Hayfin Raises $3.8 Billion New Money for Direct Lending Strategy

  • New money pledged by new and existing institutional investors
  • Fund continues strategy of lending across capital structure

Hayfin Capital Management LLP, a London-based business lender founded by Goldman Sachs Group Inc. alumni, has reached a final close of 3.6 billion euros ($3.8 billion) for its European direct-lending fund, the firm said in a statement on Friday.

Hayfin raised the capital from new and existing institutional investors, including public pension funds, sovereign wealth funds, insurance companies and endowments. The fund will stick to Hayfin’s strategy of lending across the capital structure, the company said.

Founded in 2009 by Tim Flynn, the former co-head of European leverage and acquisition finance at Goldman Sachs, Hayfin has provided more than €9 billion in loans to over 200, mainly middle-market European companies.

In January, British Columbia Investment Management Corporation acquired a majority shareholding in Hayfin from the firm’s previous consortium of institutional shareholders.

Non-bank lending has become more frequent since the financial crisis prompted tighter regulation of how much risk traditional banks can carry on their balance sheets. Private equity firms such as Permira are increasingly turning their hands to providing loans to companies sometimes shunned by banks.

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