Did you know HPS Investment Partners, LLC oversees about $114 billion in assets as of May 2024? This shows how much trust their clients have in their financial expertise and innovative solutions. Founded in 2007, HPS has grown into a leading global investment firm. It provides various strategies for both large and small businesses.
It started within Highbridge Capital Management, part of J.P. Morgan Asset Management. Today, under CEO Scott Kapnick, HPS shines as an independent firm. It manages a vast portfolio, aiming for high returns for its clients. This shows its vital role in the asset management industry.
Key Takeaways
- HPS Investment Partners manages approximately $114 billion in assets under management as of May 2024.
- Offering a spectrum of strategies within the capital structure.
- Originally part of Highbridge Capital within J.P. Morgan Asset Management.
- Focuses on delivering attractive risk-adjusted returns.
- Led by a team of experienced professionals including CEO Scott Kapnick.
About HPS Investment Partners
HPS Investment Partners has made a big impact in the financial world. It’s known for smart financial advice and full asset management services. Scott Kapnick, Scot French, and Michael Patterson founded it in 2007. Since then, they’ve dealt with complex financial challenges to grow a strong portfolio2. It first started as Highbridge Principal Strategies under J.P. Morgan Asset Management. In 2016, it changed to HPS, marking a big step in its story3.
Company History
The story of HPS Investment Partners is one of toughness and growth. In the tough times of the 2007-2008 financial crisis, it grew a lot. By 2015, it had $22 billion in assets, more than the original Highbridge2. By December 2023, the firm was setting up for an IPO, showing its big plans for the future2. Now, HPS manages $114 billion in assets, proving its impressive growth3.
Core Values
The strong core values at HPS Investment Partners guide its success. It’s built on deep thought and careful discipline. The firm values detailed analysis and smart investing. This makes them reliable and trusted financial experts. They offer well-thought-out investment chances in private equity, debt solutions, and real estate2.
Investment Strategies at HPS Investment Partners
HPS Investment Partners is known for its broad investment strategies. It covers private equity, debt solutions, and real estate investments. These approaches show the firm’s skill in different financial situations.
Private Equity
HPS puts money into companies to help them grow. It gives them the growth capital they need to expand. By investing, HPS can actively help companies grow and increase their value. As of May 2024, HPS handles $116 billion in assets. This shows their strong ability to invest4.
Debt Solutions
HPS provides a range of debt solutions. These include leveraged loans and mezzanine investments. Since starting in 2008, their junior capital solutions strategy has put over $36 billion to work5. In 2022, it was named the third-largest private debt firm based on the past five years of fundraising2. HPS supports businesses while managing risks well.
Real Estate
Real estate is key to HPS’s investment strategies. They find and invest in valuable real estate, offering clients good and diverse income. Guardian Life Insurance trusted HPS with $30 billion of assets to manage4. They also plan to invest up to $5 billion more in the next few years4.
Together, HPS’s methods show their dedication to alternative investments. They meet their clients’ varied needs while maintaining strong asset growth and stability.
Our Global Reach
HPS Investment Partners is known worldwide. They manage over $60 billion, making them a big player in global investing6. They’ve also raised more than $1.5 billion for their second European Asset Value Fund. This move shows they’re growing, reaching beyond Europe6.
Office Locations
HPS Investment Partners has fifteen offices around the world6. These offices help them understand different markets better. They aim to provide great value to their investors by keeping up with trends everywhere.
International Presence
They’ve put over $2.2 billion into leasing and lending in twelve countries in just three years6. By backing small and medium businesses, they make their portfolio stronger and ensure a good flow of assets6.
HPS joined forces with Sumitomo Mitsui Trust Bank to enter the Asia Pacific market7. This partnership helps them meet the growing need for unique investment options, boosting their global role7.
HPS offices show their strong global focus. They use their wide reach to stay ahead in the world’s markets6. For more info on their growth and locations, check out this detailed resource.
The Leadership Team
The leadership team at HPS Investment Partners sets a high bar in the asset management field. Scott Kapnick, Scot French, and Purnima Puri each add vast knowledge and a clear vision. This vision is key to the firm’s ongoing success.
Scott Kapnick
Scott Kapnick, the CEO, stands out for his strategic insight in finance. He leads the firm to growth and new ideas8. With Kapnick at the helm, HPS has grown its asset management team. It now oversees more than $61 billion in assets8. His vast experience helps align investment strategies with both market chances and client needs.
Scot French
Scot French is key among HPS Investment Partners leaders. He shapes the company’s operation plans. His knowledge of finance highlights HPS’s aim for top asset management. Scot’s guidance helps keep the firm’s good name and meet investment goals.
Purnima Puri
Purnima Puri plays a crucial role at HPS Investment Partners. She is known for her knowledge in financial instruments and trends. Purnima brings depth and variety to the team’s expertise. Her work helps HPS tackle complex markets while staying focused on what clients need8.
Distressed Assets Investment
HPS Investment Partners excels in handling troubled assets. By buying Tålamod Asset Management, they’ve upped their game. This move boosts HPS’s financial strategies with Tålamod’s know-how in tough credit situations.
