HPS Investment Partners - Exits/Comps/Brand
Hi guys,
Have been doing some digging around HPS Investment Partners (fka Highbridge Principal Strategies), but it seems like there are not a lot of information about the firm out there after the buyout from JPM. Anyone can shed some light on the firm's exit opps, comp range, and brand name?
All inputs are welcome, thanks!
Very strong all around. Majority of shop is ex-Goldman (CEO was like top 3 guy at all of Goldman) and know several guys from Goldman that left to join them (from GS lev fin and other). Have seen them on some deals, very sophisticated and have industry specific experts it looked like. I only know about their mezz fund but all together they have over 35 billion AUM. No clue on comp but guessing likely MF type pay to pull the talent they have.
Very well regarded shop.
They have US$45bn in funds under management now (including a US$15bn mezzanine fund, one of the largest in the world). Very active in the private equity financing space. They invest from top of the capital structure (senior secured debt) all the way down to preferred equity. They do the same DD as the sponsor and often are considered partners in the deal rather than just a finance provider. They are flexible with their approach to loans and often work with the sponsor during difficult times. The firm is run by some very well regarded names (CEO was ex-head of Global Investment Banking at GS). Compensation is up there with mega PE funds. Hours are longer than your typical buyside shop but that is because deal teams are leaner and you work on more complex transactions. No different to working at a credit arm of a Megafund PE shop
Good stuff mate - does their fund have lower return hurdles? Seeing as they also do senior debt...
I believe that they have different funds for the different seniority they look at.
Two separate funds for Direct Lending (senior orientation) and Mezzanine (believe this is the legacy fund, doing junior/second lien). Both can write large checks. Senior yield target is more in line with a hairier middle market situation (L+600+).
They also have a unitranche JV product with CapOne - they can suck down $300mm deals no problem. It's kind of insane.
Solid shop in Europe. Very sharp people when I met some of them. Flies a bit under the radar alongside ICG compared to other credit funds of their size. Exit opps - they seem to promote a lot internally, not sure why you’d leave but the name shouldn’t block you from moving. Some went back to banking from there, moved from Mezz/Pref Equity to PE.
Very well respected credit shop mostly in private credit, less known for public distressed but as mentioned above, their mezz / higher target IRR pool of capital does some interesting deals (like Sears financing recently).
They recently acquired a Dallas based distressed group called Talamud to bolster their public distress presence. Think they run like 500-750mm of capital targeting public distressed names nowadays.
Work with HPS a lot - agree with the above that they are very astute credit investors. Can lend in pretty sticky situations with fairly thorough diligence process in time sensitive situations
I’m guessing that this is for direct lending when they take an entire tranche?
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