Fireside Chat, Interview
Scott Kapnick, Founder & CEO of HPS Investment Partners, LLC
- Private credit markets, currently valued at $1.5 trillion, are projected to grow at an annual rate of 15% for the foreseeable future, potentially doubling or tripling in size to accommodate borrower preference for certainty over syndicated loans and facilitate billion-dollar growth capital deals.
- Investor returns in private markets are anticipated to range from 6% to 15% or higher across the risk spectrum, with the firm expecting to navigate potential recessional stress while maintaining financial system stability through significant equity capital buffers and investments in companies with hundreds of millions in EBITDA.
- Germany is expected to realign its manufacturing sector toward low-cost energy sources within a couple of years, creating substantial capital opportunities for the firm to support the funding of these structural changes.
- Supply chain resiliency initiatives are predicted to drive increased operational costs and capital duplication, resulting in reduced corporate profits and a corresponding rise in capital deployment requirements.
- Energy security debates are forecast to shift toward a realization of the necessity for carbon-based energy, with renewables gaining prominence during crises driven by price increases while demand for fungible energy sources remains strong.
- Sustainable global growth over the next 10 years is identified as critical for economic continuity and poverty reduction, requiring leaders to adapt to evolving environments where safety is prioritized as a primary organizational mandate.
- The firm intends to support educational access through asset management scholarships and internships at Howard University, fostering a long-term career perspective that expects employees to remain for 90 to 100 years, avoid frequent job hopping, and receive mentorship from senior leaders focused on women and minorities.