Acquisition of Tålamod Asset Management
Buying the Dallas-based Tålamod Asset Management was a big step for HPS. This widened their ability to deal with challenging assets. Andersen Fisher, the brain behind Tålamod, together with Kyle Mapes and Jay Steen, have now joined HPS1. Rick Morris also came on board as Managing Director in London, making HPS stronger globally in distressed assets910.
Special Situations
The team at HPS Investment Partners is all in on special situations. Led by Colbert Cannon, they’re tackling private credit challenges in Europe head-on. Since 2010, they’ve handed out over $52 billion in loans, showing their strength in complex financial issues9.
Their Special Situations Opportunity Fund has also impressed with a 17% IRR as of the end of 2022. This success points to their skill in managing distressed investments for high returns9.
The Role of Intellectual Rigor in Asset Management
At the heart of HPS Investment Partners’ strategy is intellectual rigor. This ensures their analysis and risk management are thorough and effective. They use in-depth asset management analysis. This builds trust and long-term value for their clients.
Analytical Approach
HPS Investment Partners oversees about $80 billion in assets as of December 202111. This level of management demands a deep commitment to intellectual rigor. They explore data and evidence for each investment decision. Their private credit platform focuses on sectors like energy, power, and real estate, showing their precise analytical methods12.
Risk Management
Risk assessment is key for HPS Investment Partners. They manage over $45 billion in assets and make big investments in their direct lending business12. The firm uses strong risk management techniques. This helps their portfolio grow and stay stable. Their Mezzanine Partners 2019 Fund gathered over $11 billion, showcasing their skill in balancing risk and return13.
HPS has a history of successful investments too. They’ve made investments over $660 million in various corporate credits11. Their careful approach helps identify and reduce risks. This keeps their clients’ interests safe at all times.
Client Services and Solutions
HPS Investment Partners always puts client services first. It does this by creating custom financial plans for each client’s unique goals. This approach makes sure each investment matches what the client needs and wants for the future.
Custom Investment Solutions
HPS is known for its custom investment strategies. These are carefully made to improve client portfolios. They offer everything from special private equity deals to new debt solutions. Their skill in crafting these solutions sets them apart. HPS is a go-to for unique financial advice and services.
The partnership with Guardian Life Insurance Company of America shows how committed HPS is. By Guardian buying into HPS, they aim to strengthen their investment abilities. This teamwork is all about coming up with investment strategies that are just right for the insurance market. It lets them share knowledge and make better services for clientscustom financial solutions14.
Investor Relations
Strong investor relations are key at HPS. They focus on being open, easy to reach, and quick to respond. This keeps investors in the loop and satisfied. HPS looks after about $114 billion, offering different strategies to meet investor needs. They make sure to answer any question fast and right3.
HPS is always getting better at connecting with clients and investors. They recently started the Specialty Loan Fund VI (SLF VI), ending up with $21.1 billion to invest. This fund has put over $2.5 billion into 29 different investments. It shows HPS’s dedication to giving clients good returns without too much risk3.
HPS Investment Partners in Numbers
HPS Investment Partners is a big name in finance. By May 2024, it oversees about $116 billion in assets under management (AUM)15. This achievement shows the firm’s strong operations and deep knowledge. It’s driven by the hard work of 678 workers16.
Assets Under Management
HPS Investment Partners has a wide range of investments. It manages $43 billion in Direct Lending, $23 billion in Liquid Credit, and $72 billion in Private Credit15. Private Credit includes debt negotiations, special situations, and special loans and leases. Another $26 billion goes to Strategic Investment Partners, highlighting diverse investment methods15.
- Direct Lending: $43 billion
- Liquid Credit: $23 billion
- Private Credit: $72 billion
- Strategic Investment Partners: $26 billion
Employee Count
HPS Investment Partners thrives because of its committed team. Over 650 people work there, and more than 200 are investment professionals15. Its main office is in New York City, but it has locations on four continents15. With a 15% staff increase in the last year, HPS is clearly growing and succeeding financially16.
| Category | Number |
|---|---|
| Total Employees | 678 |
| Investment Professionals | 200+ |
| Global Offices | 1 |
| Carbon Offsets Purchased (2021) | 16,000 tons |
Private Equity Firm Expertise at HPS
HPS Investment Partners is famous for its skills in private equity. It draws investors with successful strategies and outcomes.
Growth Capital Strategies
HPS shines in private equity with its focus on strategic growth capital. These strategies help businesses expand successfully. For example, Ankura Consulting Group’s value hit $1.5 billion with HPS’s help, showing impressive growth17.
This growth capital support lets HPS lift companies up. They use their wide network and deep industry insight for this. HPS has about $75 billion in assets, showing its strong resource base17. This shows their success in strategic growth deals, leading the private equity world18.
Case Studies and Success Stories
HPS has made 111 investments across various sectors, showing its diverse and successful portfolio18. These success stories show HPS’s drive for outstanding outcomes. Like their work with Waterman Interests in 2024, it highlights their team approach18.
