
Michael Patterson – Founding Partner
Purnima Puri – Founding Partner
Faith Rosenfeld – Founding Partner and Chief Administrative Officer
Paul Knollmeyer – Founding Partner and Chief Risk Officer
Kathy Choi – Founding Partner
Following BlackRock’s acquisition, Scott Kapnick, Scot French, and Michael Patterson will lead BlackRock’s consolidated private credit business and join the firm’s Global Executive Committee. Kapnick will also take a board observer role at BlackRock.
HPS’s Private Credit division functions as the firm’s cornerstone investment strategy, delivering bespoke financing solutions to companies across diverse industries and geographies. The division’s core activities encompass:
The private credit arm primarily focuses on direct lending, offering senior secured, unitranche, and subordinated debt financing to middle-market and larger companies. These financing solutions typically support leveraged buyouts, recapitalizations, acquisitions, and growth capital requirements. HPS professionals develop sophisticated financial models, conduct detailed business due diligence, evaluate deal opportunities, prepare investment committee materials, interact directly with management teams, conduct valuation analyses, and monitor ongoing investments and sector trends.
HPS Private Credit leverages several distinct advantages:
Global Reach: With fourteen offices worldwide, HPS sources and executes private credit investments across North America, Europe, and other key markets
Flexible Capital Deployment: The scale of their platform enables customized solutions ranging from middle-market transactions to large, complex financings
Integrated Credit Expertise: Private credit professionals collaborate closely with public credit teams to leverage comprehensive market insights
The private credit division primarily serves:
Private equity sponsors requiring financing for portfolio company transactions
Corporate borrowers seeking alternatives to traditional bank financing
Companies in transition requiring specialized financing solutions
Based on job postings and company materials, HPS cultivates an environment emphasizing intellectual rigor, disciplined analysis, teamwork, and a meritocratic structure. The firm values self-motivated individuals with strong analytical skills and the ability to manage multiple projects simultaneously. HPS also demonstrates commitment to community involvement, diversity, and incorporating ESG considerations into both their corporate culture and investment processes.
