Key Takeaways
- • Cox Capital Retail Secondaries Fund I launched dual tender offers totaling up to $40 million ($20 million per fund) for Class I shares of Blackstone Private Credit Fund (BCRED) and HPS Corporate Lending Fund (HLEND), offering secondary liquidity following oversubscribed issuer repurchase programs.
- • BCRED shares priced at $20.65 per share, representing a 12.5% discount to the fund's August 31, 2026 NAV of $23.60; HLEND shares priced at $20.17 per share, representing a 17.5% discount to NAV—reflecting market pricing for non-traded BDC secondary positions.
- • Both target funds reported substantially oversubscribed Q3 2026 repurchase programs, with BCRED and HLEND receiving redemption requests representing approximately 10% and 11.5% of shares outstanding, respectively, versus their typical 5% quarterly repurchase target.
- • These tender offers serve as a supplementary liquidity mechanism independent of each fund's primary repurchase program, designed to accommodate shareholders whose full redemption requests were not satisfied by the funds' standard quarterly buyback allocations.
Summary
Cox Capital Partners announced the launch of two separate cash tender offers on September 28, 2026, targeting non-traded business development company shares in response to significant liquidity demand from private credit fund investors. Cox Capital Retail Secondaries Fund I, the purchasing entity, is seeking to acquire up to $20 million each of Class I shares in Blackstone Private Credit Fund (BCRED) and HPS Corporate Lending Fund (HLEND), with a combined capacity of $40 million.
The pricing reflects substantial secondary market discounts. BCRED shares are offered at $20.65 per share, a 12.5% discount to the fund's reported Class I NAV of $23.60 as of August 31, 2026. HLEND shares carry a steeper discount of 17.5%, priced at $20.17 per share. These discounts are consistent with broader market conditions for non-traded BDC secondary positions, where Cox Capital is simultaneously offering shares of other credit funds—reportedly purchasing Apollo fund shares at 70 cents on the dollar and Ares holdings at 85 cents on the dollar.
The tender offers emerge from constrained primary liquidity channels. Both BCRED and HLEND experienced substantially oversubscribed repurchase programs in Q3 2026, receiving redemption requests representing approximately 10% and 11.5% of shares outstanding, respectively. These requests significantly exceed each fund's standard quarterly repurchase framework, which typically targets 5% of shares outstanding, though both funds retain discretion to increase this allocation. Cox Capital positioned its secondary offers as complementary to—rather than substitutive of—the funds' established buyback programs, providing shareholders with an alternative path to liquidity when primary repurchase requests exceed available capacity.
According to Cox Capital's statement, the BCRED offer was developed partly in response to direct interest from specific shareholders, though the company elected to make the opportunity available more broadly to all eligible Class I shareholders. The firm emphasized that these tender offers were designed to provide financial advisors and their clients with additional exit options when a fund's own repurchase program cannot fully satisfy shareholder requests.
The pricing reflects substantial secondary market discounts. BCRED shares are offered at $20.65 per share, a 12.5% discount to the fund's reported Class I NAV of $23.60 as of August 31, 2026. HLEND shares carry a steeper discount of 17.5%, priced at $20.17 per share. These discounts are consistent with broader market conditions for non-traded BDC secondary positions, where Cox Capital is simultaneously offering shares of other credit funds—reportedly purchasing Apollo fund shares at 70 cents on the dollar and Ares holdings at 85 cents on the dollar.
The tender offers emerge from constrained primary liquidity channels. Both BCRED and HLEND experienced substantially oversubscribed repurchase programs in Q3 2026, receiving redemption requests representing approximately 10% and 11.5% of shares outstanding, respectively. These requests significantly exceed each fund's standard quarterly repurchase framework, which typically targets 5% of shares outstanding, though both funds retain discretion to increase this allocation. Cox Capital positioned its secondary offers as complementary to—rather than substitutive of—the funds' established buyback programs, providing shareholders with an alternative path to liquidity when primary repurchase requests exceed available capacity.
According to Cox Capital's statement, the BCRED offer was developed partly in response to direct interest from specific shareholders, though the company elected to make the opportunity available more broadly to all eligible Class I shareholders. The firm emphasized that these tender offers were designed to provide financial advisors and their clients with additional exit options when a fund's own repurchase program cannot fully satisfy shareholder requests.
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