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US financier Todd Boehly’s funding home is in superior talks to purchase European non-public credit score agency Hayfin Capital Administration, in response to folks accustomed to the matter.
A deal would give Boehly’s Eldridge Industries a foothold within the fast-growing marketplace for lending to personal European firms, constructing on its investments spanning insurance coverage, asset administration, expertise, media and actual property.
Hayfin has greater than €30bn in property underneath administration, throughout direct lending, particular alternatives and high-yield credit score.
The proposed deal values Hayfin at greater than €1bn, one of many folks briefed on the state of affairs mentioned.
Boehly, Eldridge’s co-founder and chief govt, led a bunch in 2022 that purchased Chelsea Soccer Membership in a high-profile £4.25bn deal.
He additionally co-owns the Los Angeles Dodgers baseball group and the LA Lakers basketball group.
Connecticut-headquartered Eldridge didn’t instantly reply to a request for remark. Hayfin, which has its headquarters in London, declined to remark.
The non-public credit score market has taken off lately after some banks shied away from lending within the wake of the worldwide monetary disaster.
The IMF estimates the dimensions of the worldwide non-public credit score business at greater than $2tn, most of which is within the US, rivalling the high-yield and leveraged-loan markets.
The retreat of some banks from the lending market has prompted companies which started life as buyout companies, together with Blackstone and KKR, to develop massive non-public credit score arms.
In the meantime, asset managers corresponding to Franklin Templeton have additionally acquired non-public credit score companies in an effort to revenue from rising investor demand for the exercise.
Hayfin was based in 2009 by two former Goldman Sachs bankers, with backing from non-public fairness agency TowerBrook Capital Companions.
In 2017, traders together with TowerBrook bought Hayfin to British Columbia Funding Administration Company, a Canadian pension plan.
Since then, Hayfin has grown its property underneath administration practically fourfold to greater than €30bn, and it now employs greater than 200 folks throughout Europe, the US and Asia.
Final yr, the agency raised greater than €6bn for its largest fund, which lends cash to personal firms.