Hayfin and Arctos agree terms of buyout
Hayfin Capital Management has agreed the terms of a management buyout with private investment firm Arctos Partners.
The agreement will see Arctos acquire the majority stake owned by British Columbia Investment Management Corporation (BCI) for an undisclosed figure. Under the terms of the deal, Arctos will facilitate the Hayfin team becoming the majority owners of the common equity.
“This is an exciting new chapter that will support Hayfin’s ongoing growth while preserving our core identity and operational autonomy,” said Tim Flynn, co-founder and chief executive at Hayfin.
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“Arctos has a best-in-class, like-minded team that recognizes the enormous opportunity available to investors in the credit markets today, and their experience only enhances our ability to serve our investors, borrowers, and sponsors.
“Our long-standing team is grateful to BCI for the last seven years of successful collaboration, and we look forward to a continued relationship with them as an investor in our products.”
BCI will remain a strategic limited partner in certain Hayfin funds post-closing.
No changes are expected in Hayfin’s strategy, investment process, leadership, or day-to-day operations.
Hayfin was founded in 2009 and specializes in providing European and North American credit and private equity investment solutions to a global investor base.
In January 2017, BCI acquired a majority stake in the firm. Since then, Hayfin’s assets under management have grown to approximately €31bn (£26.12bn).
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“We are delighted to have reached this agreement with Hayfin and Arctos, delivering an excellent outcome for BCI’s pension plan and insurance clients,” said Jim Pittman, executive vice president and global head of private equity at BCI.
“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’s investment strategies and are pleased to remain as a limited partner in certain funds.”
Ian Charles, co-founder and managing partner at Arctos, praised Hayfin’s “excellent leadership team” and proven track record.
“Their strategic growth ambitions make them an ideal partner for Arctos Keystone and provides our investors access to Europe’s leading private credit platform as that market continues to see rapid growth,” Charles added.
“We look forward to supporting Hayfin’s long-tenured investment team in delivering our shared objective of generating attractive risk-adjusted returns for our respective investors.”
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