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Hayfin Is Pursuing a Management Buyout Instead of a Sale

(Bloomberg) -- Hayfin Capital Management, the private-credit specialist that began exploring a sale last year, has put those plans on ice in favor of a management buyout, a person with knowledge of the matter said.

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The firm’s management team is talking with potential financing providers as they seek to repurchase a majority stake from British Columbia Investment Management Corp., said the person, who asked not to be identified discussing confidential information. A management buyout, should it go forward, is set to value the firm at around €1.2 billion ($1.3 billion).

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Hayfin declined to comment, and BCI representatives didn’t immediately respond to a request for comment.

The firm has held talks with MetLife Inc. and Todd Boehly’s Eldridge Industries, Bloomberg News has reported.

Founded in 2009 by former Goldman Sachs Group Inc. executives Tim Flynn and Mark Tognolini, Hayfin invests in credit markets including high yield, special opportunities and direct lending. Its flagship direct lending fund closed last year with more than €6 billion, and the firm now has roughly €30 billion under management, making it one of the largest closely held European private-credit firms.

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