HPS Corporate Lending Fund Sees Q2 Redemption Requests Jump to 13.3%
HPS Corporate Lending Fund said second-quarter repurchase requests totaled approximately 13.3% of shares outstanding as of March 31, 2026 – a sharp increase from the 9.3% rate recorded in the first quarter and more than 2.6 times the fund’s 5% quarterly repurchase cap.
HLEND said it will fulfill repurchase requests at the cap, or approximately $620 million, with requests prorated among tendering shareholders. HLEND attributed the quarter’s elevated request rate to the fund’s design as a periodic liquidity vehicle, noting that the quarterly repurchase framework is intended to align investor capital with the expected duration of private credit investments.
The Q2 rate accelerates from an already-elevated Q1. AltsWire reported in March that HLEND received requests totaling 9.3% of outstanding shares in the first quarter – the first time the fund had breached its repurchase cap since launch. The Q1 tender was fulfilled at approximately $610.8 million, with payment completed on or about April 30. Two weeks later, HLEND raised $600 million in notes due 2031 in a private placement to institutional investors to replenish financing capacity.
HLEND said it expects continued subscriptions and distribution reinvestment to more than offset repurchases during the first half of 2026. The fund reported approximately $7.2 billion in estimated total liquidity as of March 31, 2026, including $4.9 billion in available debt capacity, more than $700 million in cash on hand, and a $1.6 billion portfolio of liquid assets. Leverage stood at 1x, the low end of its target range.
Portfolio fundamentals remained strong through the period, according to the company. First lien senior secured loans made up more than 95% of the portfolio, with a weighted average loan-to-value of 39% and weighted average earnings before interest, taxes, depreciation, and amortization (EBITDA) of $251 million across HLEND’s private holdings. Portfolio companies grew both revenue and EBITDA at 11% on a trailing 12-month basis as of the end of March, and maintained a weighted average interest coverage ratio of 2.3x.
HLEND said direct lending credit spreads have begun to widen relative to late 2025 levels, making the opportunity set more attractive for new deployments.
Since inception through April 30, 2026, HLEND has delivered a 10.2% annualized net return for Class I shareholders, which the fund said represents a 3.8% premium above broadly syndicated loan returns over the same period. The annualized distribution rate for Class I shareholders was 9.9% as of May 2026.
HLEND is managed by HPS Investment Partners, which BlackRock acquired in July 2025 in an all-stock transaction valued at approximately $12 billion. The fund operates under BlackRock’s Private Financing Solutions platform while retaining the HPS brand. As of late 2025, HLEND had issued and sold approximately 517 million shares for total proceeds of approximately $13 billion, and carried a Baa2 long-term issuer rating from Moody’s – one of only two nontraded BDCs to hold that rating.
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