The HPScast

Each season, we dedicate one episode to discussing current credit market trends. In this season’s episode, we discuss the Fed’s recent rate hike and what higher borrowing costs mean for credit, how software credit has recovered since this spring’s AI-driven sell off, and where private and public credit investors are finding opportunity in financing the AI build out. Our discussion, hosted by Colbert Cannon, features Vikas Keswani, HPS’s Head of Direct Lending, Serge Adam, a Portfolio Manager of Multi-Asset Credit here at HPS, and Dominique Bly, a Macro Credit Research Strategist within BlackRock's Private Financing Solutions platform.
 

On this week's episode of The HPScast, host Colbert Cannon sits down with James Lumby and Todd Hooper, leaders of HPS's GP-LP Financing Solutions business, to explore the world of NAV financing and the range of private financing alternatives. Both former high-level rugby players who built parallel careers in London finance, James and Todd trace their paths to the Goldman Sachs desk where they spotted a business opportunity while working on a portfolio-financing transaction.

They offer a deep dive into the GP-LP financing landscape: how NAV financing grew from a nascent product into an institutional mainstay, why COVID proved a catalyst for the market, and the newer frontiers of management-company and limited partner-level financing. James and Todd also discuss what helps a lender win in this space.

Learn more about Todd’s & James’ work at HPS here. Check out my Best Idea for this week, the 2016 movie The Nice Guys, here.

This week on The HPScast, host Colbert Cannon catches up with John McAuley, Global Co-Head of Debt Capital Markets at Citigroup, one of the world's largest investment banks. John traces his path into finance—a decision that began as a means to an end and has grown into a 26-year tenure at Citigroup. He discusses his entrée into what would now be called private credit at TD Bank, and a short stint in investment banking at Schroders before arriving at Citigroup through the firm's acquisition of Schroders. 

Today, John brings breadth and depth of expertise to his work, from navigating the 2008 financial crisis to witnessing the booms and busts of seemingly "bulletproof" industries. He shares his read on the AI financing boom, and we learn more about HPS and Citigroup's new partnership to pursue direct lending across Europe and the Middle East.

Learn more about John and Citigroup’s partnership with HPS Investment Partners here. Check out Colbert’s Best Idea for this week, the European crime thriller series Pagan Peak, here.

AI may be the most talked-about theme in markets today, but what does it actually mean for private credit investors? In this podcast, Grishma Parekh, Vikas Keswani, and Rob Kostow discuss how AI is changing company fundamentals, influencing investment opportunities, and creating both risks and rewards across the private credit landscape.

On this week's episode of The HPScast, host Colbert Cannon sits down with Sergio Méndez, Country Head of BlackRock Mexico, to explore his role in the country's investing landscape and its mandatory pension system, the Afores. Sergio traces his path into finance—from the trading floor during Mexico's 1994 tequila crisis, through a formative stint in the U.S.—and the lessons he carried home while running investments for Mexico's largest pension fund before joining BlackRock. Then, he offers a deep dive into the Mexican financial landscape: its evolving pension system, a robust and growing retail business, and how BlackRock is helping connect investors with opportunities in energy and infrastructure to meet the rising energy demand from data centers and the broader technology transition.

Learn more about Sergio and his work at BlackRock Mexico here. Check out Sergio's Best Idea for this week, the book The Price of Peace: Money, Democracy, and the Life of John Maynard Keynes by Zachary Carter, here.

This week on the HPScast, host Colbert Cannon speaks with Seth Cohen, a leader of HPS's asset-based finance business. Seth traces his unconventional path from criminal investigator with the D.C. Public Defender to the Legal Aid Society, and eventually the business world, where he scaled specialty finance platforms at MagnaCare and Franklin Credit before moving to the investing side at Silver Point and building CarVal's asset-based finance business over 15 years. He and Colbert discuss what asset-based finance means, how the BlackRock combination impacts sourcing, and where Seth sees new opportunities as the platform scales. 

Learn more about Seth and his work at HPS here. Explore HPS's Asset-Based Finance platform here. Watch Colbert's Best Idea for this week, True Romance, the 1993 cult classic directed by Tony Scott from Quentin Tarantino's first screenplay, streaming now on Netflix here.

Welcome to Season 14 of The HPScast. This week, host Colbert Cannon sits down with Rob Kapito, co-founder and President of BlackRock. Rob shares his path from pumping gas at his family's garage to the trading floors of First Boston, and the eventual decision to join Larry Fink and a small group to build what would become the world's largest asset manager with $15+ trillion currently under management. Rob walks through the pivotal chapters of the BlackRock story, including the transformative Merrill Lynch and Barclays Global Investors deals, and the firm's latest evolution in private markets through the acquisitions of GIP and HPS. Plus, Rob discusses how he continues to focus on impact outside of work through Hope & Heroes, an organization that funds life-saving work on childhood cancer and blood disorders.

Learn more about Rob and his work at BlackRock here. You can find out how to get involved with Hope and Heroes here. Check out Rob's Best Idea for this week, the book Margin by Richard Swenson, here—and watch Colbert's Best Idea for this week, Somm, here.

We’ve reached the end of Season 13 of The HPScast. To close out a fantastic run, host Colbert Cannon revisits some of the season’s most memorable moments. This year, we heard from leaders at the top of their fields, including a legendary global financial executive, an American fashion icon, and a powerhouse in the hospitality industry, as well as colleagues from across HPS and BlackRock who shared valuable insights.

The entire HPS team extends a sincere thank you to our guests and listeners for joining us. We’ll be taking a short break, but we look forward to returning soon with all-new conversations in Season 14.

This week on the HPScast, host Colbert Cannon sits down with Jim Koman, Founder and CEO of ElmTree Funds, a triple-net-lease real estate investment platform that recently combined with BlackRock. Jim reflects on growing up in St. Louis, studying economics at the University of North Carolina at Chapel Hill, and building a career in commercial real estate that led to founding ElmTree. Jim shares his perspective on how the current interest rate environment is affecting the net-lease market.

Learn more about Jim and his work with ElmTree Funds here. Read Project Hail Mary, a science fiction novel by Andy Weir, Jim’s Best Idea, here. Read Colbert’s Best Idea for this week, The Carolina Way, by legendary University of North Carolina basketball coach Dean Smith, co-authored with Gerald D. Bell and John Kilgo, here.

This week on the HPScast, host Colbert Cannon speaks with Elyce Arons, the co-founder of Kate Spade and co-founder and CEO of Frances Valentine. Elyce traces her journey from a Kansas farm kid to building two iconic American fashion brands with her best friend, the late Kate Spade. She reflects on losing Kate in 2018 and finding the resolve to keep their second fashion and lifestyle label, Frances Valentine, flourishing in her honor. She also shares what’s coming up for the brand, including a truly full-circle collaboration with the Mary Tyler Moore Vision Initiative. 

Learn more about Elyce and her work at Frances Valentine here. Read Elyce’s memoir, We Might Just Make It After All, here—or, her Best Idea, Strangers: A Memoir of Marriage, here. Watch Colbert’s Best Idea for this week, Dept. Q, a British crime thriller television series created by Scott Frank and Chandni Lakhani, here.