2026 is shaping up to be an important year for portfolio financing markets. A mix of macro uncertainty, evolving CLO technicals, and more selective lender behaviour is influencing pricing and terms in ways that Managers will need to navigate carefully.
For Managers running asset-backed lending (ABL) facilities and subscription lines, being well prepared and well positioned can make a meaningful difference in achieving attractive economics. What follows is our current read of the market—where the opportunities sit, where the risks are building, and how we are positioning to stay ahead of both.
Market Context: CLO and ABL Technicals
European CLO markets entered 2026 from a position of meaningful technical strength. A record number of open warehouses, a deep pipeline of reset candidates from 2024 vintages exiting non-call periods, and an increasingly diversified investor base all underpinned a constructive backdrop heading into the year. New issuance expectations for 2026 range from €50bn to €65bn across major bank research desks, and the European market has now grown to over €300bn in outstanding volume, roughly one third the size of its US counterpart.
The spread trajectory tells its own story. Average primary AAA coupons on European CLOs peaked at around 191 bps in Q2 2023, tightened to 150 bps by Q1 2024, and compressed further to approximately 132 bps on average through 2025—reaching lows of 119 bps in early February 2026 before geopolitical events intervened (Source: Pitchbook, March 2026). The reset wave was a direct consequence: over €49bn in reset deals were printed in Europe in 2025 alone, versus €30bn in all of 2024, as managers raced to lock in lower liability costs before the window closed.
That window has now narrowed. Following the onset of the Iran conflict and associated risk-off sentiment, AAA primary spreads have widened by around 5–10 bps from their February tights, while BB spreads have moved on average 100–150 bps wider across both European and US markets (Source: Pitchbook, March 2026).
That foundation matters for ABL markets, given ABL pricing does not operate in isolation—it has tracked movements in AAA CLO spreads consistently since late 2022. The tightening cycle compressed the ABL illiquidity premium materially and signalled strong lender appetite throughout 2023–2025. The recent reversal, though modest at the AAA level, has been enough to introduce friction into ABL negotiations. Managers planning upsizes in the near term should expect a more careful conversation with lenders than they would have had three months ago.
Financing Environment: ABL Market Dynamics
The ABL market is where the more complex dynamics are playing out. Sentiment here is increasingly tethered to broader CLO market conditions, and the noise has been amplified by negative headlines across software valuations, ABS structures, BDC performance, and leveraged loan and private credit markets more broadly.
The practical effect has been a sharpening of lender scrutiny. Underwriters are asking harder questions about valuation practices and the performance of underlying assets. Peer repricings are becoming more common. Most financing counterparties remain active and engaged—but conservative or less experienced lenders are tightening covenants or simply pulling back, and the bifurcation in lender quality is becoming more pronounced. Managers who built facilities with inadequate covenants or with weaker counterparties during the tighter-spread environment of 2023–2024 may find those relationships less reliable precisely when they need them most.
For those newer to this corner of the market, it is worth grounding the discussion in the mechanics. ABL financing operates at the SPV level, with facilities secured against a defined pool of assets. Lenders monitor collateral performance closely—tracking covenant headroom, leverage ratios, and, increasingly, the quality and consistency of valuation methodology.
The comparison to CLO structures is instructive. Both use asset-level security and structural protections to give lenders confidence in their risk exposure. The key difference is liquidity: CLOs benefit from a more liquid secondary market, which means the illiquidity premium embedded in ABL pricing has historically reflected that gap. As CLO spreads have tightened, so has that premium—but it has not disappeared, and in periods of stress it can reprice quickly.
The two risks managers need to manage actively are asset underperformance risk—where collateral value declines push LTV ratios toward covenant triggers—and liquidity risk, where stressed lending conditions reduce the availability of financing at precisely the moment it is most needed. Neither risk is theoretical at present.
Optionality Under Stress: Hayfin’s Approach to Today’s Market
We have deliberately invested in building in‑house portfolio financing capabilities—dedicated specialists with long-standing lender relationships. This allows us to operate proactively rather than reactively, identifying which facilities should be secured, refinanced, or renegotiated well ahead of market inflection points. Our team’s technical expertise and continuous market engagement mean our clients benefit from preparedness, not pressure.
A recent example illustrates the value of this approach. One of our banking counterparties proposed mid‑facility adjustments to our valuation framework while preserving the agreed economics. Our ability to engage constructively, grasp the technical nuances, and arrive at a practical solution demonstrated the depth of the team, the strength of our lender relationships and our ability to navigate these discussions effectively to achieve strong outcomes for our clients.
A further pillar of our approach is intentional counterparty diversification. Concentrating ABL facilities with a small number of lenders—however strong those relationships may feel in benign conditions—creates an asymmetric vulnerability: when market sentiment shifts, those who rely heavily on one or two banks find their financing options constrained at exactly the wrong moment.
