In our 2024 outlook, Hayfin argued that the European market offered one of the most attractive opportunity sets in private credit globally[1]. One year on, the evidence is even more compelling.
In the last six months, in particular, geopolitical risk and heightened trade tensions have accelerated a process that has been years in the making: institutional allocators looking beyond the US market to Europe, drawn by its unique market structure and comparatively untapped landscape. Once seen as a challenge, the continent’s fragmented financial ecosystem is now a source of competitive advantage for managers with local presence and scale.
Policy shocks and portfolio shifts
The reintroduction of extensive US tariffs on imports from trading partners around the world has reignited trade tensions and introduced fresh volatility into the global investment landscape – but particularly in the US and China. Even with these measures often having been quickly reversed or put on pause, they have raised inflationary concerns and complicated global supply chains, prompting allocators to reassess their geographic exposure.
A popular destination for that diversification is Europe, which, by contrast,offers a comparatively more stable political and regulatory backdrop. This divergence is already being reflected in capital flows. According to Preqin, Europe-focused private credit funds raised $25.7 billion in Q1 2025, nearly tripling the $9.3 billion raised by US-focused counterparts[2].
While North America still represents around 75% of private credit assets, this trend was the most common theme discussed at the 2025 SuperReturn Conference in Berlin. At the private capital industry’s top convention, asset managers and allocators cited a deliberate move toward non-US private markets, with Europe emerging as a priority region. This momentum for European private credit has been accelerated by a move from allocators to rebalance away from private equity, given current overweighting and the challenges faced in that asset class.
Crucially, however, investors aren’t simply avoiding short-term geopolitical risk; allocators are increasingly drawn to the structural advantages and return potential Europe offers.As US markets become increasingly saturated, Europe continues to present a differentiated opportunity set that rewards selectivity, local presence and underwriting discipline.
Structural strength and strategic opportunity
At the heart of Europe’s appeal is its structural distinctiveness. The continent is heavily segmented and continues to be a bank relationship-oriented market[3]. As regulatory pressures persist under Basel IV and banks continue to pull back from the mid-market, private credit is stepping into a widening gap.
But what sets Europe apart is the quality of its deal flow, not just its availability. European private credit transactions typically offer a 50–150 basis-point margin premium over comparable US loans, often with tighter documentation and lower leverage than their US counterparts[4]. Recovery rates are higher, and default rates remain lower, supported by tested creditor-friendly legal regimes in jurisdictions such as the UK, Luxembourg and the Netherlands.
Finally, Europe’s complexity, its patchwork of languages, legal systems and market norms also creates a natural barrier to entry. For new entrants, clearly, that’s a challenge. For managers with deep regional networks and on-the-ground infrastructure, this fragmentation becomes a protective moat. It enables proprietary deal flow, differentiated origination, more nuanced risk assessment and greater control over structuring and execution.
While the US market becomes increasingly commoditised, Europe rewards regional expertise and scale. This differentiation is increasingly valuable in a global market where capital is abundant but high-quality opportunities are scarce.
The move to Europe is underway
The case for European private credit is no longer theoretical; it’s playing out in real time. As US markets grapple with policy-driven volatility and competitive saturation, Europe offers a less crowded, structurally attractive alternative.
For investors seeking resilient returns, downside protection and differentiated deal flow, Europe offers some of the most compelling opportunities in the market today.
REFERENCES
[1] Hayfin, ‘Why Europe? Market Considerations for Private Credit’, 23 May 2024
[2] S&P Global, ‘Europe-focused private credit fundraising outpaces US efforts’, 03 April 2025
[3] S&P Global, ‘Credit FAQ: How Private Credit’s European Expansion Brings Rewards And Risks’, 09 May 2023
[4] Hayfin, ‘Why Europe? Market Considerations for Private Credit’, 23 May 2024
Hayfin is pleased to announce that it is acting as lead investor in the €240 million single-asset Continuation vehicle through its Private Equity Solutions strategy, to support Investcorp Technology Partners (ITP) in scaling and deepening HWG Sababa’s strategic market position.
Headquartered in Verona, Italy, 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.
Active in over 20 countries, HWG Sababa secures mission-critical systems of a diverse base of mid-sized enterprise clients across sectors including critical infrastructure, energy, finance, manufacturing, telecommunications, automotive and more. The company has experienced rapid expansion, fuelled by double-digit organic growth and strategic add-on acquisitions.
Vladimir Balchev, Managing Director of the Private Equity Solutions team at Hayfin, said: “Supporting HWG Sababa’s mission to safeguard some of Europe’s most critical industries is a compelling opportunity, and we’re pleased to collaborate with Investcorp. As cyber threats grow in scale and sophistication, HWG Sababa’s platform is uniquely placed to ensure customers remain secure and cement its role as a trusted partner for businesses operating in complex threat environments.”
Veronica Magnanini, Principal of the Private Equity Solutions team at Hayfin, added: “This transaction is testament to the strength of our investment proposition through our Private Equity Solutions strategy. In partnering with a high-calibre sponsor like ITP to continue supporting a category-leading business such as HWG Sababa, we expect that the business can capitalise on its significant potential in this next phase of growth.”
