Hayfin markets USD 500m healthcare-focused private credit fund

Josh O'Neill and Maryna Irkliyenko
27 February 2023

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Hayfin is raising a dedicated private debt fund that will focus solely on credit investments in the healthcare sector, four sources familiar with the situation told sister publication Debtwire.

The direct lender is seeking to raise around USD 500m for the fund, which has already held its first close, according to the first and second sources.

The vehicle, which is thought to be one of the first of its kind, will be distinct from Hayfin's direct lending and special opportunities funds, through which it has historically made direct loans to private and public healthcare companies, the first source said.

Through its new healthcare-focused fund, Hayfin will be able to target opportunities that do not necessarily fit within its existing private debt strategies, the second source continued. Investments could include ARR-based direct loans to cashflow-negative, high-growth healthcare companies, the second source added.

The fund will have a transatlantic investment mandate, enabling Hayfin to make direct loans to European and US-based healthcare companies, the first source said.

Hayfin typically gravitates towards credit opportunities within healthcare products and services, including pharmaceuticals and generics, medical devices, business-to-business solutions and services, contract manufacturing, and research, the second source pointed out. Companies operating in these sub-verticals tend to showcase higher gross margins and revenue durability, therefore providing stronger underwriting conviction, this source explained.

Around a quarter of Hayfin's private credit investments have been deployed into healthcare companies, the second source said. Hayfin employs at least nine staff in the UK and US who focus solely on healthcare credit investments, this source added.

In addition to its healthcare-focused private credit fund, Hayfin is seeking to raise around EUR 6bn for its fourth flagship direct lending fund, according to a report published in December by Bloomberg.

Founded in 2009, Hayfin's strategies span direct lending, special opportunities and high-yield credit. The asset manager has deployed more than EUR 35bn across 470 companies, according to its website.

Hayfin declined to comment.