HPS Corporate Capital Solutions Fund Doubles Assets, Net Income Soars

TL;DR

HPS Corporate Capital Solutions Fund is aggressively expanding its portfolio and leveraging debt, indicating a bullish stance on its investment strategy despite rising expenses and realized losses.

AI Summary

HPS Corporate Capital Solutions Fund reported a significant increase in total assets, reaching $2,052,842 thousand as of September 30, 2025, up from $1,010,558 thousand at December 31, 2024. This growth was primarily driven by an increase in investments at fair value to $1,998,196 thousand from $984,954 thousand, and a substantial rise in debt to $892,266 thousand from $289,761 thousand. Net investment income after excise tax for the nine months ended September 30, 2025, surged to $74,628 thousand, a considerable increase from $29,247 thousand for the same period in 2024. Total investment income more than doubled to $115,322 thousand from $38,605 thousand, largely due to higher interest income. Expenses also increased, with interest expense rising to $27,785 thousand from $8,937 thousand, and management fees to $8,554 thousand from $2,540 thousand. The fund experienced a net realized loss of $11,003 thousand for the nine months ended September 30, 2025, compared to a gain of $299 thousand in the prior year, primarily from non-controlled/non-affiliated investments and foreign currency forward contracts. Despite this, net assets increased to $1,097,659 thousand from $651,874 thousand, reflecting strong operational performance and capital raises.

Why It Matters

This substantial growth in assets and net investment income signals strong performance for HPS Corporate Capital Solutions Fund, potentially attracting more investors seeking exposure to private credit. The significant increase in debt, while supporting asset growth, also introduces higher leverage, which could amplify returns but also risks. For employees, this growth suggests stability and potential expansion. Customers of the fund's portfolio companies may see continued access to capital. In the broader market, this filing highlights the continued robust demand and activity in the corporate capital solutions sector, indicating a competitive landscape for similar funds.

Risk Assessment

Risk Level: medium — The fund's debt increased from $289,761 thousand to $892,266 thousand, a 207% increase, significantly raising its leverage. While net investment income grew, the net realized loss of $11,003 thousand for the nine months ended September 30, 2025, compared to a gain of $299 thousand in the prior year, indicates increased volatility in investment performance, particularly from foreign currency forward contracts and non-controlled/non-affiliated investments.

Analyst Insight

Investors should closely monitor HPS Corporate Capital Solutions Fund's debt-to-equity ratio and the performance of its non-controlled/non-affiliated investments, especially given the recent realized losses. While the growth in net investment income is positive, the increased leverage and realized losses warrant a cautious approach to new investments until a clearer trend in managing these risks emerges.

Financial Highlights

debt To Equity

0.81

revenue

$115,322,000

operating Margin

64.7%

total Assets

$2,052,842,000

total Debt

$892,266,000

net Income

$74,628,000

eps

$26.78

gross Margin

N/A

cash Position

$27,261,000

revenue Growth

200%

Revenue Breakdown

Key Numbers

• $2.05B — Total Assets (Increased from $1.01B at December 31, 2024, reflecting significant growth.)
• $1.10B — Total Net Assets (Increased from $651.87M at December 31, 2024, indicating strong capital growth.)
• $892.27M — Total Debt (Increased from $289.76M at December 31, 2024, showing increased leverage.)
• $74.63M — Net Investment Income (9 months) (Increased from $29.25M in the prior year, demonstrating improved operational profitability.)
• $115.32M — Total Investment Income (9 months) (Increased from $38.61M in the prior year, driven by higher interest income.)
• $11.00M — Net Realized Loss (9 months) (Compared to a $299K gain in the prior year, indicating increased investment volatility.)
• 40,991,579 — Common Shares Outstanding (Increased from 25,084,285 shares at December 31, 2024, reflecting capital raises.)
• $26.78 — Net Asset Value Per Class D Share (Increased from $25.99 at December 31, 2024, showing shareholder value appreciation.)

