Hayfin closes second direct lending fund on €3.6bn

Hayfin Direct Lending Fund II raised over €1bn more than its predecessor.

Hayfin Capital Management has reached a final close of €3.6 billion on its second direct lending strategy, the firm said.

Hayfin Direct Lending Fund II was targeting €2.25 billion, according to PDI data, and investors included private and public pension funds, insurance companies and endowments, the firm added. 

It closed its first direct lending fund in 2014 with just over €2 billion raised. 

The investor base for DLF II is global in nature. According to PDI data, two US-based investors – the San Antonio Fire and Police Pension Fund and Tennessee Consolidated Retirement System – are among LPs in the fund. 

DLF II, which makes senior-secured loans to mid-market companies, is targeting a return of 8-10 percent. 

London-based Hayfin also has a special situations fund, investing in undervalued credit opportunities. These are of a greater complexity and the targeted internal rate of return is approximately 15-20 percent. 

A spokesman for the firm, which has around €9.3 billion in assets under management, was unavailable for comment.