Lunate And HPS Investment Partners Collaborate To Launch Strategic Solutions Partners Platform For Private Credit Investments

HPS Investment Partners and Lunate have announced a strategic collaboration to introduce the HPS Strategic Solutions Partners Platform. This initiative will focus on privately negotiated investments in preferred and common equity, along with related debt investments, targeting large corporations primarily in the US and Europe. Lunate plans to anchor this platform with a long-term commitment of at least $1 billion.

The demand for private credit is growing globally as large companies increasingly seek structured capital solutions. However, there is a limited supply of available capital, presenting an opportunity for experienced investment platforms to provide tailored solutions at scale. The new platform aims to address this gap by offering bespoke financing options to support corporate growth.

Lunate and HPS have leveraged their longstanding relationship to co-create this platform, aiming to capture emerging opportunities and deliver value for both corporates and investors. The platform will employ a rigorous investment selection process, focusing on mature companies with stable business models that demonstrate resilience.

Scot French, Founding Partner and Co-President of HPS, stated, "Market dynamics continue to create attractive opportunities for customised, scaled capital solutions, as both sponsor and non-sponsor owned large companies seek flexible sources of financing. Our relationship with Lunate will enhance our ability to capture these opportunities as we look to strategically scale our dedicated capital base across preferred and common equity strategies."

HPS and Lunate are also working together to facilitate access for investors based in the Middle East and North Africa (MENA) region. This collaboration aims to provide these investors with access to differentiated strategies within the global private credit market.

Khalifa Al Suwaidi, Managing Partner of Lunate, expressed enthusiasm about the partnership: "We are excited to collaborate with HPS to launch this new Platform, providing our clients access to differentiated strategies in the global private credit market. Leveraging HPS’ successful track record in deploying investments across markets and cycles, our partnership is built on resilience and adaptability, positioning us for long-term success."

Future Prospects and Approvals

The launch of the platform is contingent upon customary market and regulatory approvals. Both firms are optimistic about deepening their collaboration as they aim to identify new market opportunities that could deliver significant value to clients and portfolio companies.

Scott Kapnick, Chief Executive Officer of HPS, added: "We are pleased to partner with Lunate and look forward to deepening our collaboration as we seek to identify and capitalise on new market opportunities we believe have the potential to deliver even greater value to our clients and portfolio companies."

This strategic move by HPS Investment Partners and Lunate highlights their commitment to addressing the growing demand for private credit solutions while providing investors with unique opportunities in a competitive market landscape.

With inputs from WAM