Hayfin exceeds EUR 6bn target for fourth direct lending fund

The fundraise comprises the commingled Fund IV, which has reached a final close, and certain related investment vehicles, according to a press release dated 18 August.

It represents Hayfin’s largest capital-raise to date, exceeding the around EUR 5bn raised for the previous vintage of its direct lending strategy in 2020, as well as a record fundraise for its flagship private credit strategy, the firm said in the release.

Fundraising for Fund IV began in March 2021, according to a source familiar with the matter.

With banks reducing their risk appetite and new issuance levels in the leveraged finance market remaining weak since early 2022, the firm believes Fund IV is well-positioned to meet the growing demand for private credit solutions, as per the press release.

Investors
The firm attracted capital commitments from both new and existing LPs, it said, comprising public and private pension funds, financial institutions, insurance companies, sovereign wealth funds, funds of funds, endowments, consultants and family offices.

Investments
At a time of high competition in the direct lending market, Hayfin will target primarily European middle-market and upper-middle-market companies through its senior-secured loans offering, according to the press release.

It typically invests throughout the credit cycle with an emphasis on downside protection. It expects the recent market dislocation and the sluggish recovery of the leveraged finance market to present an attractive environment for its proposition, it said.

Hayfin primarily originates investment opportunities through its local sourcing teams, spread across 12 offices globally, and its sector-specialist teams, it said.

It might opportunistically acquire attractively-priced senior loans in the secondary market as well.

Since it was founded in 2009, the firm has invested more than EUR 35bn across more than 470 portfolio companies via its private credit strategies.

The firm has also been reviewing a range of fund and asset opportunities as it eyes GPs’ growing need for flexible co-investments and GP-led solutions, Unquote reported in March 2023. This strategy is focused on direct deals, such as single-asset GP-leds, co-investments and equity injections in existing assets.

It also recently established a healthcare-focused private credit fund, as reported.

Hayfin declined to comment beyond the press release.

People
Hayfin − Tim Flynn (CEO & founder).

Advisers
Hayfin – Macfarlanes (fundraising adviser).

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