HPS Corporate Capital Solutions Fund Eyes Private Debt Growth

Hps Corporate Capital Solutions Fund 10-K Filing Summary
FieldDetail
CompanyHps Corporate Capital Solutions Fund
Form Type10-K
Filed DateMar 24, 2026
Risk Levelhigh
Pages15
Reading Time18 min
Key Dollar Amounts$0.01, $75 million, $1 billion, $250 million, $5 billion
Sentimentmixed

Complexity: moderate

Sentiment: mixed

Topics: Private Credit, BDC, Leverage, Illiquid Investments, Upper Middle Market, Senior Secured Debt, Junior Capital

TL;DR

**HPS Corporate Capital Solutions Fund is a private credit play for sophisticated investors, but brace for illiquidity and leverage-magnified risks.**

AI Summary

HPS Corporate Capital Solutions Fund, a Delaware statutory trust formed on August 10, 2023, aims to generate attractive risk-adjusted returns through current income and long-term capital appreciation. The fund primarily invests in newly originated, privately negotiated senior secured debt and, to a lesser extent, junior capital of upper middle market and larger U.S. companies, defined as those with EBITDA of $75 million to $1 billion or revenue of $250 million to $5 billion. As of December 31, 2025, there was no public market for its common shares, which are offered privately under Regulation D and S. The fund converted its outstanding common shares into Class I, Class D, and Class S shares on July 1, 2025, with 11,897,386 Class I, 36,222,639 Class D, and 515 Class S shares outstanding as of March 17, 2026. HPS Corporate Capital Solutions Fund operates as a non-diversified, perpetual-life BDC and has elected to be treated as a Regulated Investment Company (RIC) for federal income tax purposes since December 31, 2024. The fund intends to use leverage, expecting a debt-to-equity ratio between 0.5x and 1.0x, subject to the 1940 Act's 2:1 limit, to enhance returns. Its investment strategy also includes a smaller allocation to liquid credit investments for liquidity management and opportunistic publicly traded securities.

Why It Matters

HPS Corporate Capital Solutions Fund's focus on privately negotiated senior secured debt and junior capital in the upper middle market offers investors exposure to a less liquid, potentially higher-yielding segment of the credit market, distinct from publicly traded BDCs. Its perpetual-life structure and private placement model mean limited liquidity for investors, a critical consideration compared to publicly traded alternatives. The fund's affiliation with HPS Investment Partners, a part of BlackRock, provides a competitive edge through extensive sourcing capabilities and investment expertise, potentially attracting sophisticated investors seeking differentiated credit strategies. The use of leverage, while enhancing returns, also amplifies risk, impacting the fund's overall risk profile for investors.

Risk Assessment

Risk Level: high — The fund explicitly states that an investment in it is 'Illiquid and There are Restrictions on Withdrawal,' indicating a significant barrier to exiting positions. Furthermore, the fund 'will continue to use leverage to seek to enhance our returns,' with an expected debt-to-equity ratio generally ranging between 0.5x and 1.0x, which magnifies both gains and losses, as noted in the 'Risk Factors - We are Subject to Risks Relating to the Use of Leverage' section.

Analyst Insight

Investors should carefully assess their liquidity needs and risk tolerance before considering HPS Corporate Capital Solutions Fund, given its illiquid nature and reliance on leverage. Due diligence should focus on the Adviser's track record in private credit and the specific terms of the share repurchase program, as the Board has discretion to suspend it.

Financial Highlights

debt To Equity
Not Disclosed
revenue
Not Disclosed
operating Margin
Not Disclosed
total Assets
Not Disclosed
total Debt
Not Disclosed
net Income
Not Disclosed
eps
Not Disclosed
gross Margin
Not Disclosed
cash Position
Not Disclosed
revenue Growth
Not Disclosed

Key Numbers

  • 11,897,386 — Class I Common Shares outstanding (As of March 17, 2026, indicating a significant portion of the fund's equity.)
  • 36,222,639 — Class D Common Shares outstanding (As of March 17, 2026, representing the largest class of shares.)
  • 515 — Class S Common Shares outstanding (As of March 17, 2026, indicating a smaller class of shares.)
  • 0.5x — Minimum expected debt-to-equity ratio (Illustrates the fund's intended use of leverage to enhance returns.)
  • 1.0x — Maximum expected debt-to-equity ratio (Highlights the upper end of the fund's target leverage range.)
  • 2:1 — Maximum debt to equity ratio allowed by 1940 Act (Regulatory limit on the fund's leverage.)
  • 70% — Minimum assets in eligible portfolio companies (BDC regulatory requirement for investment allocation.)
  • 80% — Minimum net assets plus borrowings in corporate instruments (Fund's normal investment allocation strategy.)
  • August 10, 2023 — Formation date of the fund (Indicates the fund's relatively recent establishment.)
  • July 1, 2025 — Date of Share Class Conversion (Marks the restructuring of the fund's share classes.)