Key Players & Entities

• HPS Corporate Capital Solutions Fund (company) — Registrant
• HPS Advisors, LLC (company) — Adviser
• $2,052,842 thousand (dollar_amount) — Total assets as of September 30, 2025
• $1,010,558 thousand (dollar_amount) — Total assets as of December 31, 2024
• $1,998,196 thousand (dollar_amount) — Total investments at fair value as of September 30, 2025
• $984,954 thousand (dollar_amount) — Total investments at fair value as of December 31, 2024
• $892,266 thousand (dollar_amount) — Debt as of September 30, 2025
• $289,761 thousand (dollar_amount) — Debt as of December 31, 2024
• $74,628 thousand (dollar_amount) — Net investment income after excise tax for nine months ended September 30, 2025
• $11,003 thousand (dollar_amount) — Net realized loss for nine months ended September 30, 2025

FAQ

Risk Factors

• Increased Leverage [high — financial]: Total debt increased substantially from $289.76 million to $892.27 million. This increased leverage amplifies both potential gains and losses, making the fund more sensitive to interest rate fluctuations and credit events.
• Investment Volatility [medium — market]: The fund experienced a net realized loss of $11.00 million for the nine months ended September 30, 2025, a significant shift from a $299,000 gain in the prior year. This indicates increased volatility in the investment portfolio, particularly from non-controlled/non-affiliated investments and derivative instruments.
• Increased Expenses [medium — operational]: Total expenses rose due to higher interest expense ($27.79 million vs. $8.94 million) and management fees ($8.55 million vs. $2.54 million). While revenue growth outpaced expense growth, continued increases in operating costs could pressure future profitability.
• Complex Investment Strategies [low — regulatory]: The fund's investments in non-controlled/affiliated entities and use of derivative instruments (foreign currency forward contracts) introduce complexity and potential regulatory scrutiny. Changes in accounting standards or regulatory interpretations could impact valuations and reporting.

Industry Context

The corporate credit market, where HPS Corporate Capital Solutions Fund operates, is characterized by increasing demand for flexible financing solutions from middle-market companies. This environment often involves complex debt structures and a higher degree of credit risk compared to traditional fixed income. Competition is significant, with numerous specialized credit funds vying for deal flow.

Regulatory Implications

As a registered investment company, the fund is subject to regulations under the Investment Company Act of 1940, including rules on leverage, disclosure, and asset coverage. Changes in interest rate policies by central banks and evolving accounting standards for financial instruments can also impact the fund's operations and reporting.

What Investors Should Do

1. Monitor leverage levels closely.
2. Evaluate the impact of realized losses.
3. Assess the sustainability of income growth.
4. Review expense structure.

Key Dates

• 2025-09-30: Quarterly Report Filing (10-Q) — Provides updated financial performance, asset/liability positions, and operational results for the nine months ended September 30, 2025.
• 2024-12-31: Previous Fiscal Year End — Establishes the baseline for comparison of asset growth, debt levels, and net asset value changes.

Glossary

Non-controlled/non-affiliated investments

Investments in companies where the fund does not have significant influence or control, and is not affiliated with the investee. (These investments contributed to both the growth in assets and the realized losses reported in the period.)

Amortized cost

The initial cost of an investment, adjusted over time to account for amortization of premium or accretion of discount, and principal repayments. (Used to track the cost basis of investments, which is important for calculating realized gains and losses.)

Derivative assets/liabilities

Financial instruments whose value is derived from an underlying asset, index, or rate. They can be used for hedging or speculation. (The fund holds derivative assets and liabilities, which contributed to realized losses and introduce market risk.)

Distributable earnings (loss)

The cumulative net investment income earned by the fund, less distributions paid to shareholders. (Indicates the retained earnings available for future distributions.)

Additional paid in capital

The amount of capital contributed by investors in excess of the par value of the shares. (Reflects the total capital raised from shareholders beyond the nominal share value.)

Year-Over-Year Comparison

Compared to December 31, 2024, HPS Corporate Capital Solutions Fund has experienced substantial growth, with total assets more than doubling to $2.05 billion. This growth is mirrored in net assets, which increased to $1.10 billion. However, this expansion has been financed by a significant increase in debt, which rose from $289.76 million to $892.27 million, indicating a higher leverage ratio. While net investment income more than doubled to $74.63 million, driven by strong interest income, the fund also saw a notable shift to a net realized loss of $11.00 million from a prior gain, suggesting increased investment risk.

