Key Takeaways
- • Cox Capital Partners launched three concurrent cash tender offers for Class I shares of HPS Corporate Lending Fund (HLEND), Apollo Debt Solutions BDC (ADS), and Ares Strategic Income Fund (ASIF) on July 14, 2026, with aggregate consideration of approximately $30.5 million.
- • Offer prices represent discounts of 15% to 30% to reported May 31, 2026 NAV: HLEND at $18.40 (25% discount to $24.53 NAV), ADS at $16.71 (30% discount to $23.87 NAV), and ASIF at $22.95 (15% discount to $27.00 NAV).
- • The tender offers provide secondary liquidity to shareholders following oversubscribed issuer repurchase programs, with expiration dates ranging from August 17 to August 24, 2026, and are managed through Cox Capital Retail Secondaries Fund I, LP.
- • Significant NAV discounts reflect market conditions in non-traded private credit BDCs, where Fitch Ratings reported 10.3% average redemption requests and liquidity challenges persist across the sector.
- • Cox Capital and the purchaser operate independently from the target funds and their advisers, with offers structured as separate, voluntary transactions subject to published offer documents.
Summary
Cox Capital Partners announced the commencement of three separate cash tender offers on July 14, 2026, targeting Class I shares of three major non-traded business development companies specializing in private credit and debt solutions. The transactions aggregate approximately $30.5 million in consideration and represent a strategic secondary liquidity initiative following elevated redemption activity within the non-traded BDC space.
The three target funds and their respective offer structures reflect varying discount levels to NAV. HPS Corporate Lending Fund (HLEND), which focuses on senior secured private credit investments in upper-middle market companies, is offered at $18.40 per share—a 25% discount to its May 31, 2026 reported NAV of $24.53. Apollo Debt Solutions BDC (ADS) carries the steepest discount at 30%, priced at $16.71 against a $23.87 NAV. Ares Strategic Income Fund (ASIF) offers the smallest discount at 15%, with an offer price of $22.95 compared to a $27.00 NAV. Submission deadlines span from August 17 to August 24, 2026, at 5:00 p.m. Eastern Time.
The tender offers underscore structural challenges within non-traded private credit vehicles. According to available market data, Fitch Ratings documented 10.3% average redemption requests across non-traded BDCs, indicating significant shareholder demand for liquidity. Cox Capital's secondary offers provide an alternative exit mechanism following what the source materials describe as "oversubscribed issuer repurchase programs," suggesting that primary fund redemption windows have proven insufficient to meet shareholder liquidity needs. The 15% to 30% discount range reflects the cost of immediate secondary-market liquidity in an environment where private credit valuations face headwinds.
Cox Capital Retail Secondaries Fund I, LP manages the purchasing function, maintaining operational independence from the target funds and their advisers. Offer materials and submission procedures are available through CoxCapitalPortal.com, with each tender structured as a separate, voluntary transaction governed by individual Offer to Purchase and Assignment Forms. This liquidity solution addresses a critical pain point for retail shareholders in non-traded vehicles seeking redemption alternatives outside standard fund windows.
The three target funds and their respective offer structures reflect varying discount levels to NAV. HPS Corporate Lending Fund (HLEND), which focuses on senior secured private credit investments in upper-middle market companies, is offered at $18.40 per share—a 25% discount to its May 31, 2026 reported NAV of $24.53. Apollo Debt Solutions BDC (ADS) carries the steepest discount at 30%, priced at $16.71 against a $23.87 NAV. Ares Strategic Income Fund (ASIF) offers the smallest discount at 15%, with an offer price of $22.95 compared to a $27.00 NAV. Submission deadlines span from August 17 to August 24, 2026, at 5:00 p.m. Eastern Time.
The tender offers underscore structural challenges within non-traded private credit vehicles. According to available market data, Fitch Ratings documented 10.3% average redemption requests across non-traded BDCs, indicating significant shareholder demand for liquidity. Cox Capital's secondary offers provide an alternative exit mechanism following what the source materials describe as "oversubscribed issuer repurchase programs," suggesting that primary fund redemption windows have proven insufficient to meet shareholder liquidity needs. The 15% to 30% discount range reflects the cost of immediate secondary-market liquidity in an environment where private credit valuations face headwinds.
Cox Capital Retail Secondaries Fund I, LP manages the purchasing function, maintaining operational independence from the target funds and their advisers. Offer materials and submission procedures are available through CoxCapitalPortal.com, with each tender structured as a separate, voluntary transaction governed by individual Offer to Purchase and Assignment Forms. This liquidity solution addresses a critical pain point for retail shareholders in non-traded vehicles seeking redemption alternatives outside standard fund windows.
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