Private Credit Portfolio Analysis | HPS Corporate Lending Fund Reports Q1 2025 Results
- Editor
- May 14
- 2 min read
Whats New:
HPS Corporate Lending Fund reported its Q1 2025 financial results, showing significant growth in assets and stockholders' equity compared to the previous quarter. The fund's total assets increased to $19.18 billion as of March 31, 2025, up from $16.63 billion at the end of 2024. This growth was accompanied by an increase in debt and investments owned at fair value.
Portfolio Dynamics:
Total assets grew to $19.18 billion as of March 31, 2025, compared to $16.63 billion at the end of 2024.
Investments owned at fair value increased to $18.43 billion, up from $16.13 billion at the end of 2024.
Cash and cash equivalents rose to $434.31 million from $228.90 million at the end of 2024.
Investment Activity:
Receivable from investment sales increased to $79.01 million from $32.43 million at the end of 2024.
Derivative assets grew to $53.74 million from $43.00 million at the end of 2024.
Payable for investment purchases rose to $125.53 million from $75.49 million at the end of 2024.
Capital Structure:
Long-term and short-term debt combined increased to $8.94 billion from $7.45 billion at the end of 2024.
Stockholders' equity grew to $9.64 billion from $8.73 billion at the end of 2024.
Additional paid-in capital increased to $9.47 billion from $8.52 billion at the end of 2024.
Performance Profile:
Net income for Q1 2025 was $186.38 million.
Unrealized gains on investments were $69.46 million for Q1 2025.
Realized losses on investments were $19.89 million for Q1 2025.
Risk & Quality:
The fund reported an incentive fee payable of $33.73 million, up from $32.01 million at the end of 2024.
Capital gains incentive fees payable decreased to $6.91 million from $12.95 million at the end of 2024.
Management fee payable increased to $19.59 million from $9.38 million at the end of 2024.
The Wrap:
HPS Corporate Lending Fund demonstrated strong growth in Q1 2025, with significant increases in total assets, investments at fair value, and stockholders' equity. The fund's debt levels also rose, reflecting increased leverage. While the fund reported substantial net income and unrealized gains, it also faced realized losses on investments. The increase in various fee payables suggests higher costs associated with the fund's expanded operations and investment activities.
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