Private Credit Fund Takes Rare Step of Limiting Inflows to Cope With Demand
- Firm sacrifices fees in favor of flexibility on investments
- Fund managers with dry powder under pressure on returns
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HPS Investment Partners has taken the rare step of limiting inflows in one of its funds to manage a surge in demand for private credit, according to people familiar with the matter.
The cap on the $10 billion HPS Corporate Lending Fund is set to shrink contributions from its main distributor, JPMorgan Chase & Co., said the people, who asked not to be named discussing a private matter. The investors that get turned down, who are mostly wealthy individuals, will be put on a waitlist, the people said.