Arctos Partners, known for its investments in high-profile sports teams including Paris Saint-Germain and the Boston Red Sox, is in advanced discussions to acquire a majority stake in private credit firm Hayfin Capital Management.
The acquisition, which values Hayfin at $1.3bn, will see Arctos and Hayfin’s co-founders Tim Flynn and Mark Tognolini acquiring a majority of the common stock currently held by the British Columbia Investment Management Corporation. Hayfin manages over €30bn in assets.
The buyout attracted interest from the likes of MetLife and Todd Boehly’s Eldridge Industries.
Hayfin’s management had previously considered selling the entire business but ultimately decided to explore a self-funded buyout as BCI sought to exit. Since BCI’s investment in 2017, Hayfin’s assets have quadrupled, with its latest flagship European private credit fund raising over €6bn, placing it among the top 20 largest direct lending funds ever, according to Preqin.
Beyond its core private credit lending, Hayfin has diversified into liquid credit investments and recently financed Eurazeo’s acquisition of French retirement plan operator Eres. Hayfin was founded in 2009 by Tim Flynn and Mark Tognolini, both former Goldman Sachs leveraged buyout specialists.
