HPS Investment Partners

{{Short description|American credit investment firm}}

{{Use mdy dates|date=December 2023}}

{{Infobox company

| name = HPS Investment Partners, LLC

| logo = HPS_Investment_Partners_Logo.svg

| type = Private

| industry = Investment management

| former_name = Highbridge Principal Strategies

| foundation = {{start date and age|2007}}

| location = New York City, U.S.

| founders = {{Unbulleted list

| Scott Kapnick

| Scot French

| Michael Patterson

}}

| key_people = {{Unbulleted list

| Scott Kapnick (CEO)

}}

| parent =

| subsid =

| aum = US$148 billion (December 2024)

| num_employees = 760 (2024)

| products = Private credit
Private equity
Mezzanine capital
Real assets
Public credit

| homepage = {{URL|hpspartners.com}}

| footnotes = {{cite web |title=Form ADV |url=https://reports.adviserinfo.sec.gov/reports/ADV/282125/PDF/282125.pdf |website=SEC}}

}}

HPS Investment Partners, LLC (HPS) is an American investment firm headquartered in New York City. The firm focuses on investments in private credit, public credit, private equity and real assets. In 2022, HPS was ranked by Private Debt Investor as the third largest private debt investment company based on total fundraising over the most recent five-year period.{{Cite web |date=December 1, 2022 |title=PDI 100 |url=https://www.privatedebtinvestor.com/pdi-100/ |access-date=July 20, 2023 |website=Private Debt Investor |language=en-US}} As of December 2024, HPS has $148 billion in assets under management.{{Cite web |last=Pitcher |first=Jack |date=3 Dec 2024 |title=BlackRock Strikes $12 Billion Deal for HPS, Doubling Down on Wall Street's Hottest Market |url=https://www.wsj.com/business/deals/blackrock-strikes-12-billion-deal-for-hps-doubling-down-on-wall-streets-hottest-market-b5d758cd |website=Wall Street Journal}}

History

In 2007, Scott Kapnick, Scot French and Michael Patterson founded Highbridge Principal Strategies after leaving Goldman Sachs. It was formed as the private equity and credit investment division of Highbridge Capital Management (Highbridge) within J.P. Morgan Asset Management. Its strategies included mezzanine capital, bonds, direct lending and growth capital.{{Cite news |date=November 30, 2023 |title=Banking Escapees Make Billions From Private Credit Boom |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2023-11-30/private-credit-how-firms-like-hps-are-a-big-threat-to-wall-street-giants |access-date=December 1, 2023}}{{Cite web |last=Rose-smith |first=Imogen |date=December 5, 2014 |title=Highbridge Capital Is Seeking an Exit from JPMorgan Chase |url=https://www.institutionalinvestor.com/article/2bsujlclawuyljm4lh05c/portfolio/highbridge-capital-is-seeking-an-exit-from-jpmorgan-chase |access-date=July 20, 2023 |website=Institutional Investor |language=en}}{{Cite news |last1=Chung |first1=Juliet |last2=Glazer |first2=Emily |date=October 20, 2015 |title=J.P. Morgan Near Deal to Sell Majority of Highbridge Private Equity Business |language=en-US |work=Wall Street Journal |url=http://www.wsj.com/articles/j-p-morgan-near-deal-to-sell-majority-of-highbridge-private-equity-business-1445364716 |access-date=July 20, 2023 |issn=0099-9660}}{{Cite web |last=Donde |first=Anastasia |date=October 20, 2015 |title=Highbridge credit business soon to go it alone |url=https://www.privatedebtinvestor.com/highbridge-credit-business-soon-to-go-it-alone/ |access-date=July 20, 2023 |website=Private Debt Investor |language=en-US}}{{Cite web |last=Taub |first=Stephen |date=February 9, 2011 |title=Highbridge Expands Credit Business |url=https://www.institutionalinvestor.com/article/2bszq4ilqe2jaq0otdvy8/portfolio/highbridge-expands-credit-business |access-date=July 20, 2023 |website=Institutional Investor |language=en}}{{Cite news |date=June 12, 2018 |title=Neuberger's Dyal Is Near Deal to Buy HPS Stake |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2018-06-12/neuberger-s-dyal-is-said-to-be-in-talks-to-buy-hps-stake |access-date=July 20, 2023}}{{Cite web |last=Fortado |first=Lindsay |date=July 3, 2018 |title=Credit investment firm HPS sells minority stake |url=https://www.ft.com/content/1b9d439c-7be3-11e8-8e67-1e1a0846c475 |access-date=July 20, 2023 |website=www.ft.com}}