Key Players & Entities

  • HPS Corporate Capital Solutions Fund (company) — Registrant
  • HPS Advisors, LLC (company) — Investment Adviser
  • HPS Investment Partners, LLC (company) — Administrator and parent of Adviser
  • BlackRock (company) — Parent company of HPS Investment Partners
  • SEC (regulator) — Securities and Exchange Commission
  • HPS Securities, LLC (company) — Managing Dealer for share offerings
  • Board of Trustees (company) — Governing body of the fund
  • $75 million (dollar_amount) — Minimum EBITDA for upper middle market companies
  • $1 billion (dollar_amount) — Maximum EBITDA for upper middle market companies
  • $25.00 (dollar_amount) — Initial purchase price per share

Forward-Looking Statements

  • The HPS Corporate Capital Solutions Fund will continue to file its annual reports in a timely manner, consistent with the 2026-03-24 filing date for the 2025 fiscal year. (HPS Corporate Capital Solutions Fund) — high confidence, target: 2027-03-31

FAQ

What is HPS Corporate Capital Solutions Fund's primary investment strategy?

HPS Corporate Capital Solutions Fund primarily invests in newly originated, privately negotiated senior secured debt and, to a lesser extent, junior capital of upper middle market or larger scale companies predominantly in the U.S. The fund also allocates a smaller portion to liquid credit investments and opportunistic publicly traded securities.

How does HPS Corporate Capital Solutions Fund define 'upper middle market' companies?

HPS Corporate Capital Solutions Fund generally defines 'upper middle market' companies as those with earnings before interest expense, income tax expense, depreciation and amortization (EBITDA) of $75 million to $1 billion annually or revenue of $250 million to $5 billion annually at the time of investment.

What is the risk level associated with investing in HPS Corporate Capital Solutions Fund?

The risk level is high due to the illiquid nature of its shares and the fund's stated intention to use leverage, with an expected debt-to-equity ratio between 0.5x and 1.0x, which magnifies both potential returns and losses.

What are the different share classes of HPS Corporate Capital Solutions Fund and their outstanding amounts?

As of March 17, 2026, HPS Corporate Capital Solutions Fund had 11,897,386 Class I Common Shares, 36,222,639 Class D Common Shares, and 515 Class S Common Shares outstanding. These classes were established on July 1, 2025.

Is HPS Corporate Capital Solutions Fund a publicly traded company?

No, HPS Corporate Capital Solutions Fund is a privately placed, perpetual-life BDC, meaning its shares are not listed for trading on a stock exchange or other securities market. Its common shares are offered and sold under exemptions from registration under Regulation D and Regulation S.

How does HPS Corporate Capital Solutions Fund use leverage?

HPS Corporate Capital Solutions Fund intends to use leverage to enhance its returns, expecting a debt-to-equity ratio generally ranging between 0.5x and 1.0x. This leverage can take the form of revolving or term loans, secured or unsecured bonds, or securitization of its investment portfolio.

Who manages the investment activities of HPS Corporate Capital Solutions Fund?

The investment activities of HPS Corporate Capital Solutions Fund are managed by HPS Advisors, LLC, an investment adviser registered with the SEC and a wholly-owned subsidiary of HPS Investment Partners, LLC.

What are the regulatory requirements for HPS Corporate Capital Solutions Fund as a BDC?

As a Business Development Company (BDC), HPS Corporate Capital Solutions Fund must invest at least 70% of its assets in 'eligible portfolio companies' and is subject to a maximum leverage limit of a 2:1 debt to equity ratio under the Investment Company Act of 1940.

When did HPS Corporate Capital Solutions Fund elect to be treated as a Regulated Investment Company (RIC)?

HPS Corporate Capital Solutions Fund elected to be treated for federal income tax purposes as a Regulated Investment Company (RIC) under Subchapter M of the Internal Revenue Code of 1986, as amended, beginning with its tax year ended December 31, 2024.

What is the role of BlackRock in relation to HPS Corporate Capital Solutions Fund?

