Hayfin has closed its first direct lending fund on more than €2 billion, the firm confirmed in a statement. In addition, the firm raised a further €1 billion through separately managed accounts focused on the direct lending strategy, Private Debt Investor can reveal.
The firm had earlier raised its hard cap from €1.5 billion in response to the strong pace of deployment during its fundraising period and having obtained approval from existing investors, the firm said. In the last 12 months, it has already deployed more than €1 billion through the direct lending strategy, according to managing director Glenn Clarke.
The fund is understood to be the largest direct lending vehicle raised by a UK-based asset manager to date, surpassing the €1.5 billion raised by fellow UK manager ICG earlier this year.
Clarke said about 90 percent of the LPs who committed to the fund were new investors to Hayfin, and came from a broad geographical range encompassing Asia, the US and Europe. Hayfin has committed €250 million to the fund.
Hayfin launched fundraising for Hayfin Direct Lending Fund last January. The fund will target a 8 to 10 percent annual return, and will invest in senior secured loans issued to European mid-market companies. It will focus on “directly-originated opportunities where Hayfin can provide alternative financing salutation or supply capital as part of a more traditional bank-driven process”, the statement said.
Hayfin chief executive Tim Flynn commented: “We are delighted with the success of this fundraising which solidifies our footprint as one of the leading direct lending platforms in Europe. We attribute this to the team’s specialist experience, our local sourcing model and the attractive risk-adjusted returns that we have offered to investors. We believe that our local presence enables us to build long term partnerships with banks and mid-market borrowers, as well as take an active role in supporting a company’s development.”