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HPS amasses $21bn private credit fund as it plots expansion

Investment manager has doubled in size in four years and is now considering IPO or merger

HPS Investment Partners has raised one of the largest private credit funds on record, confirming its spot as one of the leaders in the industry as the firm debates a possible public listing or merger.

HPS amassed $21.1bn for its flagship Specialty Loan Fund VI, its largest fundraising since the firm was founded in 2007. The mammoth fund received $14.3bn of commitments from investors, one of the largest sums ever raised by a traditional direct lending fund, according to data provider Preqin. The $21.1bn figure also includes billions of dollars of bank loans, which increase its ability to invest.

The fundraising, following on the heels of a string of large hauls last year, comes as leaders at HPS consider options that could see the firm go public or merge with a rival private investment group, according to people briefed on the matter. The firm manages $114bn, more than double its size from the start of 2020.

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