HPS Investment Partners, LLC, the Administrator and parent of the fund's Adviser, HPS Advisors, LLC, is a part of BlackRock. This connection provides HPS Corporate Capital Solutions Fund with access to BlackRock's broader resources and investment personnel.

Risk Factors

  • BDC Status and 1940 Act Compliance [high — regulatory]: The fund operates as a non-diversified BDC under the 1940 Act, requiring adherence to specific investment allocation rules. It must invest at least 70% of its assets in eligible portfolio companies and at least 80% of its net assets plus borrowings in corporate instruments. Failure to comply could result in regulatory sanctions and impact its ability to operate as intended.
  • RIC Tax Election Compliance [high — regulatory]: The fund has elected to be treated as a RIC for federal income tax purposes since December 31, 2024. To maintain this status, it must meet certain income distribution and asset diversification requirements. Non-compliance could lead to taxation at the corporate level, significantly reducing returns to shareholders.
  • Leverage Risk [medium — financial]: The fund intends to use leverage, targeting a debt-to-equity ratio between 0.5x and 1.0x, with a regulatory limit of 2:1 under the 1940 Act. While leverage can enhance returns, it also magnifies losses and increases the fund's sensitivity to market downturns and interest rate fluctuations.
  • Private Credit Investment Risk [medium — market]: The primary investment strategy focuses on newly originated, privately negotiated senior secured debt and junior capital of upper middle market and larger U.S. companies. These investments are typically illiquid, and their valuation can be subjective, posing risks related to credit quality, default, and difficulty in exiting positions.
  • External Management and Administrator Reliance [low — operational]: The fund is externally managed by HPS Advisors, LLC, a subsidiary of HPS Investment Partners, LLC, which is part of BlackRock. Reliance on external managers introduces risks related to potential conflicts of interest, changes in management personnel, and the alignment of management's interests with those of the fund's shareholders.
  • Lack of Public Market [medium — market]: As of December 31, 2025, there was no public market for the fund's common shares, which are offered privately under Regulation D and S. This illiquidity means shareholders cannot easily sell their shares on an exchange, and redemption or sale opportunities may be limited.

Industry Context

The fund operates within the private credit market, a segment of the broader financial services industry focused on providing debt financing to companies, particularly those in the upper middle market. This sector is characterized by a demand for flexible, bespoke financing solutions that traditional banks may not offer. Key trends include the increasing institutionalization of private credit, the search for yield in a low-interest-rate environment, and evolving regulatory scrutiny.

Regulatory Implications

As a BDC, the fund is subject to the Investment Company Act of 1940, imposing strict rules on asset allocation, leverage, and reporting. Its RIC election requires adherence to specific income distribution and diversification tests to maintain tax-advantaged status. The private placement of shares under Regulation D and S also carries specific compliance obligations.

What Investors Should Do

  1. Review the fund's investment strategy and target company profile.
  2. Assess the implications of the fund's leverage strategy.
  3. Understand the illiquidity of private placements.
  4. Monitor compliance with BDC and RIC regulations.

Key Dates

  • 2023-08-10: Fund Formation — Marks the official establishment of HPS Corporate Capital Solutions Fund as a Delaware statutory trust.
  • 2024-12-31: RIC Election Effective Date — The fund elected to be treated as a Regulated Investment Company (RIC) for federal income tax purposes, impacting its tax structure and distribution requirements.
  • 2025-07-01: Share Class Conversion — All outstanding common shares were converted into Class I, Class D, and Class S shares, restructuring the fund's equity classes.
  • 2026-03-17: Share Class Outstanding Data — Provides specific counts for Class I (11,897,386), Class D (36,222,639), and Class S (515) shares, indicating the fund's equity structure at a recent date.

Glossary

BDC
Business Development Company. A type of closed-end investment company that invests in the securities of eligible small and mid-size U.S. companies and makes available managerial assistance. (HPS Corporate Capital Solutions Fund is registered as a BDC, subject to specific regulatory requirements under the 1940 Act.)
RIC
Regulated Investment Company. A U.S. tax term for a company that qualifies to be taxed as a mutual fund or a pass-through entity. (The fund has elected RIC status to avoid corporate-level taxation, provided it meets certain income and diversification requirements.)
1940 Act
The Investment Company Act of 1940. A U.S. federal law that regulates the organization of companies, including mutual funds, that engage in investing, reinvesting, and trading in securities, and whose primary purpose is to provide facilities for the pooling of securities and money that enable the financing of the development of new ventures and small businesses. (Governs the fund's operations, including leverage limits, diversification requirements, and reporting obligations.)
Perpetual-life BDC
A BDC whose shares are not listed on an exchange and are intended to be sold continuously at or near Net Asset Value (NAV). (Describes the fund's structure and the continuous offering of its shares, which are not publicly traded.)
NAV
Net Asset Value. The value of a fund's assets minus its liabilities, typically calculated per share. (The fund's shares are intended to be sold at a price generally equal to its NAV per share.)
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance. (Used to define the 'upper middle market' and 'larger scale' companies in which the fund primarily invests.)

