HPS Corporate Lending Fund Board Member Resigns, Contingent on BlackRock’s Acquisition

HPS Corporate Lending Fund, a perpetual-life, non-traded business development company sponsored by HPS Investment Partners LLC, a New York-based private credit manager, announced that Grishma Parekh, board trustee and company president, intends to resign from the board, effective upon the closing of HPS Investment Partners’ acquisition by BlackRock (NYSE: BLK).

The company stated that Parekh is expected to continue to serve as company president, a member of the company’s investment committee and in her existing role at HPS as managing director and co-head of core senior living in North America.

Parekh’s resignation is contingent upon the closing of BlackRock’s $12 billion all-stock deal announced in December. If the transaction does not close, Parekh will not resign.

According to HPS, Parekh resigned to ensure compliance with Section 15(f) safe harbor provisions of the Investment Company Act of 1940 which states that 75% of the board of an investment company must not be “interested persons” of the investment company’s investment adviser for three years following a sale of securities or a controlling interest in an investment adviser to a registered investment company. As an “interested person,” Parekh chose to resign.

HPS stated that Parekh’s notice to resign was not the result of any disagreement with the company on any matter relating to the company’s operations, policies or practices.

BlackRock’s acquisition of HPS Investment Partners and its assets is expected to close in mid-2025 pending regulatory approval. BlackRock has previously stated that the deal will integrate HPS’ operations with BlackRock’s existing private credit division, creating a private credit franchise managing approximately $220 billion in assets.

BlackRock is the world’s largest asset manager with $11.5 trillion in assets.

HPS Investment Partners LLC provides customized financing solutions to businesses, including high-yield loans and asset-based finance. It oversees approximately $148 billion in client assets.

HPS Corporate Lending Fund was formed to invest primarily in newly originated senior secured debt and other securities of private U.S. companies within the middle market and upper-middle market. The fund launched in late January 2022 and seeks to raise $4 billion.

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