Secondary buyers offer fund investors liquidity at steep discounts
BX•Cox Capital Partners launched offers for shares in Blackstone Private Credit Fund and HPS Corporate Lending Fund at discounts of 12.5% and 17.5% to their reported net asset values, after both funds’ third-quarter repurchase programmes were oversubscribed.
1. Tender offers launched
Cox Capital Partners is offering $20.65 per Blackstone Private Credit Fund share, compared with its August 31 net asset value of $23.60, and $20.17 per HPS Corporate Lending Fund share, compared with its July 31 NAV of $24.45. The initial offers cover up to $20 million of shares in each fund, with Cox reserving the right to buy more.
2. Redemption requests ease
Repurchase requests reached about 10% of Blackstone Private Credit Fund shares and 11.5% of HPS shares, against fund-run quarterly repurchase targets of around 5%. Across 13 non-traded BDCs that price shares at NAV, third-quarter requests totalled $9.6 billion, or 10.1% of estimated tender-offer NAV, down from 11.2% in the second quarter. The funds met about 47% of requests, leaving $5.1 billion unmet.
3. Backlogs remain
Redemption requests at Ares Management’s Strategic Income Fund, Apollo’s Debt Solutions BDC and Morgan Stanley’s North Haven Private Income Fund fell from the previous quarter. Stanger said eight NAV BDCs representing about $28 billion of estimated NAV had yet to report third-quarter tender results, including two Blue Owl funds that received second-quarter requests equal to 18.8% and 38.1% of NAV.
