HPS Specialty Loan Fund VI slide image

HPS Specialty Loan Fund VI

HPS HPS's Specialty Direct Lending ("SLF") Strategy Opportunistic direct lending strategy, focused on larger borrowers, with ability to navigate market niches that we believe can offer attractive risk-adjusted returns Strategy Overview: Performing 1 Senior Secured Strategy 2 3 4 5 Upper Middle Market Orientation Opportunistic Approach Focus on Downside Protection Strong Market Positioning Targeting ~90%+ in first lien, floating rate, senior secured loans ▪ Current income orientation with the majority of assets expected to be cash pay with coupon income distributed quarterly Lending to upper middle market and large borrowers with average EBITDA of ~$100M+¹ Ability to strategically grow with borrowers over time Ability to navigate complexity to extract incremental value ▪ Few willing lenders with requisite expertise to assess special situations, providing an opportunity to capture excess returns Focus on capital preservation with downside protection Emphasis on quality of credit documents, structural protections, and seniority in the cap stack Known as a lender of scale with track record of non-sponsor and structuring capabilities HPS's flagship direct lending strategy with ~13 years of investing activity As of December 31, 2022, unless otherwise stated. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. This information is for illustrative purposes only and should not be interpreted as recommendations to buy or sell any securities. There can be no assurance that the Specialty Direct Lending ("SLF") strategy objectives will be realized or that the strategy will not experience losses. ¹ Based on the weighted average EBITDA of investments in HPS Specialty Loan Fund V and Specialty Loan Fund 2016 by total face value committed as of 09/30/22. 6
View entire presentation