Blue Owl and BlackRock HPS Private Credit Fund recorded losses in February, marking the worst performance in over three years.

MaticHoleFiller · 2026-03-29T01:48:09+00:00

Private credit funds face new challenges, with February's performance marking the worst in three years. Blue Owl Capital and BlackRock's HPS fund also declined, by 0.86% and 0.3% respectively. Despite the overall weakness, Blue Owl had its worst start since 2021, while HPS still posted positive returns.

MaticHoleFiller

2026-03-29 01:48:09

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The private credit funds under pressure from large-scale redemptions are facing new pain points: the losses in February marked the worst performance in over three years.

Blue Owl Capital and HPS Investment Partners, a subsidiary of BlackRock, both large funds aimed at retail investors, recorded negative returns in February, similar to their peers.

According to calculations by Bloomberg based on regulatory filings, the non-listed business development company Blue Owl Credit Income Corp. fell by 0.86% in February. The HPS Corporate Lending Fund, which has a scale of $26 billion, dropped by 0.3% that month. For both funds, this represents their worst monthly performance since 2022, aligning with the trend of the leveraged loan market experiencing its largest monthly decline since that year.

Despite relatively weak performance in February, the performance of these funds has varied this year. The $35 billion Blue Owl fund is experiencing its worst start since it began investing in 2021, with losses of about 0.75%. On the other hand, the HPS fund has still recorded a positive return of 0.51% since 2026, which is quite rare among its major peers. Apollo Debt Solutions has also seen an increase this year, with a rise of 0.39%.

Representatives from Blue Owl, BlackRock, and Apollo all declined to comment.

Massive information and precise interpretation are all available on the Sina Finance APP.

Editor: Liu Mingliang

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