London-based Hayfin Capital Management has raised over €6 billion ($6.5 billion), marking the largest capital raise to date for the €30 billion firm.
Officials said they expect the total available capital to be at or near the fund’s hard cap of €7 billion by the end of the year once Hayfin Direct Lending Fund IV reaches its final close, along with certain related investment vehicles. The firm’s previous vintage exceeded €5 billion in 2020.
Hayfin was advised on the fundraise by Macfarlanes.
“We are delighted to have achieved this successful fundraise for the latest vintage of our Direct Lending strategy against a challenging macroeconomic backdrop,” said Hayfin Co-founder and CEO Tim Flynn in a statement. “Our investors have signaled their strong belief in our well-resourced and specialist team, our diverse origination model and our robust track record of disciplined lending and capital preservation, and we are grateful for their continued trust.”
The investment team, which spans 12 global offices, is set to originate, structure and invest in performing senior secured loans, primarily to European middle-market and upper-middle-market companies with an emphasis on downside protection. The local sourcing teams have also been charged with buying attractively priced senior loans in the secondary market.
As banks continue to reduce their risk appetite and issuance in the leveraged finance market remains weak, Hayfin views itself as well positioned to meet the demand for private credit solutions by high-quality borrowers with attractive terms.
“Hayfin was founded in 2009, in the aftermath of the global financial crisis, which saw traditional banks’ appetite for corporate lending recede sharply. The recent market dislocation and the sluggish recovery of the leveraged finance market presents another attractive environment for Hayfin to deploy capital into both mid-market and upper-mid-market financings,” Flynn added. “We believe that we remain well positioned to meet borrowers’ demand for private credit solutions on terms that offer strong risk-adjusted returns to our clients.”
Since its founding, Hayfin has invested across more than 470 portfolio companies via its private credit strategies.