Hayfin is pleased to announce the appointment of Jason Late as Co-Portfolio Manager and Head of Research in its European High-Yield & Syndicated Loans (HYSL) strategy. Jason is based in Hayfin’s headquarters in London and joins the HYSL team led by Gina Germano, who has headed the strategy for over a decade.
Jason brings more than two decades of experience investing in credit markets. Prior to joining Hayfin, Jason spent over five years as Managing Director of Credit at Ares, followed by over two years as a Portfolio Manager at Man Group. Earlier in his career, he held the role of Director at Deutsche Bank for more than three years and various positions in High-Yield at Brookfield Investment Management after starting his finance career at Goldman Sachs in New York.
Mark Tognolini, Co-Founder and Co-Chief Executive Officer, said: “Jason’s hire underscores our commitment to investing in talent and expanding the capacity to deliver the ambition of the HYSL team. The combination of his expertise and leadership will play a crucial role in advancing the strategy, meeting client demand and ensuring that we remain at the forefront of delivering innovative solutions. We look forward to his contributions as the business grows.”
Gina Germano, Portfolio Manager and Head of the European HYSL team, said: “This is a research-led strategy, and Jason’s appointment reflects that ethos. His experience across credit markets and strong analytical judgment will significantly strengthen our capabilities as we seek to identify value and navigate volatility. I look forward to working closely with him as we continue to build and deliver for our investors.”
Jason Late, Co-Portfolio Manager and Head of Research, said: “It’s an exciting opportunity to join Gina and such a capable team as they continue to grow. I’m keen to help harness the skills and creativity of the firm to bring the best solutions possible to Hayfin’s clients.”
Hayfin has appointed Antonio Gomez-Tembleque as a Managing Director in its Private Credit team focused on real estate investments. He will be based in Hayfin’s Madrid office.
Antonio joins Hayfin from Apollo Global Management where he led investment and asset management initiatives across Europe, with responsibilities at Lapithus Management involving both performing and non-performing loans as well as direct real estate investments. He also served as Finance Director for Europe and Asia at Apollo Management International LLP and co-founded LSA Sports Inc. In addition to this, Antonio spent a decade at PwC in New York and Madrid, where he was a Director in the Capital Markets Group, advising on IPOs and finance raising for both public and private companies.
Carlos Colomer, Managing Director in the Private Credit team, said: “We are pleased to welcome Anto in the Private Credit team. He brings extensive experience in real estate and credit investing, having led complex transactions across a diverse range of assets. He joins Hayfin at an exciting time as we look to capitalise on a highly attractive opportunity set for flexible capital across the European real estate space. We look forward to meeting that by scaling the reach and ambition of our Private Credit strategy as we continue to expand our footprint.”
Hayfin has appointed Raj Paranandi as Chief Operating Officer (COO), based at the firm’s London headquarters.
Raj joins Hayfin from MarketAxess, an international financial technology company that operates the leading electronic trading platform for institutional credit markets, where he served as COO of EMEA and APAC. Prior to this, Raj spent 10 years in leadership positions at UBS and he comes with over 25 years of experience in Financial Services.
As COO, Raj will succeed Mark Tognolini, who will assume the role of co-Chief Executive Officer alongside Tim Flynn. This evolution in leadership reflects the collaborative management style that Mark and Tim have maintained since co-founding Hayfin and is designed to further strengthen the firm’s ability to serve its investors, borrowers, and partners.
Raj Paranandi, COO of Hayfin, said: “I am excited to be joining Hayfin as the firm continues to experience strong growth. With a deep origination network and unparalleled connections across the European market, the firm has established an enviable track record. I look forward to building on this as the business continues to scale, attracts talent and deepens its market footprint.”
Tim Flynn, co-CEO of Hayfin, said: “Mark and I are delighted to welcome Raj as COO of Hayfin. His deep experience and record will put the firm in great stead as we accelerate our expansion and capitalise on the growing credit opportunities for our investors.
This is an exciting period for the business. Our partnership with Arctos and established reputation for excellence enables us to navigate market volatility and geopolitical uncertainty while positioning the firm for continued success.”
Hayfin is pleased to announce that it has acquired a minority stake through its Private Equity Solutions (PES) strategy in Novétude Group, a new European healthcare education platform in partnership with Charterhouse Capital Partners. The Group will be built around Novétude Santé, which Charterhouse has owned and grown since 2020. Charterhouse will retain a majority stake in the new platform.
Underpinned by significant industry tailwinds, there is strong sentiment that the Novétude Group is well-positioned to benefit from the large and growing market of European students enrolled in health and welfare studies at private education institutions and an ageing population in Europe, which is expected to drive increased demand for healthcare professionals and services.
