Hayfin ‘not actively seeking a buyer’

Founding stakeholder TowerBrook said to have ended its planned sale of direct lender, Hayfin.

The sale of London-based private debt firm Hayfin Capital Management was dropped late last year, sources with knowledge of the situation said. There is no planned sale in the works now, they said.

Talks with a group of potential buyers came to a close after the transaction was deemed overly complicated, PDI understands. There is no active programme underway to try and seek a buyer, one source said.

A potential sale of Hayfin by majority and founding stakeholder, private equity group TowerBrook Capital Management, emerged in the summer of 2014. An exit by TowerBrook had been well-flagged to potential investors in Hayfin’s debt funds during the preceding 18 months, as previously reported by PDI.

Talks with potential buyers, reported to include US investment firm Guggenheim Partners and alternative lender Ares Management, finished in late 2014, ending a deal reportedly worth between £600 and £700 million. UBS was advising on the sale. A typical holding period for a private equity asset is between three to five years, so having founded Hayfin in 2009, it appeared that TowerBrook had decided to monetise its investment.

Other investors in Hayfin include OMERS, Public Sector Pension Investment Board of Canada and Future Fund.

Hayfin and TowerBrook declined to comment. OMERS, PSP Investments, Future Fund and UBS had not responded to a request for comment at time of publication.

Hayfin, which lends to European mid-market corporates, was set up by a number of former Goldman Sachs veterans and employs around 50 people. Headquartered in London, the firm also has offices in Amsterdam, Paris, Madrid, Luxembourg, Frankfurt and New York. Hayfin’s chief executive, Tim Flynn, was previously a partner at Goldman Sachs, where he co-headed the European leveraged finance and acquisition finance business, according to the firm’s website.

Last year, Hayfin raised a €2 billion direct lending fund and a €1 billion separately managed account.