Year-Over-Year Comparison

As this is the initial 10-K filing for HPS Corporate Capital Solutions Fund, which was formed on August 10, 2023, there is no prior year's filing to compare against. Key events such as the share class conversion on July 1, 2025, and the RIC tax election effective December 31, 2024, represent foundational steps for the fund's operations and structure.

Filing Stats: 4,466 words · 18 min read · ~15 pages · Grade level 14.3 · Accepted 2026-03-24 16:33:09

Key Financial Figures

  • $0.01 — es"). The Registrant's Common Shares, $0.01 par value per share, outstanding as of
  • $75 million — eciation and amortization ("EBITDA") of $75 million to $1 billion annually or revenue of $2
  • $1 billion — ortization ("EBITDA") of $75 million to $1 billion annually or revenue of $250 million to
  • $250 million — on to $1 billion annually or revenue of $250 million to $5 billion annually at the time of o
  • $5 billion — annually or revenue of $250 million to $5 billion annually at the time of our investment.
  • $25.00 — urchase price for our Common Shares was $25.00 per share. Thereafter, the purchase pri
  • $381 billion — integrated franchise with approximately $381 billion in client assets, including $254 billio
  • $254 billion — 381 billion in client assets, including $254 billion of private credit assets. 2 This combin
  • $1.8 — tinues to support the growth of today's $1.8 trillion private credit industry as of

Filing Documents

Properties

Properties 71 Item 3.

Legal Proceedings

Legal Proceedings 72 Item 4. Mine Safety Disclosur es 72 PART II Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 73 Item 6 . [Reserved] 76 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 77 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 94 Item 8. Consolidated Financial Statements and Supplementary Data 96 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 162 Item 9A.

Controls and Procedures

Controls and Procedures 162 Item 9B. Other Information 162 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 162 PART II I Item 10. Directors, Executive Officers and Corporate Governance 163 Item 11.

Executive Compensation

Executive Compensation 168 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 169 Item 13. Certain Relationships and Related Transactions, and Director Independence 170 Item 14. Principal Accounting Fees and Services 171 PART IV Item 15. Exhibits and Financial Statement Schedules 173 Item 16. Form 10-K Summary 175

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

Business

Item 1. Business. Our Company HPS Corporate Capital Solutions Fund was formed on August 10, 2023, as a Delaware statutory trust. We seek to invest primarily in newly originated, privately negotiated senior secured debt and, to a lesser extent, junior capital of upper middle market or larger scale companies predominantly in the U.S. Our investment objective is to produce attractive, risk adjusted returns in the form of current income and long-term capital appreciation. We are a non-diversified, closed-end management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). As a non-diversified investment company within the meaning of the 1940 Act, we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. We are externally managed by our adviser, HPS Advisors, LLC (the "Adviser"), a wholly-owned subsidiary of HPS Investment Partners, LLC (the "Administrator" or "HPS"). HPS is a part of BlackRock, one of the world's leading providers of investment, advisory, and risk management solutions. We have elected to be treated for federal income tax purposes as a regulated investment company (a "RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), beginning with our tax year ended December 31, 2024, and we intend to operate in a manner so as to continue to qualify as a RIC in each taxable year thereafter. We are a privately placed, perpetual-life BDC, which is a BDC whose shares are not listed for trading on a stock exchange or other securities market. We use the term "perpetual-life BDC" to describe an investment vehicle of indefinite duration, whose common shares of beneficial ownership are intended to be sold on a continuous basis at regular frequency by the BDC at a price generally equal to the BDC's net asset value ("NAV") per share. Our common shares of

View Full Filing

View this 10-K filing on SEC EDGAR

View on ReadTheFiling | About | Contact | Privacy | Terms

Data from SEC EDGAR. Not affiliated with the SEC. Not investment advice. © 2026 OpenDataHQ.