Gonzalo Erroz, Managing Director and Co-head of the Private Equity Solutions team at Hayfin, said: “Joining forces with Charterhouse is an exciting development as we continue to invest in exceptional opportunities in the European healthcare education sector. We are proud to contribute to Novétude’s mission of fostering excellence, accessibility and responsibility in professional training, ensuring healthcare specialists are supported throughout every stage of their careers.”
Severin de Mortemart, Managing Director of the Private Equity Solutions team at Hayfin, said: “We are delighted to partner with Charterhouse and to leverage our position as an investor to support Novétude Group through their next stage of development, with the aim of helping to build one of the leading healthcare education platforms in Europe.”
As an active investor in European mid-market companies via single-asset GP-led solutions, Hayfin’s PES strategy benefits from strong alignment of interest with sponsors and management teams that already own, operate and know the target businesses intimately.
Hayfin is pleased to announce that its $355 million bilateral acquisition facility for V.Group’s buyout by STAR Capital and Ackermans & van Haaren has been named as the ‘Private Credit Deal of the Year’ 2024 by Marine Money. Leveraging its expertise in corporate lending and maritime finance, Hayfin developed a sophisticated private credit solution based on its deep understanding of industry dynamics, the growing call upon third-party managers due to increased regulation and technical demands, and the inherent resilience in a business of V.Group’s scale.
The loan blends Hayfin’s maritime expertise with structured credit and is backed by operational sustainability and predictable revenue streams. It’s testament to the team’s unique in-house capabilities and industry experience that they have been able to translate a strategic partnership into a creative credit solution.
As global shipping evolves and faces new challenges, the sector will require flexible financing. Hayfin is uniquely placed to meet that demand and will continue to work with borrowers, investors and clients as they navigate the maritime market.
Hayfin is pleased to announce that Sumitomo Mitsui Trust Bank, Limited (“SuMi TRUST Bank”), a leading Tokyo-headquartered bank, has invested in Hayfin’s Maritime Yield strategy, bringing total strategy commitments to over $620 million across the commingled fund and related separately managed accounts.
The investment is the latest addition to the c.$400m in capital commitments raised for the fund in 2023 and has taken Hayfin’s total deployment capacity significantly past $1bn when coupled with conservative debt financing.
This latest fundraising round is a further extension of Hayfin’s track record in the maritime sector, having invested in excess of $4 billion across various sectors – dry bulk, tankers, containers, LPG, and LNG. The firm has deployed capital into the sector through its private credit strategies, as well as the Maritime Yield strategy, which focuses on building a diversified asset-owning platform, generating long-term, stable income.
SuMi TRUST Bank’s commitment will directly support the development of sustainable maritime transportation through the Hayfin Maritime Yield strategy. The investment underlines the gaining momentum for decarbonisation of the shipping industry, both within local markets and globally. It will strengthen networks between the maritime industry and financial markets while developing a collaborative relationship with Hayfin’s Japan team.
Andreas Povlsen, Head of Maritime, commented: “We’re delighted to have secured this important commitment from SuMi TRUST Bank, underlining our lasting commitment to the Japanese market through our Maritime Yield strategy – not just investors, but also shipbuilders, operators, leasing companies and trading houses. Our maritime platform offers exposure to high-quality assets that help underpin global trade flows and is working to drive forward the decarbonisation of the global shipping sector, which is a proposition that increasingly resonates with institutions in Japan and elsewhere around the globe.”
Hayfin’s latest report, Opportunities in Volatility, outlines our approach to navigating significant geopolitical and economic headwinds, including the impact of tariffs, trade tensions, and supply chain disruptions on global financing.
The report includes an in-depth analysis of the current private credit landscape and examples of how these dynamics have shaped our strategies for capital deployment.
Hayfin today announces the acquisition of a portfolio of performing European commercial real estate development and investment loans from funds managed by Oaktree Capital Management, L.P. (“Oaktree”). The portfolio was originated and managed by Fairfield Real Estate Finance Services Limited (“Fairfield”), a commercial real estate lending platform backed by Oaktree.
The loan portfolio is secured against a pool of hotel, residential and office assets located in gateway cities across Ireland, Spain and Portugal. These loans were extended to financial sponsors, developers and owner-operators, and have helped to finance the construction, conversion or refurbishment of these schemes.
Following the acquisition, Fairfield has been retained to continue to manage the loan portfolio on Hayfin’s behalf, providing important continuity for the borrowers in the portfolio.
Carlos Colomer, Managing Director at Hayfin, said: “We’re delighted to acquire this portfolio of performing CRE development loans, which aligns with our strategy of investing in high-quality credit assets across Europe. Secured against a diversified pool of real estate, this transaction highlights how our flexible capital and sector expertise enable us to secure attractive opportunities for our investors. We look forward to working with the Fairfield team on this transaction and continuing our partnership by originating new CRE development financing opportunities.”
Hayfin was advised on the transaction by Macfarlanes. Oaktree was advised on the transaction by PwC and White & Case.
Disclosure
Past performance is not a guarantee of future performance. No investment, strategy or tested process can guarantee results. Please note, fees reduce returns to investors.