We have structured our lender base deliberately to avoid that exposure, spreading facilities across a mix of Tier 1 banks, regional lenders, and non‑bank counterparties with differentiated risk appetites and funding bases. The result is a portfolio of financing relationships that does not move in lockstep with any single institution’s internal risk appetite or balance sheet constraints. As parts of the lender market become more cautious, particularly among newer entrants, our diversified network ensures we retain a range of established alternatives and can continue to operate with confidence.
We also run competitive RFP processes systematically when securing or refinancing facilities. In a market where lender appetite is differentiated and pricing is moving, there is no substitute for a proper process to extract best economics. Platform scale matters here—our size and the breadth of our lender relationships ensure we see pricing and structure across a wide cross‑section of the market, not just what any single bank wants to put in front of us.
Perhaps most importantly, deep market participation gives us real‑time intelligence on what peers are experiencing. Knowing that repricings are clearing—and understanding which lenders are driving that activity versus which are retrenching—allows us to calibrate our own negotiations with considerably more precision than relying on market rumour.
The portfolio financing market in 2026 is functioning, but it is far less forgiving. CLO technicals remain broadly supportive, lender appetite is intact, and transactions continue to get done. However, the era of wide lender pools and easily achieved economics has passed for now. Managers who will be best positioned are those who have cultivated strong counterparty relationships, maintained disciplined valuation practices, and built the in‑house expertise and market access to negotiate from a position of genuine insight.
Agility, lender diversification, and data‑driven negotiation have become essential elements of navigating today’s market. At Hayfin, we see preparation as the most effective way to manage financing volatility—staying close to market developments, engaging early with counterparties, and ensuring we approach each discussion with a clear sense of the available options and the right economic outcomes for our clients.
Each year, International Women’s Day offers a moment for corporates, governments and individuals globally to take stock. It provides the opportunity to celebrate progress but also reflect on challenges that still lie ahead.
The pace of change remains gradual. In the UK, women who work full-time still earn on average 6.9% less than men working the same number of hours, although the gap has narrowed by over a quarter over the past decade. In the United States, according to the Pew Research Center, women earn roughly 85 cents for every dollar earned by men, compared with 81 cents in 2003. These trends highlight that while we are moving in the right direction, meaningful progress requires sustained effort.
This year’s theme, Give to Gain, captured that dynamic clearly: meaningful progress comes when organisations actively invest in inclusion, opportunity and leadership development. When businesses create conditions for women to thrive, the benefits extend far beyond individuals; it shapes culture and supports long-term growth.
Against this backdrop, Hayfin’s Global Women’s Initiative hosted its third annual International Women’s Day event, From Retention to Leadership: An International Women’s Day Conversation. Bringing together senior leaders from across the industry, the panel discussion and Q&A explored how organisations can move beyond recognition towards action, such as removing bias in decision-making to expanding opportunities and building stronger leadership pipelines for women.
I was delighted to moderate this discussion, and would like to extend a huge thank you to our panellists: Sharon Bell, Senior Strategist in Goldman Sachs Research; Sabrina Fox, Founder, Fox Legal Training & Good Girl to Goddess; and Maria Johannessen, Head of UK Investment, Aon. Here are some of the key takeaways from the conversation:
Progress demands energy
Driving societal change does not happen overnight, and while systemic issues such as pay gaps are still evident, there has been progress. Representation is gradually improving: women now hold roughly 40% of board roles in FTSE 350 companies, up from 9.5% in 2011, reflecting sustained efforts to strengthen diversity in leadership.
The growing presence of women in senior roles sends an important signal to the next generation that leadership pathways are widening. However, accelerating progress will require continued energy and commitment from businesses and policymakers alike. For corporates, this means moving beyond intent to action – not just actively celebrating initiatives such as International Women’s Day, but also championing female leaders and implementing policies that develop and retain the next generation of talent.
Government also has an important role to play. While legislation such as the Equal Pay Act established an essential foundation, further progress will depend on policies that better support career continuity, including more balanced approaches to parental leave and greater recognition of the realities of time spent out of the workforce.
Sponsorship matters
Another theme that emerged from the discussion was the importance of sponsorship. Having someone advocate for you in meaningful ways when you are not in the room can be transformative. Unlike mentorship, which typically focuses on guidance and advice, sponsorship involves advocacy. A sponsor not only helps individuals clarify their goals and build confidence, but also uses their own influence to create opportunities, promote achievements and support progression into more senior roles.