Ankura is a key example of HPS’s impact, with 1,500 staff and 3,000 clients worldwide17. Also, HPS’s recent investment in S64 further shows their dedication to innovation18.
HPS is strong due to strategic partnerships, supporting its diverse investment strategy18. Working together boosts their earnings and market standing.
To learn more about how HPS succeeds, see their deal with Dyal Capital Partners here.
Alternative Investments Offered by HPS
HPS Investment Partners offers various alternative investments for savvy investors. They provide choices like leveraged loans and high yield bonds. This way, HPS helps clients add variety to their portfolios beyond normal investment options.
Leveraged Loans
Leveraged loans play a big role in HPS’s approach. They help businesses with more debt get capital. These loans are often used for company acquisitions, buyouts, or making financial adjustments. HPS’s direct lending started in 2010 and stands out for its flexibility, custom solutions, and strong market connections19.
The success of the Core Senior Lending Fund II (CSL II) highlights the big chance in private credit markets. It gathered around $10 billion, showing investor trust14.
High Yield Bonds
High yield bonds, or junk bonds, are another option HPS offers. They come with higher interest rates because they’re more risky. But, they can also bring bigger returns, fitting the needs of daring investors. With HPS managing about $100 billion, including these risky securities, they bring a lot of know-how1420.
HPS is dedicated to providing clients with varied investment choices like leveraged loans and high yield bonds. They use their vast experience and resources to help investors explore new market opportunities. Their goal is to help clients grow their wealth over time.
Asset Management: Flexibility and Innovation
Flexibility and innovation stand at the heart of HPS’s asset management strategy. They manage $65 billion in assets as of October 2020, showing their vast expertise. They balance standard solutions with unique strategies perfectly21. This method serves a wide range of clients and meets various investment needs.
Standard Solutions
HPS Investment Partners focuses on standard solutions at their core. These solutions are inclusive and ideal for all investor sizes. Their global platform supports investments in both large and small companies, providing a flexible and steady approach21.
The Mezzanine Partners 2019 Fund, with over $11 billion in capital and about $9 billion in equity, proves HPS’s solutions are vast and reliable21. They keep evolving their asset management methods through innovation.
Customized Strategies
HPS is also great at making customized investment plans for clients. This shows how flexible their solutions are. Their previous fund, Fund III, got about $6.5 billion in commitments, highlighting their skill in tailored investments21.
In 2020, their private credit platform invested over $12 billion in 54 companies. This shows they’re good at creating specific strategies for clients, aiming for good returns21. Custom alerts and settings, like for news, help keep clients updated and involved22.
The Future of HPS Investment Partners
Looking to the future, HPS Investment Partners is well-placed to take advantage of changes in finance. The firm plans to push its HPS projects further and make the most of new opportunities. These opportunities come from detailed market studies.
Upcoming Projects
HPS Investment Partners has big plans that fit the changing market scene. They manage over $95 billion across different strategies, always looking to grow23. The firm focuses on ESG goals, starting with its first Article 8 fund and aiming to launch more ESG-focused funds soon23. This shows HPS’s active role in sustainable investing and shaping finance’s future.
Market Trends and Predictions
The financial world is facing ups and downs. Recent bank failures highlight a key moment in U.S. bank history24. These changes help non-bank debt providers grow, making private credit a major asset class24. Now, non-banks control 46% of the leveraged loan market, up from 30%24.
With $200 billion in loan maturities coming up, HPS is ready to grab these chances24. Their market research shows these trends will keep giving strong protections for investors. This matches HPS’s goal to offer top risk-adjusted returns24.
HPS plans to use market forecasts to adjust to less bank lending. This will help them fine-tune their future projects for the changing capital needs24. By staying flexible, HPS remains a leader in the market, always innovating and bringing value to its stakeholders.
| Category | Value |
|---|---|
| Total Assets Under Management | $95 billion |
| Private Credit Investments | $72 billion |
| Direct Lending Assets | $43 billion |
| Liquid Credit Assets | $23 billion |
| Other Private Credit | $3 billion |
| ESG Initiatives | Fully Offset 2021 Carbon Footprint |
| Number of Employees | 520 |
| Global Offices | 15 |
Conclusion
HPS Investment Partners stands out as a top asset management firm, catering to today’s investors’ unique needs. They manage a huge $101 billion19, showing their skill in handling complex financial situations. The firm’s success in investing significant capital, like almost 60% of their $9.1 billion in their Specialty Loan Fund V towards 58 projects25, proves their expertise.
HPS’s global presence is impressive, thanks to a clever leadership team and varied portfolio. Their second Core Senior Lending Fund (CSL II) closed with around $10 billion19, showing their ability to gather big funds. Since 2010, they’ve invested over $55 billion in more than 375 companies25, showcasing their wide reach and smart financial strategies.
Working with HPS Investment Partners is more than a simple financial deal; it’s about building a trust-based relationship that aims for outstanding results. HPS focuses on smart capital solutions that match the latest market trends. They manage about $100 billion5, dedicating themselves to finding innovative solutions for their clients. This focus shines in their different investment methods, like private equity, debt strategies, and real estate, leading to their clients’ success.
