BlackRocks’ BDEBT Clears 5% Tender Cap While HLEND Prorates Again
Two BlackRock-affiliated business development companies posted sharply different results in their third-quarter 2026 tender offers: one repurchased every share tendered, while the other had to prorate requests for the second straight quarter.
BlackRock Private Credit Fund, or BDEBT, reported that its quarterly tender offer for up to 5% of outstanding shares expired Sept. 4, 2026. A total of 3,193,088 shares – about 4.58% of shares outstanding as of June 30 – were validly tendered and not withdrawn. Because the tender came in below the 5% ceiling, the fund is expected to purchase all validly tendered shares without proration, with the purchase price based on net asset value per share as of Sept. 30. This differed from the company’s second-quarter 2026 repurchase requests, which represented approximately 5.3% of shares outstanding and BDEBT filled them only up to the 5% quarterly cap.
HPS Corporate Lending Fund, or HLEND, went the other way. The fund is managed by HPS Investment Partners, which BlackRock folded into its Private Financing Solutions division after completing its acquisition in July 2025. In a Sept. 11 letter to shareholders, the company said it repurchased about $600 million, or 5% of shares outstanding as of June 30 – its standing quarterly cap. But shareholder repurchase requests for the quarter totaled approximately 11.5% of shares outstanding, meaning the fund again had to prorate applications to stay within its limit. That is down from the second quarter, when requests reached 13.3% of shares outstanding, but demand still ran at more than double the fund’s self-imposed ceiling.
The disclosed figures imply that roughly 43% of the shares tendered to HLEND were accepted for repurchase.
Other Performance Metrics
As of July 31, 99.9% of BDEBT’s portfolio was invested in first-lien senior secured loans, with a weighted average loan-to-value ratio of 31% across the private portfolio. The fund’s portfolio companies, which spanned more than 45 industries as of an April shareholder letter, grew revenue by 12.2% and earnings before interest, taxes, depreciation, and amortization by 9% on a weighted average trailing 12-month basis as of March 31, 2026, while maintaining interest coverage of 2.4x.
BDEBT held 295 portfolio companies as of June 30, up from 290 in the earlier update. Loans on nonaccrual represented 0.0% of portfolio fair value as of June 30 – down from 0.02% at the end of March – and payment-in-kind income accounted for approximately 1.5% of total investment income during the second quarter, up from 1.3% in the first quarter.
HPS framed the redemption activity against performance it described as strong. Since inception through July 31, HLEND generated a 9.9% annualized total net return for Class I shareholders, which HPS said represented a 3.5-percentage-point premium over broadly syndicated loan total returns over the same period. The fund’s annualized distribution rate for Class I shareholders stood at 9.8% as of August.
HLEND also said it has maintained substantial capital flexibility despite the elevated repurchase activity, having bought back an aggregate $1.7 billion in shares across the three repurchase periods ended June 30 while keeping leverage roughly stable at the low end of its target range. As of June 30, the fund’s portfolio spanned 359 companies across 53 industries, with about 95% invested in first-lien senior secured loans and a weighted average loan-to-value ratio of 39%; HPS said the fund continues to target larger, established borrowers, citing a weighted average portfolio-company earnings before interest, taxes, depreciation, and amortization of roughly $262 million. Portfolio-company performance also held up, according to the letter: HLEND’s private portfolio companies grew revenue 12.4% and EBITDA 14.1% over the 12 months ended June 30, with weighted average interest coverage at 2.3x.
Previously reported by AltsWire, HLEND recorded $382.5 million in net unrealized depreciation for the six months ended June 30, more than 80 times the $4.7 million recorded in the same period last year. The second quarter alone accounted for $156.3 million of that depreciation, compared with $12.4 million in the same quarter last year.
The third-quarter divergence comes with both funds now sitting inside the same parent company. BlackRock’s HPS deal was structured to preserve HPS’s branding and existing fund lineup: HLEND, along with HPS Strategic Investment Partners, HPS Specialty Loan Fund, and HPS Core Senior Lending Fund, continue operating under the HPS name inside BlackRock’s Private Financing Solutions unit. BDEBT, by contrast, is BlackRock’s original direct-lending vehicle, built independently of the HPS platform.
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