Home Alts News HPS Corporate Lending Fund Increases Monthly Distributions

HPS Corporate Lending Fund Increases Monthly Distributions

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HPS Corporate Lending Fund, a perpetual-life non-traded business development company sponsored by HPS Investment Partners, announced that the company increased its monthly distribution amounts from $0.1464 per share to $0.1600 per share and introduced a monthly variable supplemental distribution of $0.0210 per share.

The monthly variable supplemental distribution of $0.0210 per share in aggregate represents a 9.1% total annualized distribution yield for class I common shares.

The January 2023 monthly distribution for each class of common shares will be payable to shareholders around Jan. 31, 2023, and will be paid about Feb. 28, 2023.

HPS says the increase in the base distribution and the introduction of the monthly variable supplemental distribution reflects the “fund’s earnings growth as a result of a more mature portfolio mix, ramping leverage levels over time, the accretive effect of recent higher-spread investment activity, and the overall impact of rising rates on the Fund’s portfolio, which is 99% floating rate.”

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. As of Oct. 1, 2022, the fund has issued 133.8 million shares for total consideration of $3.3 billion.

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