Hayfin raises $3.7 bln for European direct lending strategy

Hayfin Capital Management LLP, which recently agreed to be acquired by British Columbia Investment Management Corp (bcIMC), has raised about US$3.7 billion (€3.5 billion) for its European direct lending strategy. London-based Hayfin said the funds were raised from new and existing global institutional investors and will be used to extend senior loans to European mid-market companies in various industries. Last month, bcIMC struck a deal to buy a majority stake in Hayfin from TowerBrook Capital Partners, PSP Investments, Ontario Municipal Employees Retirement System (OMERS) and Future Fund.

PRESS RELEASE

Hayfin raises in excess of €3.5bn for European direct lending strategy

February 24th 2017

Hayfin Capital Management LLP (“Hayfin” or “the firm”), a leading European credit platform, today announces the successful completion of the latest fundraising process for its European direct lending strategy, attracting total commitments in excess of €3.5bn.

Hayfin attracted commitments from a wide range of new and existing institutional investors across the globe, comprising public and private pension funds, sovereign wealth funds, insurance companies, and endowments. Consistent with its first direct lending fund, Hayfin will continue to extend loans at the senior-secured level of the capital structure to performing European middle-market companies from a range of industries.

Hayfin was founded in 2009 and has since grown to be one of Europe’s best-established direct lenders, meeting the growing demand from middle-market companies for competitive and flexible access to credit. Its team of 65 professionals based across eight offices is able to both directly source and structure investment opportunities and participate as the anchor investor in bank-driven processes.

Tim Flynn, CEO of Hayfin Capital Management, commented: “We’re delighted to have consolidated our position as one of Europe’s leading credit platforms by successfully reaching a final close on our record direct lending fund. The heightened demand from investors reflects the ongoing success of Hayfin’s direct lending strategy, which is predicated on the established local lending relationships of our experienced pan-European team. Combined with these broad-based deal origination capabilities, this capital-raise provides the firepower required to consistently lead mid-cap transactions throughout the continent, distinguishing Hayfin from the majority of smaller-scale direct lenders within the European market.”

Hayfin will continue its direct lending strategy alongside its special opportunities strategy, through which it makes opportunistic investments in undervalued credit assets with a higher degree of complexity, and complementary business lines in liquid credit, maritime finance, healthcare, and alternative credit. Since inception, Hayfin has extended more than €10bn in loans to over 230, predominantly middle-market European companies.

Source: Hayfin Capital Management LLP

Photo courtesy of Reuters/Leonhard Foeger