BlackRock’s HLEND Prorates Q3 Tender for Third Straight Quarter, Pays $603M
HPS Corporate Lending Fund paid approximately $603 million on or about Oct. 30 to repurchase shares tendered in its third-quarter 2026 share repurchase offer, accepting 43.7% of the shares investors sought to redeem.
The nontraded business development company, advised by HPS, a part of BlackRock, accepted 24,668,750 shares for repurchase out of 56,440,057 shares validly tendered. The accepted shares represented 5% of shares outstanding as of June 30 – the fund’s standard quarterly repurchase cap – leaving about 31.8 million tendered shares unfilled.
The fund, commonly known as HLEND, prorated repurchase requests for the third consecutive quarter. The final figures formalize results the fund previewed in a Sept. 11 letter to shareholders, when it said third-quarter requests totaled about 11.5% of shares outstanding, down from about 13.3% in the second quarter.
The third-quarter fill rate improved on the second quarter, when HLEND accepted 25.1 million of 66.7 million shares tendered, about 38%, for $612.1 million. It trailed the first quarter, when the fund accepted roughly 54% of tendered shares and paid approximately $610.8 million. Across its three 2026 tender offers, HLEND has paid out about $1.83 billion.
The offer expired Sept. 4. Tendering shareholders received non-interest-bearing, nontransferable promissory notes, which the fund paid in cash. Shares were repurchased at a net asset value of $24.45 per share as of Sept. 30, the offer’s valuation date. HLEND has reported the same NAV at each month-end since July 31, down from $25.22 as of Dec. 31, 2025.
The fund recorded $382.5 million in net unrealized depreciation for the six months ended June 30.
The tender results land as HLEND trims its balance sheet and payout. The fund has reduced its borrowings by about $2.4 billion since January and cut its monthly variable supplemental distribution by 29% over the same period, AltsWire reported Oct. 28. Separately, Cox Capital Partners is offering $20.17 per Class I share, about 17.5% below the Aug. 31 NAV, in a secondary tender offer set to expire Nov. 3.
Unfulfilled repurchase requests do not carry over automatically to the next tender offer, and shareholders may resubmit in a future quarterly window, HLEND said in a March letter to shareholders.
HLEND’s results track a broader easing in nontraded BDC redemption demand. Across the 19 NAV BDCs that had reported third-quarter tender results, requests totaled $13.8 billion, or 11.5% of estimated tender offer NAV, down from 12.7% on a same-store basis in the second quarter, according to Robert A. Stanger & Co. Those funds fulfilled about 40% of requests, leaving an estimated $8.2 billion unmet.
BlackRock completed its $12 billion acquisition of HPS Investment Partners in July 2025. HLEND continues to operate under the HPS name within BlackRock’s Private Financing Solutions platform.
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