(Bloomberg) -- An arm of Arctos Partners is in talks to help finance a management buyout of Hayfin Capital Management that values the firm at about €1.2 billion ($1.3 billion), according to people familiar with the matter.
Arctos Keystone would facilitate the deal by helping the private-credit firm’s management acquire a majority of its common equity by buying out the controlling stake held by British Columbia Investment Management Corp., said the people, who asked to not be identified because the details aren’t public.
Representatives for Hayfin and BCI declined to comment. A representative for Arctos didn’t immediately respond to a request for comment.
Hayfin began discussing a management buyout with potential financing providers after abandoning efforts to sell itself, Bloomberg News reported in June. The firm had held talks with MetLife Inc. and Todd Boehly’s Eldridge Industries.
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 had about €31 billion under management as of June 30, making it one of the largest closely held European private-credit firms.
Arctos Keystone was launched in 2023, describing itself at the time as a unit that provides growth capital, financing and liquidity solutions to alternative asset managers, their portfolio companies and funds.
The Financial Times reported earlier that Arctos Partners was in advanced talks to acquire a majority stake in Hayfin.
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