Intro

As we move through the second half of 2025, we wanted to share an update on the continued progress of the Hayfin PES strategy.

The team has had a strong start to the year, closing two new investments for PES III and achieving a significant realisation from the PES I GP-led portfolio — a milestone expected to materially uplift DPI. These developments reflect the strength of our investment approach and the sustained momentum behind our GP-led strategy. We’re also seeing increasing investor engagement as we work towards a first close for PES III after the summer.

In this update, you’ll find further detail on our market update, latest investments, key performance highlights, and our current fundraising progress.

 

Mirja Lehmler-Brown
Managing Director
London
Gonzalo Erroz
Managing Director
London

Market Update

GP-leds are a key topic for both LPs and GPs, as the market remains active and continues to evolve. In H1 2025, Hayfin reviewed a large number of opportunities and observed a steady stream of closed transactions, despite macro headwinds. LP allocations to the strategy are also increasing, as reflected in several record-setting fundraises. In parallel, a number of GPs have launched new funds this year with built-in LPA provisions for continuation vehicles — a strong signal that the market is set to keep expanding. Against this backdrop of activity and growth, the Hayfin PES team is energised and looking forward to what the second half of the year will bring.

Investment Highlights

We are pleased to announce that the Hayfin PES team has closed two new investments and is set to realise an exit that will generate significant liquidity — with net DPI for the PES I GP-led portfolio (2019) expected to increase from 0.85x to approximately 1.3x by year-end.1

These investments represent the first two positions in PES III (out of a targeted 12–15) and clearly demonstrate the team’s ability to originate and shape GP-led solutions for high-quality, standout assets.

PES focuses on leading small and mid-cap businesses in healthcare, technology, and business services — sectors that combine strong growth potential with high margins. With a c.24% five-year CAGR and c.26% EBITDA margin across our existing GP-led portfolio, these latest investments — one in healthcare and one in technology — are firmly in line with our strategy and exemplify our investment sweet spot.2

First investment: Novétude Group (€70m including co-investors)

Novétude Group

We recently completed a minority investment in Novétude Group, a European healthcare education platform, in partnership with Charterhouse Capital Partners.

With strong industry tailwinds and a growing demand from students pursuing health and welfare studies at private institutions across Europe, Novétude is well-positioned for continued growth.

This was a highly shaped transaction for PES — we played a central role in bringing together two complementary businesses and provided independent pricing that was critical to the deal. Our involvement also allowed us to enter the transaction on a no fee / no carry basis.

Second Investment: HWG Sababa (€80m including co-investors)

PES is acting as lead investor in a continuation vehicle raised by Investcorp Technology Partners to support its next ownership phase of HWG Sababa.

HWG Sababa is a fast-growing cybersecurity platform offering end-to-end protection – from strategic advisory and 24/7 Security Operations Centre monitoring to incident response, pentesting – for Information Technology, Operational Technology and Internet of Things environments.

Following a review of multiple assets in the cybersecurity space, PES identified HWG Sababa as a star asset in need of additional capital for the next growth phase.

PES I Highlights

PES I GP-led net DPI estimated to materially outperform benchmark

We’re pleased to share that PHM Group Oy, a company within the PES I GP-led portfolio, has been successfully sold. The realisation is expected to generate a 7.4x gross TVPI (6.6x net TVPI)3 for the portfolio once proceeds are distributed by year-end.

The distribution is projected to increase the PES I GP-led portfolio’s (2019) net DPI to approximately 1.3x, positioning the fund to materially outperform the Cambridge Associates European Private Equity benchmark.4

This successful outcome keeps PES I GP-led firmly on track to deliver its target net return of 2.5x.5

PES Fundraising Update

End of summer first close with early closer economics

PES III has launched with strong momentum, securing a €100m seed commitment alongside a €150m warehouse facility from the seed investor. The facility is designed to support the pacing of early investments and facilitate syndication to co-investors as the fundraise progresses.

