Blue Owl and HPS Funds record their largest monthly loss since 2022 — Bloomberg

LootboxPhobia · 2026-03-27T21:29:13+00:00

In February, both Blue Owl Capital Inc. and HPS Investment Partners, a private credit fund under BlackRock, posted negative returns, marking the worst performance in three years. The Blue Owl fund lost 0.86%, while the HPS fund declined by 0.3%. Nevertheless, year-to-date, the HPS fund has performed better, with a 0.51% return.

LootboxPhobia

2026-03-27 21:29:13

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Investing.com - Blue Owl Capital Inc. and BlackRock’s HPS Investment Partners recorded negative returns in February, marking the worst monthly performance for their private credit funds in over three years, Bloomberg reported on Friday.

According to Bloomberg’s calculations based on regulatory filings, the non-traded business development company Blue Owl Credit Income Corp. lost 0.86% in February. According to its website, the $26 billion HPS Corporate Lending Fund fell 0.3% that month. The losses for both funds are the most severe since 2022, aligning with the largest monthly decline in the leveraged loan market since then.

Despite declines in February, the year-to-date performance of these two funds diverged. The $35 billion Blue Owl fund recorded a loss of about 0.75% this year, marking the worst annual start for the fund since it began investing in 2021. The HPS fund achieved a return of 0.51% in 2025, becoming one of the few major peer funds to maintain positive returns.

Apollo Debt Solutions also recorded positive returns this year, with a return rate of 0.39%. These losses in February come at a time when private credit funds are facing significant redemptions.

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