UAE’s Lunate Said to Explore $1 Billion Stake in Credit Firm HPS

Lunate, the Abu Dhabi-based asset manager, is considering buying a minority stake in HPS Investment Partners as the private credit firm weighs an initial public offering or sale, according to people familiar with the matter.

Lunate is evaluating an investment of $1 billion or more into HPS, the people said, asking not to be identified as the information is private. HPS could also seek additional capital to manage as part of any transaction.

Lunate is the latest firm to show interest in HPS, which is pursuing a potential IPO that could value it at $10 billion or more. BlackRock ...