BCI Agrees to Sell Majority Stake in Hayfin
July 30 2024 - 5:32AM
UK Regulatory
BCI Agrees to Sell Majority Stake in Hayfin
- Will remain a strategic limited
partner in certain Hayfin funds post-closing
- Initially invested in the
leading alternative credit asset manager in 2017 and supported
growth of the platform
VICTORIA (BC), LONDON & NEW YORK, July 30, 2024 (GLOBE
NEWSWIRE) -- British Columbia Investment Management Corporation
(“BCI”), one of Canada’s largest institutional investors, today
announced it has entered into a definitive agreement with Arctos
Partners (“Arctos”), a private investment firm, to sell its
majority stake in Hayfin Capital Management (“Hayfin” or the
“Company”), a leading European-focused alternative asset management
firm. Following completion of the transaction, BCI will remain a
significant and strategic limited partner in certain key Hayfin
fund strategies.
BCI acquired a majority stake of Hayfin in 2017, after
identifying a compelling opportunity in the European market for
private credit, driven by regulatory and structural demand trends.
During its ownership, BCI made significant strategic investments to
support the continued growth of Hayfin’s strategies and worked with
management to grow the investment teams and platform capabilities
to ensure stable asset management and superior risk adjusted
performance. Hayfin experienced strong sustained growth and
momentum as a result, increasing assets under management from €8
billion at the time of investment to over €31 billion today.
Hayfin’s product offering now spans direct lending, special
situations, tactical solutions, high-yield/syndicated loans,
healthcare opportunities, maritime yield and private equity
solutions. Through the course of its ownership, BCI provided
strategic input, industry expertise, capital support, and talent
resources to help guide Hayfin towards achieving significant growth
and scale over a seven-year period. Overall, BCI’s investment is
expected to generate a significant return on invested capital and a
successful outcome for its pension plan and insurance fund
clients.
Jim Pittman, Executive Vice President & Global Head of
Private Equity at BCI, said “BCI’s successful private equity
partnership with Hayfin’s management reflects our flexible,
creative, and collaborative approach to investing. Given our
long-term investment horizon, we were able to spot an emerging
trend early on in the cycle – in this case the growth of the
European private credit market – and help scale Hayfin into the
market leader it is today.”
Pittman added, “We are delighted to have reached this agreement
with Hayfin and Arctos, delivering an excellent outcome for BCI’s
pension plan and insurance clients. We’re extremely proud of the
partnership we forged with the Hayfin team over the past seven
years, which has delivered significant growth in a critical period
for the private credit market. We remain confident in Hayfin, its
management team, strategic vision and investment strategies and are
pleased to remain as a significant limited partner in certain key
funds.”
BCI’s private equity program has a long-established presence in
Europe through notable direct investments in multiple
industry-leading companies such as Hayfin, BMS Group, ZEDRA,
Refresco, Compre Group and Waterlogic, where it can bring its
capital and operational expertise to bear. With a growing portfolio
of companies and fund partners in Europe, BCI intends to continue
accelerating the footprint of its private equity program in this
critical region.
The transaction is subject to customary regulatory approvals and
is anticipated to close in Q4 2024.
Goldman Sachs International and Moelis & Company LLC served
as financial advisors to Hayfin and BCI. Weil Gotshal & Manges
LLP acted as legal counsel to BCI, Macfarlanes LLP and Cleary
Gottlieb Steen & Hamilton LLP acted as legal counsel to Hayfin,
Kirkland & Ellis LLP acted as legal counsel to Hayfin
management and Skadden, Arps, Slate, Meagher & Flom LLP acted
as legal counsel to Hayfin’s independent directors.
About BCI
British Columbia Investment Management Corporation (BCI) is
amongst the largest institutional investors in Canada, with C$250.4
billion in gross AUM as of March 31, 2024. Based in Victoria,
British Columbia, with offices in Vancouver, New York, and London,
U.K., BCI manages a portfolio of diversified public and private
market investments on behalf of its 29 British Columbia public
sector clients.
BCI’s private equity program actively manages a C$31 billion
global portfolio of privately held companies and funds with the
potential for long-term growth and value creation. Leveraging our
sector-focused teams in business services, consumer, financial
services, healthcare, industrials, and technology, media and
telecommunications, we work with strategic private equity partners
to source and manage direct and co-sponsor/co-investment
opportunities.
Contact:
Olga Petrycki
BCI - British Columbia Investment Management Corp
media@bci.ca
+1 778 410 7310