Abu Dhabi's Lunate Considers Minority Stake in HPS Investment Partners Amid Bidding War for Initial Public Offering

Lunate, an Abu Dhabi-based asset manager, is contemplating acquiring a minority stake in HPS Investment Partners, a private credit firm that is evaluating options for an initial public offering or a sale. This potential investment comes amid a burgeoning interest in the private credit market, which has attracted several rival groups looking to capitalize on the opportunity. A bidding war for HPS is expected to significantly increase the wealth of its three founders as they face competition from other interested parties. Notably, Sixth Street, Bridgepoint, and First Eagle Investment Management are also pursuing Kline Hill Partners, a firm specializing in secondary investments, indicating a broader trend of consolidation and investment in the private credit sector.