BlackRock’s HPS Corporate Lending Fund (HLEND) has again restricted redemptions, the firm disclosed in a shareholder communication. The fund received repurchase requests equal to approximately 13.3% of shares outstanding as of March 31, 2026, and will satisfy repurchases up to 5% of shares outstanding on that date, which the fund says amounts to about $620 million.
This marks the second consecutive quarter in which HLEND has applied a cap on redemptions. The restriction is part of the fund’s mechanism for managing liquidity when requests exceed the predetermined repurchase threshold.
Performance figures disclosed by the fund show a 10.2% annualized total net return for Class I shareholders from inception through April 30, 2026. The fund reports that this performance represents a 3.8% premium relative to broadly syndicated loan total returns over the same period. As of May 2026, the annualized distribution rate for Class I shareholders stood at 9.9%.
On the liquidity front, HLEND reported estimated total liquidity of $7.2 billion as of March 31, 2026. That figure includes $4.9 billion of available debt capacity, in excess of $700 million of cash, and a $1.6 billion portfolio of liquid assets. The fund’s leverage remained at 1.0x, which the fund characterized as the low end of its target range.
The portfolio’s composition is concentrated in first lien senior secured loans, which made up more than 95% of holdings. For the fund’s private credit assets, the weighted average EBITDA was $251 million. Additional portfolio metrics include a weighted average loan-to-value ratio of 39% and a weighted average interest coverage ratio of 2.3x.
Operational results at the company level showed positive momentum, with portfolio companies reporting revenue and EBITDA growth of 11% on a trailing twelve-month basis as of March 31, 2026. Looking ahead, the fund expects that new subscriptions and distribution reinvestment will more than offset repurchases during the first six months of 2026.
Context and implications
The repetition of a redemption cap signals that demand for liquidity from investors outpaced the fund’s repurchase capacity for the reporting period. At the same time, the fund highlights sizable liquidity resources and conservative leverage, and it reports returns and distributions that management frames as favorable versus a syndicated loan benchmark.