Lunate and HPS Launch Strategic Solutions Partners Platform

HPS Investment Partners (HPS), one of the largest global investment managers focused on alternative credit, and Lunate, an independent global investment firm with over $110 billion in assets under management, have announced a strategic collaboration to launch the HPS Strategic Solutions Partners Platform.

The Platform, whose launch is subject to customary market and regulatory approvals, will focus on making privately negotiated preferred and common equity investments as well as related debt investments in sponsor and non-sponsor owned large corporates, primarily in the US and Europe.

As part of the launch, Lunate, an Abu Dhabi-based, partner-led, independent global alternative investment manager, will anchor the Platform with a projected long-term commitment of at least $1 billion. The BlackRock-owned HPS and Lunate will also work together to facilitate access to the newly established Platform for MENA-based investors.

The growth of the market for private credit is accelerating globally, and large businesses are increasingly turning to structured and privately negotiated capital solutions to meet their financing needs. The growth in demand for capital is being met with limited supply of available capital, creating a compelling opportunity for experienced investment platforms that can deliver customized solutions at scale.

Together, Lunate and HPS have built on their long-standing relationship to co-create a platform that seeks to capture this opportunity set and create value for corporates and investors alike.

The Platform will seek to utilise a rigorous investment selection process to identify mature companies with stable business models that historically demonstrate stronger resilience and deliver bespoke financing solutions to support their strategic growth objectives.

The companies also said that they will work together to provide MENA-based investors access to the Platform, as they seek to capitalise on growing global demand for private credit.

It may be recalled that Lunate formed a strategic partnership with the US-based alternative asset manager Blackstone to develop a new platform earlier this year to build a $5 billion portfolio of Grade A logistics assets across the GCC region.

Tapping Attractive Opportunities

Scot French, Founding Partner and Co-President of HPS, said that market dynamics continued 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,” he added.

Lunate’s Managing Partner Khalifa Al Suwaidi said that they were excited to collaborate with HPS to launch this new Platform, providing their clients access to differentiated strategies in the global private credit market.

Leveraging HPS’ successful track record in deploying investments across markets and cycles, the partnership is built on resilience and adaptability, positioning us for long-term success, he added.

HPS CEO Scott Kapnick said that they were looking forward to deepen their collaboration with Lunate as HPS was seeking to identify and capitalise on new market opportunities they believe have the potential to deliver even greater value to the clients and portfolio companies.