HPS Corporate Lending Fund Board Rejects Discounted Cox Capital Mini-Tender
The board of trustees of HPS Corporate Lending Fund, the nontraded business development company known as HLEND, has unanimously recommended that shareholders reject an unsolicited mini-tender offer from Cox Capital Retail Secondaries Fund I, L.P., priced roughly 25% below the fund’s net asset value.
Cox Capital is offering to buy up to 550,000 Class I shares of HLEND at $18.40 per share, roughly 25% below HLEND’s net asset value per share of $24.53 as of May 31, 2026, the published NAV at the time of the offer. The shares subject to the offer represent approximately 0.1% of HLEND’s outstanding Class I shares as of May 31, according to the fund.
The board said shareholders already have access to liquidity through HLEND’s quarterly repurchase program, through which shares are repurchased at NAV, and that the economics of Cox’s offer would transfer value from tendering HLEND shareholders to investors in Cox’s own fund and, indirectly, to Cox itself through performance-based fees it could collect. Shareholders who do not wish to tender do not need to take any action, and shareholders who have already agreed to tender shares may withdraw at any time before the offer expires, the fund said.
The rejection follows a pattern that has played out repeatedly across the nontraded BDC and real estate investment trust sector this year, as Cox Capital and, in some cases, Saba Capital Management have launched unsolicited tender offers at steep discounts to NAV, framing the offers as liquidity options for shareholders facing constrained redemption programs. AltsWire reported last week that the board of Ares Strategic Income Fund rejected a similar Cox Capital offer.
The mini-tender arrives weeks after AltsWire reported that HLEND’s second-quarter repurchase requests jumped to approximately 13.3% of shares outstanding, well above the fund’s 5% quarterly repurchase cap and up from 9.3% in the first quarter.
HLEND also disclosed routine monthly figures alongside the board’s recommendation. NAV per share as of June 30, 2026, was $24.42 across all four share classes. The fund’s aggregate NAV was $12.05 billion, the fair value of its investment portfolio was $24.18 billion, and it had principal debt outstanding of $12.24 billion, for a debt-to-equity ratio of approximately 0.97x in June.
The fund also declared its July distributions. Class I shares will receive a $0.16 per share regular distribution plus a $0.039 variable supplemental distribution, for total net distributions of $0.199 per share. Class D, Class F, and Class S shares will receive similar amounts, net of distribution and shareholder servicing fees that vary by class. Distributions are payable to shareholders of record as of July 31, 2026, and will be paid on or about Aug. 31, 2026.
HLEND is offering up to $15 billion in shares on a continuous basis. As of the July 1, 2026, subscription date, the fund has issued approximately 560.7 million shares across all classes for total consideration of about $14.08 billion.
HLEND is advised by HPS Investment Partners, a private credit adviser that BlackRock acquired in July 2025 in an all-stock transaction valued at approximately $12 billion.
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