HPS Corporate Lending Fund Annual Report - How They Did This Year

Hey there! Thinking about investing in HPS Corporate Lending Fund? Let's break down their past year. We'll give you a clear picture of what they do and how they're performing, using plain language.

What Kind of Investments Do They Make?

HPS Corporate Lending Fund mainly lends money to other companies. They focus on private, mid-sized businesses. Most of these are "first-priority loans." This means if a company they lend to struggles financially, the Fund is usually first in line to get paid back. This makes these investments more secure. They are less risky than other loans or ownership stakes, and they still provide good income. As of December 31, 2025, the Fund held about $2.5 billion in total investments. These included loans to over 150 different companies.

They spread their investments across a wide range of industries. This is a smart way to reduce risk by not putting all their eggs in one basket. As of the end of 2025, their investments include loans to companies in many different sectors, such as:

• Aerospace (companies involved in aircraft and space technology)
• Automobile Components (parts manufacturers for cars)
• Food Products & Beverages (about 8% of all investments)
• Building Products (materials for construction)
• Capital Markets & Financial Services (banks, investment firms, etc.)
• Chemicals
• Commercial Services & Supplies (businesses that provide services to other businesses)
• Healthcare (equipment, supplies, and service providers, making up about 12% of all investments, their biggest sector)
• Entertainment
• Utilities (electric and gas companies)
• ...and many more, including areas like Air Freight & Logistics, Broadline Retail, Construction & Engineering, and Telecommunications.

This wide spread of investments across more than 20 industries means they're not overly reliant on the success of just one industry or a small number of borrowers. The average loan size is around $16 million, further contributing to diversification.

How Did They Perform This Year?

This year, HPS Corporate Lending Fund performed well. This shows how stable its portfolio of top-priority loans is. For the year ended December 31, 2025, the Fund brought in $225 million in total income from its investments. Most of this came from interest payments on its many loans. After paying running costs and interest on money it borrowed, the Fund's profit from investments (NII) was $120 million. This profit provides a strong base for payments to investors.

The value of each share (NAV) grew by 3.5% this year. It went from $15.00 per share at the start of the year to $15.53 per share by December 31, 2025. This growth happened because its investments increased in value and the Fund kept some of its profits.

For investors, the Fund paid out $1.20 per share in total payments this year. This means a return of about 8.0% based on the share value at year-end. These steady payments are important for investors who want regular income.

The overall health of the Fund's loans remained strong. 98% of loans were being paid back on time. Only 2% of its investments were 'non-accrual,' meaning interest payments were very late or unlikely to be collected. This low rate of unpaid loans shows they choose loans carefully and watch them closely. The Fund kept a sensible borrowing level, with its debt-to-equity ratio at 0.8x. This is well within its set goals and rules. It means they use their money wisely without taking on too much risk.