The Credit Edge by Bloomberg Intelligence Private Credit Heavyweight HPS Sees ‘Huge Opportunity’ in Fund Finance
Jul 3, 2025
Purnima Puri, Head of Liquid Credit and a founding partner at HPS Investment Partners, dives into the promising landscape of fund finance during this engaging discussion. She highlights the significant opportunity in net-asset-value lending, particularly for private equity sponsors. Puri also addresses the challenges posed by stagflation and the evolving dynamics of private versus public credit markets. Additionally, they explore the complexities of loan modifications and the impact of AI on private credit, showcasing the resilience required in today’s financial environment.
AI Snips
Chapters
Transcript
Episode notes
Private Credit Market Segmentation
- Private credit markets vary widely in competitiveness based on fund size and company revenue size.
- Larger funds handle bigger deals with more structural protections, maintaining better spread and terms.
Scale Impacts Competition & Terms
- Larger private credit vehicles focus on bigger companies, facing less competition and preserving stronger loan terms.
- Smaller funds and companies see much more competition and softer covenant protections.
Symbiotic Loan Market Relationship
- Private credit and syndicated loan markets have a symbiotic relationship with loans often switching between them.
- Volatility highlights the value of private credit as an alternative financing source when public markets are stressed.