A select group of potential investors is currently in due diligence, with a first close targeted for after the summer. Early participants will benefit from preferential economics and priority access to co-investment opportunities.

Looking Ahead

The PES strategy continues to benefit from strong deal flow, disciplined execution, and growing investor interest. With a compelling pipeline of opportunities and continued progress across our existing portfolios, we remain confident in our ability to deliver attractive risk-adjusted returns and differentiated access to the GP-led market.

We look forward to updating you on further developments and thank you for your continued support and engagement.

[1] Based on Hayfin’s estimate of the expected exit price. The assumptions and estimates underlying the calculations of any expected return metric are inherently subjective and different parties could reach materially different conclusions based on the same information. Accordingly, the actual returns received by investors may differ materially from the calculations herein.

[2] EBITDA margin is FY24A and revenue CAGR is 2019-2024 for majority of positions, but shorter / different timeframes have been used subject to data availability for certain investments.

[3] Net of both underlying GP fees, carried interest and expenses as well as Hayfin fees, carried interest and expenses. Past performance is no guarantee of future results. No strategy, formula or approach can guarantee gains or avoid losses. There can be no guarantee that investment strategies will perform as expected, even with the application of tested, high-quality processes.

[4] See footnote 5.

[5] Exit projections based on Hayfin’s latest assumptions regarding exit timing and exit price for individual investments within the PES I GP-led Portfolio, which is projected to be fully realized by 2027.

 

Disclaimer

Notes to Investment Performance

Investment performance information is intended solely to provide investors with information about the transactions and performance of investments made by Hayfin and the funds and separate accounts that it manages (SMAs), including HFPES Fund I and HFPES Fund II (as each are defined below).

The performance information includes information about prior investment performance, including net and gross compounded annual internal rates of return (IRR).  Information about prior performance, while a useful tool in evaluating Hayfin’s investment activity, is not indicative of future results and there can be no assurance that the funds or the SMAs will generate results comparable to those previously achieved.

Case Studies: The case studies contained herein are meant for illustrative purposes only. Such case studies are meant to exemplify Hayfin’s analysis and the execution of its investment strategy. The case studies constitute representative examples of investments made by Hayfin in its private equity strategy during the time periods shown. There is no assurance that similar investment opportunities will exist or that similar results will be achieved. It should not be assumed that such investments were or will be profitable.

Benchmarks: Benchmarks and financial indices and databases are shown for illustrative purposes only. They provide general market data that serves as point of reference to compare the performance of Fund I and Fund II with that of well-known and widely recognised benchmarks and indices, databases. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark for measuring the performance of a portfolio. Such benchmark and indices are not available for direct investment and their performance does not reflect the expenses associated with the management of an actual portfolio, the actual cost of investing in the investments that comprise it or other fees. No representation is made that any benchmark or index is an appropriate measure for comparison. Please note that any published rankings or similar groupings have inherent limitations and qualifications, such as limited sample size, imperfect access to information and other considerations. There can be no assurance that the Cambridge benchmark (Europe Developed Private Equity / 2019 Vintage) includes all actual investment funds of the same vintage as the Hayfin’s funds with similar investment objectives and geographical focuses. Methodologies employed for calculating returns for the Hayfin funds may differ from the methodologies employed in the Cambridge Associates survey. Comparisons to other benchmarks may yield different results. Prospective investors should accordingly discount the relevance of this information. Additional information is available upon request.

Set out below is a summary of some of the key procedures, definitions, assumptions and methodologies used to calculate the investment performance. Prospective investors are encouraged to contact Hayfin to discuss these in more detail.

The Hayfin Private Equity Solutions team partners with sponsors in a structure-agnostic way in order to acquire equity exposure to European mid-market companies.

HFPES Fund I or Fund I consists of two separate vehicles launched in 2018: (i) Hayfin Private Equity Funds LP (“Hayfin Private Equity Funds”) consisting mainly of primary investments into third-party funds and (ii) Hayfin Sapphire III LP (“Sapphire”) consisting exclusively of direct investments. Both vehicles are managed as a single programme for its investors.

