HPS Investment Partners, LLC, a Delaware limited liability company, was originally formed in March 2007
to focus on managing debt and equity investments, including loan, mezzanine, credit opportunities, private
equity, real assets and other investments.
HPS is a subsidiary of HPS Group Holdings II, LLC. Scott Kapnick, Chief Executive Officer of HPS, is a
principal owner of HPS through intermediate entities. For information regarding the direct owners, indirect
owners and executive officers of HPS, please see Part 1A of this Form ADV.
HPS was originally formed as a unit of Highbridge Capital Management, LLC (“HCM”). HCM is a
subsidiary of JPMorgan Asset Management Holdings Inc. (“JPMAM”), which in turn is a subsidiary of
JPMorgan Chase & Co. (together with its affiliates, “JPM”). In March 2016, the principals of HPS acquired
HPS and its subsidiaries from JPMAM, which retained HCM’s hedge fund strategies. In June 2018,
affiliates of Dyal Capital Partners (now a business unit of Blue Owl Capital Inc.) made a passive minority
investment in HPS. In February 2022, an affiliate of The Guardian Life Insurance Company of America
made a passive minority investment in HPS.
HPS is a leading global private investment platform that focuses on both private and liquid credit strategies
with the ability to invest across the entire non-investment grade credit landscape. HPS manages assets
across a wide range of investment strategies, which include Asia credit, CLOs, credit opportunities,
renewables and power, asset value, leveraged loans, liquid loans, mezzanine debt, opportunistic CLO, real
estate, core senior loans, special situations, private equity and specialty loans, which are described more
fully in Item 8. HPS is headquartered in New York with additional offices globally.
HPS generally provides investment advisory services directly and through its subsidiary advisory entities
or affiliates to: (i) certain private investment vehicles including domestic and foreign partnerships and
corporations sponsored and/or organized by HPS (“HPS Funds”); and (ii) separately managed accounts
and single-investor vehicles that may be domestic or foreign partnerships or corporations each established
by, or on behalf of, a single third party investor (or two or more affiliated third party investors) (collectively,
“Third Party Funds” and together with HPS Funds, “Clients”).
HPS provides investment advisory services to the Clients pursuant to the investment objectives, strategies
and restrictions, including, if applicable, customized investment guidelines, as set forth in each Client’s
governing documents, which are received and agreed to by investors in the Clients prior to their investment
in such Client and include, as applicable, an investment management agreement, organizational documents
(such as limited partnership agreements or memorandum and articles of association), offering documents,
side letter agreements and/or other documentation relevant to an investment in the Client, and together are
collectively referred to as “Governing Documents.”
HPS has entered into side letter agreements or similar agreements pursuant to which certain investors are
granted specific rights, benefits or privileges that are not generally made available to other investors.
At the outset of their relationship with HPS, investor(s) in a Third Party Fund consult with HPS to establish
customized investment guidelines applicable to HPS’s management of the Third Party Fund’s investment
portfolio. Such guidelines typically vary, at times significantly, among Third Party Funds with the same
investment objective based on the specific needs of the underlying investor(s). The negotiated and tailored
guidelines are agreed to in the relevant Third Party Fund’s Governing Documents, which can be amended
as set forth in such Third Party Fund’s Governing Documents.
Without prior consultation with existing Clients, HPS will provide investment advisory services to
additional Clients. Clients may also be solicited to invest, and do in some cases invest, in one or more HPS
Funds.
HPS does not currently, but may in the future, participate in wrap fee programs.
As of December 31, 2023, HPS managed $122,878,828,213 of Client assets on a discretionary basis and
$2,901,732,048 of Client assets on a non-discretionary basis. These amounts reflect regulatory assets under
management as calculated in Part 1 of our Form ADV.
For the avoidance of doubt, all information discussed above regarding the investment advisory services
provided by HPS to a Client is qualified in its entirety by reference to the relevant Client’s Governing
Documents.