HLEND says its loans are primarily to mature private companies with stable cash flows, and structured to be paid back first if the borrower goes bankrupt. It pays dividends monthly.

  According to company documents, 19% of HLEND's portfolio is tied up in software, a sector  that has  faced aggressive selling as investors fear disruption from AI-first startups.

  Investors are also rushing to safe  havens as markets reel with heightened volatility this year, amid mounting concerns of an economic slowdown from a prolonged conflict in the Middle East, AI-fueled disruptions and loan defaults.