Key Financial Figures

• $0.01 — Yes No The Registrant's Common Shares, $0.01 par value per share, outstanding as of

Filing Documents

• hps-20250930.htm (10-Q) — 5646KB
• exhibit311q3202510q.htm (EX-31.1) — 10KB
• exhibit312q3202510q.htm (EX-31.2) — 10KB
• exhibit321q3202510q.htm (EX-32.1) — 4KB
• exhibit322q3202510q.htm (EX-32.2) — 4KB
• 0001989817-25-000085.txt ( ) — 25630KB
• hps-20250930.xsd (EX-101.SCH) — 81KB
• hps-20250930_cal.xml (EX-101.CAL) — 87KB
• hps-20250930_def.xml (EX-101.DEF) — 574KB
• hps-20250930_lab.xml (EX-101.LAB) — 822KB
• hps-20250930_pre.xml (EX-101.PRE) — 666KB
• hps-20250930_htm.xml (XML) — 5395KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 30 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 65 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 85 Item 4.

Controls and Procedures

Controls and Procedures 86 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 87 Item 1A.

Risk Factors

Risk Factors 87 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 87 Item 3. Defaults Upon Senior Securities 87 Item 4. Mine Safety Disclosures 88 Item 5. Other Information 88 Item 6. Exhibits 88

Signatures

Signatures Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about HPS Corporate Capital Solutions Fund (together, with its consolidated subsidiaries, the "Company", "we" or "our"), our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation: our future operating results; our business prospects and the prospects of our portfolio companies, including our and their ability to achieve our respective objectives as a result of inflation, the imposition of tariffs, increases in borrowing costs and a potential global recession; the impact of geo-political conditions, including revolution, insurgency, terrorism or war, including those arising out of the ongoing conflict between Russia and Ukraine and the broader Middle East conflict; the impact of the investments that we expect to make; our ability to raise sufficient capital to execute our investment strategy; our current and expected financing arrange

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements. HPS Corporate Capital Solutions Fund Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) September 30, 2025 December 31, 2024 ASSETS (Unaudited) Investments at fair value Non-controlled/non-affiliated investments (amortized cost of $ 1,961,170 and $ 982,565 at September 30, 2025 and December 31, 2024, respectively) $ 1,988,809 $ 984,954 Non-controlled/affiliated investments (amortized cost of $ 9,369 and $ 0 at September 30, 2025 and December 31, 2024, respectively) 9,387 — Total investments at fair value (amortized cost of $ 1,970,539 and $ 982,565 at September 30, 2025 and December 31, 2024, respectively) 1,998,196 984,954 Cash and cash equivalents 27,261 10,296 Interest receivable from non-controlled/non-affiliated investments 14,946 8,172 Deferred financing costs 6,028 3,698 Deferred offering costs 190 516 Derivative assets, at fair value (Note 6) 1,937 2,579 Receivable for investments 3,870 140 Other assets 414 203 Total assets $ 2,052,842 $ 1,010,558 LIABILITIES Debt (net of unamortized debt issuance costs of $ 1,912 and $ 0 at September 30, 2025 and December 31, 2024, respectively) $ 892,266 $ 289,761 Payable for investments purchased 18,779 14,087 Interest payable 4,331 1,155 Due to affiliates 3,780 818 Distribution payable (Note 9) 20,044 28,907 Derivative liabilities, at fair value (Note 6) 1,975 — Payable for share repurchases (Note 9) 2,817 23,060 Management fees payable (Note 3) 3,311 — Income based incentive fees payable (Note 3) 4,110 — Capital gains incentive fees payable (Note 3) 2,058 896 Shareholder servicing and/or distribution fees payable 522 — Accrued expenses and other liabilities 1,190 — Total liabilities 955,183 358,684 Commitments and contingencies (Note 8) NET ASSETS Common Shares, $ 0.01 par value ( 40,991,579 and 25,084,285 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectiv

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