Haymarket Financial Raises $1.8 Billion for Loan Fund

Haymarket Financial LLP, the investment firm started by former Goldman Sachs Group Inc. partner Tim Flynn, raised 1.35 billion euros ($1.8 billion) for its first special situations fund, said two people with direct knowledge of the matter.

The amount is almost three times what the firm initially sought, said the people, who asked not to be identified because the talks are private. Hayfin Special Opportunities Credit Fund will mainly buy senior debt of small and medium-sized European companies and extend loans to borrowers that are struggling to get bank financing, the people said. It won’t try to seek control of borrowers, they added.

The firm scaled back investors’ pledges after receiving commitments for more than the fund’s 1.35 billion-euro maximum, the people said. The fundraising took about a year, the people added. Separately, Haymarket has begun marketing a direct lending fund, Hayfin European Direct Lending Fund, the people said. The pool, which will offer loans to mid-market European companies, has a 1.4 billion-euro target.

Officials at Haymarket declined to comment on the fundraisings. Flynn was formerly co-head of European leveraged finance at Goldman Sachs.

The firm was started in 2009 with backing from investors including private equity firm TowerBrook Capital Partners LP, Public Sector Pension Investment Board of Canada and OMERS Private Equity Inc. The firm oversees more than 3.5 billion euros and has offices in London, Frankfurt, Paris and Madrid. It plans to open an office in the Netherlands later this year, one of the people said.

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