Highbridge Closes Specialty Loan Fund at $3 Billion
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Highbridge Closes Specialty Loan Fund at $3 Billion

Highbridge Principal Strategies (HPS) has held a final closing of HPS Specialty Loan Fund III with total capital of over $3 billion. The new fund will invest primarily in newly issued, secured debt in refinancings, acquisitions and restructurings by middle-market companies, as well as companies in special situations.

“Investor response to the HPS Specialty Loan Fund has been extremely positive and we’re appreciative of the trust and confidence our investors have demonstrated in our platform and investment team,” said Mike Patterson, Partner of HPS and Portfolio Manager for the HPS Specialty Loan Fund. “In the current credit environment, we have seen significant opportunities for our specialty direct lending group to develop customized financing solutions for companies that do not have efficient access to the capital markets, either because of their size or the complexity of their particular situation.”

“The fund seeks to leverage the existing imbalance in supply and demand for secured direct debt capital,” said Scott Kapnick, Chief Executive Officer of HPS and Managing Partner of Highbridge Capital Management. “We believe investors have an appetite to be active in this space, and the Specialty Loan Fund offers an opportunity to do so with an organization with the scale, world-class due diligence resources and risk management capabilities of Highbridge Principal Strategies.”

Highbridge Principal Strategies is a credit and private investment firm with approximately $16 billion of assets under management. The firm invests across the capital structure in the public and private capital markets and includes mezzanine debt investments, specialty direct lending, public credit securities, growth equity and leveraged loans. HPS is a subsidiary of Highbridge Capital Management and J.P. Morgan Asset Management. The firm is based in New York (www.highbridge.com).

The closing of HPS Specialty Loan Fund III is the second recent fund closing for Highbridge. In March, the firm closed HPS Mezzanine Partners Fund II with total capital of over $5 billion. This new mezzanine fund invests primarily in subordinated debt securities across a range of industries with a focus on North America and Western Europe.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-20-13

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