HLEND Redemptions: HPS Corporate Lending Fund Paid 37.6% of Requests in Q2 2026

What HLEND is, in one paragraph

HLEND is HPS Investment Partners' private credit fund for individual investors: a business development company that lends mostly to large private companies, about 95% in first-lien senior secured loans, and sells shares every month at NAV through wealth-management platforms. It started operations in February 2022. HPS has been part of BlackRock since July 1, 2025, when the fund signed a new advisory agreement (8-K). At August 31, 2026 it reported $12.26 billion of NAV, $23.17 billion of investments and $11.22 billion of debt; the monthly 8-K lists $14.27 billion of shares sold in its public offering since launch. There is no market for the shares. The exit is the quarterly tender offer, which the fund targets at 5% of shares outstanding and can resize or suspend.

Eleven quarters of repurchases

Each row is the result the fund filed for that offer, in the Schedule TO-I/A it files when it launches the next one. The price is NAV per share at the quarter-end valuation date. Shares held less than a year are bought at 98% of NAV (the "Early Repurchase Deduction", per the 10-Q).

The turn is easy to date. Through 2024 requests used 13-28% of each offer. They rose to 33-48% in 2025 and to 82% in the December 2025 offer, which the fund still paid in full. In March 2026 requests were 185% of the limit and in June 266% (our arithmetic). Unlike BCRED, which paid one oversubscribed quarter in full using the extra 2% the tender rules allow, HLEND bought exactly its 5% each time. Its first-quarter letter put the rule plainly: "unfulfilled repurchase requests do not carry over automatically to the next tender offer period." A holder who wants out has to resubmit every quarter.

The third quarter, and the arithmetic of the queue

The September 11 letter (8-K, Ex. 99.1) gives the third-quarter number before the result is filed: requests of "approximately 11.5% of shares outstanding as of June 30, 2026," down from about 13.3% in the second quarter, and "HLEND will repurchase 5.0% of shares outstanding as of June 30, 2026, or approximately $600 million." That is about 43% of each request (our arithmetic). The offer expired September 4; the price is NAV at September 30, published in the late-October 8-K; the result is filed in the Schedule TO-I/A that accompanies the fourth-quarter offer, which on the fund's pattern means early November.

For a holder who asked to sell everything in March and put the remainder back in each quarter, the fills compound: 54.0% in Q1, 37.6% of the rest in Q2 and about 43% of what was left in Q3. That holder would have sold about 84% of the position by the time the Q3 offer settles (our arithmetic), at NAVs of $24.79, $24.42 and the September figure. A holder who did not resubmit got 54% and nothing since.

The fund's argument for the cap is in the same letters: the quarterly limit is "designed to align investor capital with the expected duration of private credit investments," and it says it bought back about $1.7 billion across the three periods ending June 30 "while keeping leverage essentially stable at the low end of its target range."

Why the queue formed: money in, money out

A 5% quarterly exit is easy while new money keeps coming in. The 10-Q shows what changed. Proceeds from shares sold across the four classes were $1,229.4 million in April-June 2025 and $310.9 million in April-June 2026, a drop of about 75% (our sums). Repurchases in the same quarter were $612.2 million net of the early-repurchase deduction. Counting reinvested distributions, share transactions took $194.8 million out of the fund in the second quarter; over the full first half they were still slightly positive, as the fund's June letter had expected.

The fund has not borrowed its way through the queue. Investments are down about $2.4 billion from January's peak and debt about $2.2 billion, and average leverage fell from 1.02x to 0.92x. It also kept issuing long-term notes, at a rising price: $400 million of 5.650% notes due 2031 priced in January 2026 and $600 million of 6.300% notes due 2031 in May (8-Ks of January 7 and May 13, 2026). The 10-Q's weighted average interest rate on all borrowings, which includes swaps and fee amortization, was still lower than a year earlier: 6.03% in Q2 2026 against 6.92% in Q2 2025.

NAV and the distribution

NAV per share was $25.59 at December 31, 2024 and $24.45 at August 31, 2026, down 4.5% (our arithmetic), two thirds of it between February and June 2026. The first half shows why: net investment income of $615.6 million, then $382.5 million of unrealized losses and $21.3 million of realized losses, for $211.8 million of operating results against $625.3 million of distributions. In February the fund published a Q&A on software, which it put at 19% of the private portfolio ($4.5 billion) at December 31, 2025. Non-accruals were small: six companies, 0.70% of debt and income-producing investments at fair value on June 30, 2026, against 0.74% at year-end.

The Class I distribution has two parts. The base is $0.16 a month and has not changed. The variable supplement was $0.055 through February 2026, then $0.050, $0.047, $0.044, $0.042 and $0.039 from July, so the total went from $0.2150 to $0.1990. At $0.1990 and the August NAV that is about 9.8% a year for Class I (our arithmetic; the fund quotes 9.8% for August). Income has broadly kept pace: net investment income was 99.3% of distributions in Q2 2026 and 98.4% in the first half (10-Q; our arithmetic), and the 10-Q says the adviser made no expense-support payments in 2025 or 2026.

Cox Capital's $18.40 offer

On July 27, 2026 HLEND filed an 8-K saying Cox Capital Retail Secondaries Fund I had made an unsolicited offer for up to 550,000 Class I shares at $18.40, "approximately 25% discount" to the $24.53 NAV of May 31, about 0.1% of the shares. The board "unanimously determined" the offer was not in holders' interest and "recommends that shareholders REJECT the Cox Capital Offer and do not tender their shares," arguing that Cox would then sit in the same quarterly queue at NAV and keep the difference. Cox has made the same kind of bid for BCRED, ASIF and others (every Cox offer on EDGAR).

For a holder, the trade on filed numbers (our arithmetic): $6.05 a share below the August NAV, paid once on everything sold, against NAV for roughly 40-55% of a request per quarter while the queue lasts. At $0.1990 a month, $6.05 is about 30 months of distributions.

What a holder can do with this

• If you tendered in Q2: you were paid 37.6% of the shares you tendered at $24.42 (98% of that if held under a year). The rest stayed invested. It does not roll over: you had to resubmit in Q3.
• If you tendered in Q3: the fund expects to buy about 43% of each request at the September 30 NAV. The result is filed in early November with the fourth-quarter offer.
• If you are deciding for Q4: the fill depends on everyone else's requests. They fell from 13.3% to 11.5% of shares between Q2 and Q3, and new money is about a quarter of last year's, so the queue shortens only if requests keep falling.
• What would change the math: inflows recovering, the board buying more than 5% (it has not so far), or requests dropping below 5%.

FAQ

All figures are from HLEND's SEC filings read on EDGAR on October 4, 2026: eleven Schedule TO-I/A result filings (February 2024 to August 2026) and the matching Schedule TO-I offers, the tender letters furnished as Ex. 99.1 to the 8-Ks of March 6, June 12 and September 11, 2026, 22 monthly Form 8-Ks (December 2024 to September 2026), the June 2026 Form 10-Q (accession 0001628280-26-056772), the note-pricing 8-Ks of January 7 and May 13, 2026, and the July 27, 2026 Form 8-K on Cox Capital. Proration percentages, request ratios, sums across share classes and the cumulative fill are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.