HFPES Fund II or Fund II refers to Hayfin Private Equity Solutions II LP.

Fund fees and expenses reduce returns to investors.

Key Definitions:

    • Realised proceeds or distributed means all cash received from respective investments.

    • Gross TVPI is the Total Value of an investment or fund divided by the Cost, Invested Capital or Contributed incurred to purchase such investment or contributed to such fund. Gross TVPI does take underlying GP’s fees, expenses and carried interest, but is calculated before Hayfin’s fees, expenses and carried interest. This does not reflect returns achieved by any investor. Investor returns will vary significantly, see Net TVPI for returns that are net of the underlying GP’s fees and expenses and net of the relevant Hayfin fund’s fees and expenses.

    • Net TVPI is the Gross TVPI applicable to all investors in the relevant fund net of management fees, organisational expenses, transaction costs, certain other fund expenses (including interest incurred by the relevant fund itself) and carried interest incurred by or attributable to Hayfin, and measures returns based on amounts that, if distributed, would be paid to investors of the relevant fund, to the extent that it exceeds all requirements detailed within the applicable fund agreement.

    • Net DPI is Realised Proceeds or Distributed divided by Cost, Invested Capital or Contributed as of 31 December 2024 (unless a different date is specified), net of management fees, organisational expenses, transaction costs, certain other fund expenses (including interest incurred by the relevant fund itself) and carried interest incurred by or attributable to Hayfin.

    • Expected Net DPI is the expected Realised Proceeds or Distributed divided by Cost, Invested Capital or Contributed considering all cash flows received on or prior to 31 December 2024 (unless a different date is specified) and based on Hayfin’s estimate of the expected exit price. It is applicable to all investors in the relevant fund net of management fees, organisational expenses, transaction costs, certain other fund expenses (including interest incurred by the relevant fund itself) and carried interest incurred by or attributable to Hayfin.

    • The assumptions and estimates underlying the calculations of any expected return metric are inherently subjective and different parties could reach materially different conclusions based on the same information. Accordingly, the actual returns received by investors may differ materially from the calculations herein.

    • Firmwide incorporates all separately managed accounts, the Hayfin balance sheet and co-mingled fund vehicles, as well as all investment strategies unless specified.

Extracted Performance: Net performance for individual investments or subset of investments has been included in this Presentation to comply with Rule 206(4)-1(d)(1) of the Investment Advisers Act of 1940, as amended (the “Net Performance Rule”). Please note that presentation of net performance information for an individual or a subset of the applicable fund’s portfolio investments is a hypothetical estimate. Net IRR and Net TVPI at an individual investment level are generally determined by first calculating the ratio of the fund-level Net IRR (and Net TVPI) to the fund-level gross IRR (and gross TVPI) for the applicable fund, and then by multiplying the investment-level gross IRR (and gross TVPI) for each investment by this ratio, as applicable. In the context of this definition, “gross” means after underlying GP fees, expenses and carried interest, but before Hayfin fees, expenses and carried interest.

The computation of net performance for individual investments or a subset of investments involves complex and potentially subjective assumptions regarding the allocation of fund-level management fees, carried interest, and other applicable expenses, between and among the relevant individual investment or subset or investments.  Any changes to such assumption would have an effect on the net performance metric of each individual investment or subset of investments, which could be material.

Net performance of individual or a subset of investments is provided for illustrative purposes only and do not represent results actually achieved by any fund managed by Hayfin.  As such, all such net performance information with respect to individual investments set forth in this Presentation to comply with the Net Performance Rule has been provided to you on a non-reliance basis and for your reference and information only.  Such performance information is qualified in its entirety by, and is subject to, the other performance disclosures set forth in this presentation.

Hayfin makes no representation or warranty that the Net Performance Rule computation methodology accurately reflects the management fees, carried interest, and applicable expenses actually allocable to any such investment or subset of investments or that its assumptions are comprehensive in nature.