Blue Owl Credit Income Corp. and the HPS Corporate Lending Fund each posted negative returns for February, marking the worst monthly performance for these private credit pools since 2022. The declines track with a pronounced monthly fall in the leveraged loan market, which also registered its steepest drop since 2022.
According to calculations based on regulatory filings, Blue Owl Credit Income Corp., a non-traded business development company, fell 0.86% in February. The HPS Corporate Lending Fund, which manages about $26 billion, recorded a 0.3% decline for the month as reported on its website.
Although both funds slid in February, their year-to-date records diverged. The larger Blue Owl vehicle, with roughly $35 billion in assets, showed a year-to-date loss of approximately 0.75% - its worst start to a year since it began investing in 2021. By contrast, the HPS fund returned 0.51% for 2026, making it one of the few major peers to remain in positive territory so far this year. Apollo Debt Solutions also reported a year-to-date gain of 0.39%.
Market participants are noting the February reversals against a backdrop of elevated redemption activity for private credit funds. Those redemptions coincide with the period of weakness, adding pressure to funds that experienced the monthly declines.
The February results highlight how performance across private credit strategies can vary significantly even as the leveraged loan market moves broadly lower. Blue Owl’s fund experienced the most pronounced year-to-date setback among the mentioned funds, while HPS and Apollo retained modest positive returns despite the monthly losses.
Context limitations: The information reported here reflects the specific performance numbers and fund sizes as provided and does not attempt to attribute causes or outcomes beyond the data stated. No additional figures or external sources are introduced.