In 2009, as a result of 2007–2008 financial crisis, many hedge funds suffered from redemption. However, Highbridge Principal Strategies grew significantly during this period.{{Cite web |last=Jones |first=Sam |date=February 7, 2011 |title=Highbridge to launch standalone credit fund |url=https://www.ft.com/content/71ec341a-3226-11e0-a820-00144feabdc0 |access-date=July 20, 2023 |website=www.ft.com}}

In February 2011, Highbridge Principal Strategies was expanded after Highbridge acquired Gávea Investimentos and had let go of its event-driven trading team.

In December 2014, Institutional Investor reported that Kapnick and the management team of Highbridge were in discussions with JPMorgan Chase to lead a management buyout of the firm. The talks were focused mostly on Highbridge Principal Strategies. One of the main reasons for the buyout was the Volcker Rule which put strict limits on how much banks can invest in alternative investments which would be detrimental to Highbridge. Another reason was how Highbridge staff were compensated with bank stock which put the firm at a disadvantage when hiring and retaining staff compared to privately held hedge funds since the bank was a highly regulated entity. Finally, Jes Staley who headed J.P. Morgan Asset Management and was instrumental in Highbridge's acquisition back in 2004 had left the firm in 2013 and was replaced by Mary Callahan Erdoes. In fact by this period, Highbridge co-founders Glenn Dubin and Henry Swieca and former Highbridge President Todd Builione had all left Highbridge.

By 2015, Highbridge Principal Strategies became the larger more dominant part of Highbridge due to its performance and popularity among investors. It managed $22 billion in assets under management while the hedge fund side managed $6 billion. It was one of Highbridge's most successful ventures.

In October 2015, it was reported that only Highbridge Principal Strategies would be separating from JPMorgan Chase. JPMorgan Chase would keep the Highbridge and its hedge funds operations as well as a minority stake of Highbridge Principal Strategies. In March 2016, the buyout was completed from Highbridge and JPMorgan Chase. This led to an independent firm being spun out as HPS Investment Partners.{{Cite web |title=CLOs - Creditflux.com |url=https://www.creditflux.com/CLOs/2016-04-05/Highbridge-CLO-business-completes-spinoff-from-JP-Morgan?d=1 |access-date=July 20, 2023 |website=www.creditflux.com}}

In July 2018, Dyal Capital acquired a minority investment in HPS.

In April 2023, it was reported that HPS had almost $100 billion in assets under management after it had raised $12 billion for a new junior credit fund.{{Cite web |last=Platt |first=Eric |date=April 11, 2023 |title=HPS assets near $100bn as credit funds move deeper into banks' territory |url=https://www.ft.com/content/bf453cab-dc9b-4c65-9f80-05dcbfa6efad |access-date=July 20, 2023 |website=www.ft.com}}

In December 2023, HPS confidentially filed for an initial public offering.{{Cite news |date=November 30, 2023 |title=HPS Investment Partners Confidentially Filed for IPO |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2023-11-30/hps-investment-partners-confidentially-filed-for-ipo |access-date=December 1, 2023}}

In December 2024, it was announced that BlackRock will acquire HPS for $12 billion. Following the acquisition, the company will operate under a new, combined private credit unit with $220 billion of client assets under management.{{Cite web |last=Ricketts |first=David |date=3 Dec 2024 |title=BlackRock acquires HPS Investment Partners for $12bn in private markets push |url=https://www.fnlondon.com/articles/blackrock-acquires-hps-investment-partners-for-12bn-in-private-markets-push-212b0bb3 |website=Financial News}}{{Cite web |title=BlackRock to Acquire HPS Investment Partners to Deliver Integrated Solutions Across Public and Private Markets – Company Announcement - FT.com |url=https://markets.ft.com/data/announce/detail?dockey=600-202412030600BIZWIRE_USPRX____20241203_BW219893-1 |access-date=2024-12-03 |website=markets.ft.com}} As part of the deal, the company’s leadership team will retain their positions in the new business.

Organization

HPS operates 14 offices across the United States, Europe, the Middle East and Asia-Pacific and employs over 760 people.{{Cite web |title=About Us |url=https://www.hpspartners.com/en/home/ |access-date=2024-12-02 |website=HPS Partners |language=en-US}}

References

{{reflist}}