BCI Sells Majority Stake in Hayfin Capital to Arctos Partners
BCI Sells Majority Stake in Hayfin Capital Management
British Columbia Investment Management Corporation (BCI), recognized as one of Canada’s leading institutional investors, has successfully completed the sale of its majority interest in Hayfin Capital Management. This strategic move means BCI is now in partnership with Arctos Partners, a private investment firm eager to drive Hayfin's next growth phase. Even after this transaction, BCI maintains a strong presence as a limited partner in specific Hayfin fund strategies, ensuring continued collaboration.
Growth Through Strategic Investment
Reflecting on past decisions, Jim Pittman, BCI's Executive Vice President & Global Head of Private Equity, shared insights about the journey of investing in Hayfin. Seven years ago, BCI identified a transformative trend within private credit that encouraged its investment. According to Pittman, backing Hayfin not only strengthened its platform capabilities but also positioned it as a leader in alternative asset management within Europe. The growth is evident, as Hayfin's assets under management soared from €8 billion at the time BCI first invested to an impressive €33 billion today.
Continued Support in Private Credit
Daniel Garant, BCI’s Executive Vice President & Global Head of Public Markets, echoed these sentiments by emphasizing the company’s dedication to supporting Hayfin’s direct lending and tactical credit strategies. This partnership has allowed both entities to scale these pivotal programs effectively. BCI sees Hayfin as a crucial asset and strategic ally in the European private credit scene.
Strategic Growth and Market Opportunities
In 2017, BCI acquired its majority stake in Hayfin, foreseeing a prolonged growth opportunity within the private credit market. The need for alternative investment strategies was burgeoning due to regulatory changes and structural demands in the European market. Over the years, BCI collaborated closely with the Hayfin management team to develop their investment teams, improve operational capacity, and establish a strong foundation for asset management that delivers outstanding risk-adjusted returns.
Restructuring and Evolution in Private Equity
The private credit realm has undergone dramatic transformations, evolving significantly over the last seven years. With ongoing consolidation trends within the industry, the timing of BCI's decision to sell its majority stake to Arctos Partners was strategic, enabling BCI to realize important investment returns for its clients.
Completion of the Transaction
After announcing the definitive agreement on July 30, 2024, BCI has now finalized the transaction with Arctos Partners. The full regulatory approvals have been acquired, and the transition was concluded as of early February 2025. This move not only enhances Hayfin's operational capabilities but also positions it well for future ventures.
BCI's Ongoing Commitment to Europe
BCI Private Equity has solidified its foothold in Europe by investing strategically in industry-leading firms, such as BMS Group, ZEDRA, Refresco, Compre Group, and Waterlogic. With a diversified portfolio and enduring partnerships, BCI is set to expand its influential private equity program across this vital region. This experience, particularly with Hayfin and similar entities, places BCI in a strong position for tapping into emerging investment opportunities.
About British Columbia Investment Management Corporation
As one of Canada's largest institutional investors, British Columbia Investment Management Corporation (BCI) manages an impressive portfolio valued at C$250.4 billion as of March 31, 2024. Headquartered in Victoria, with operational offices spanning Vancouver, New York, and London, BCI’s diverse investments in both public and private markets cater to its British Columbia pension fund and a range of institutional clients.
BCI’s Private Equity Strategy
BCI’s private equity strategy encompasses a robust global portfolio of privately held companies and funds worth C$31 billion, focused on nurturing long-term growth and delivering substantial value. BCI leverages its specialized teams across sectors including technology, healthcare, industrials, and more, collaborating with adept private equity partners to pursue promising direct investment avenues.
Frequently Asked Questions
What was the significance of BCI's recent transaction?
BCI's sale of its majority stake in Hayfin allows for strategic growth and realization of investment returns while continuing as a limited partner.
Who acquired the majority stake in Hayfin from BCI?
The majority stake in Hayfin was acquired by Arctos Partners, a private investment firm.
How has Hayfin performed since BCI's initial investment?
Hayfin's assets under management increased dramatically, from €8 billion to over €33 billion, highlighting its growth trajectory.
What role did BCI play in Hayfin’s development?
BCI contributed to growing Hayfin's capabilities by enhancing operational functions and supporting its evolving investment strategies.
What is BCI's focus in Europe going forward?
BCI aims to expand its private equity presence in Europe while exploring new investment opportunities in the region.
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