Mubadala and Axa IM Prime Buy Stakes in Hayfin

The UAE’s sovereign investor Mubadala Investment, and AXA IM Prime, the private markets arm of AXA Investment Managers, will acquire minority stakes in the UK-based private credit manager Hayfin Capital Management.

As part of the agreement, these firms will acquire these stakes from Arctos Partners in Hayfin and leverage their capabilities and expertise to support Hayfin’s investment strategies.

The transaction builds on the partnership between Hayfin and private investment firm Arctos. In February, Hayfin completed a management buyout (MBO) supported by Arctos via its Keystone strategy, which provides strategic partnerships to leading financial sponsors, through bespoke growth capital and liquidity solutions. The transaction facilitated the Hayfin team becoming majority owners of the firm’s common equity.

To enhance the MBO, Hayfin and Arctos jointly sought to distribute a portion of the firm’s institutional ownership to additional strategic minority shareholders. Mubadala and AXA IM Prime, alongside Arctos, will support the continued growth of Hayfin to further deliver on the firm’s long-term objectives of greater team ownership, alignment and incentivisation.

Hayfin will remain focused on generating superior and consistent risk-adjusted returns for its clients. As with the Arctos-backed buyout, the transaction will lead to no changes in Hayfin’s strategy, investment process, leadership or day-to-day operations. Completion remains subject to customary regulatory approvals.

Landmark Step

Hayfin’s Co-Founder and Co-CEO s Tim Flynn said that this was another landmark step, building on their partnership with Arctos, in an exciting new chapter for Hayfin.

“We have built these two best-in-class long-term partners in Mubadala and AXA IM Prime, each of whom represent strong endorsements of the platform, in Hayfin. Mubadala and AXA IM Prime bring unique perspectives and resources from around the globe that will support Hayfin’s ongoing growth and delivery of value for our clients, investors, borrowers and sponsors,” Flynn said.

Deputy CEO of the Credit and Special Situations platform at Mubadala Oman Eraiqaat said that they were excited to partner with Hayfin as they embark on this new chapter of growth.

He added: “Their track record, investment discipline, and shared values with Mubadala make them an ideal fit for our long-term capital. This partnership reflects our conviction in Hayfin’s platform and leadership team and reinforces our strategy of backing high-quality asset managers that deliver value to all their stakeholders.”

Gilles Dusaintpère, Head of AXA IM Prime GP Stake investments at AXA IM, said that their partnership with Hayfin will enhance the existing relationship.

“We fully endorse Hayfin’s development and long-term objectives of greater team ownership, alignment and incentivisation. Our investment strategy is designed to partner and align with best-in-class private markets players, and we look forward to supporting Hayfin and its team alongside Mubadala and Arctos,” he added.

It may be recalled that Mubadala’s private credit portfolio, which has been its best-performing asset class for the last three consecutive years, grew to $20 billion in 2024. This included a $1 billion partnership with Fortress Investment Group and a separate one of a similar size with Goldman Sachs, a multi-bn partnership with Apollo, and a $2.5 billion private credit joint Venture with Alpha Dhabi.