For many women, a persistent challenge in the workplace is navigating expectations around leadership style. They are often encouraged to be more assertive, more vocal or more confident – yet when those behaviours are demonstrated, they can sometimes be interpreted differently than they would be for male counterparts. Sponsorship can help bridge this gap. By advocating for talent and ensuring contributions are recognised in decision-making forums, sponsors can help counter bias and ensure capability is evaluated fairly.
Models make a difference
Leadership is not only about setting strategy. It is about modelling the behaviours that shape workplace culture. That includes demonstrating that balance and boundaries are both respected and realistic. When senior leaders, both men and women, visibly prioritise responsibilities outside of work, such as leaving the office to pick up children or avoiding a culture of late-night emails and instant responses, it sends a powerful signal about what is truly prioritised within an organisation.
This is particularly important when considering the unequal distribution of unpaid work. Data from the Organisation for Economic Co-operation and Development (OECD) shows that women globally do almost 50% more unpaid domestic and care work than men. When a significant proportion of time outside the workplace is already committed, expectations around constant availability can disproportionately affect women’s ability to progress.
Respecting professional boundaries is therefore essential to building a more equitable environment. Clear boundaries help sustain long-term performance and allow talent to remain and progress within the workforce.
At the same time, the discussion also highlighted the importance of agency. Several speakers noted that actively putting oneself forward, be that asking for opportunities or seeking added responsibility, often opened the door to the most meaningful professional development.
The theme of our discussion was clear. Progress is evident, but the pace of change reminds us that there is still more to do. Businesses have a critical role to play in accelerating that momentum by championing sponsorship, modelling inclusive leadership behaviours and creating environments where talented individuals can thrive at every stage of their careers.
The software sector has found itself back under the spotlight as discussion around GenAI disruption gathers pace. The debate has intensified in recent weeks, after the launch of new AI‑driven tools prompted fresh questions about how quickly established workflows, currently inhabited by software companies, could shift. The accelerating pace at which foundational models are emerging has fuelled a sell-off in public software assets and scrutiny of private markets’ exposure to SaaS models, in both equity and credit.
At Hayfin, this is not a new theme. Early in 2024, we undertook an external review of GenAI‑related risk within our portfolio. Since then, we have embedded the relevant insights into day‑to‑day portfolio management and how we underwrite and invest in new opportunities. While the 2024 review didn’t point to a need for significant change across our portfolio, the result is that our exposure to the space today is deliberate, regularly measured and grounded in a clear view of where software remains resilient.
Across our Direct Lending strategy, software makes up less than 8% of fair value. It is worth recognising that, until very recently, software businesses were among the strongest performers in many institutional portfolios, and for a large number of these companies, the core fundamentals have not changed – they remain well‑run, cash‑generative assets with attractive return profiles. Performance across the software businesses within our portfolio remains in line with expectations. More importantly, this reflects the focus of our exposure: mission‑critical, workflow‑embedded software rather than content generation tools or basic analytics tools or platforms.
These companies sit deeper in customer processes, often underpinning core operational activities where reliability, specificity and domain knowledge matter. In our view, this type of functionality is structurally more difficult to disrupt, even as AI capabilities continue to evolve. Where these businesses also benefit from specialist sponsor ownership, the resilience is further reinforced through disciplined product development and operational support.
A commonly used lens for assessing software business quality is the Rule of 40. It’s a rule of thumb that measures whether a business’s annual revenue growth rate and its EBITDA margin, expressed as percentages and added together, exceed 40. It provides a simple measure of whether a company can balance growth with profitability – two characteristics that, when combined, tend to signal durable market positioning and a more sustainable long‑term operating profile. Businesses that consistently sit above this threshold often demonstrate strong customer value, efficient cost structures and an ability to invest through different cycles.
All companies within our software portfolio currently sit above the 40% benchmark. This is intentional. We prioritise businesses with diversified value propositions, meaningful customer embeddedness and the ability to sustain high margins alongside ongoing growth. We believe these attributes matter more, not less, in an environment where new technologies can alter competitive dynamics.
While industry commentary around GenAI continues to evolve, our approach remains rooted in fundamentals. Our focus is on software that sits at the heart of customer operations, with business models displaying clear relevance and the operational resilience required to manage both periods of change and across cycles. In practice, that means staying disciplined and backing businesses built to endure and generate stable cashflows rather than those chasing short-term momentum or reward.
Our industry is undergoing rapid change. When Tim and I first started Hayfin in 2009, private markets were still in their infancy. The term ‘private credit’ was yet to enter the mainstream. Fast-forward to 2026 and the asset class has grown considerably.
Media, regulators and governments now take a keen interest in what we do. Capital allocations – first from institutional clients, but increasingly from high-net-worths – have risen exponentially. Global private credit AUM has more than trebled in the past decade to over $1.5trn.
In this more mature market, investors are rightly asking their managers what sets them apart from the competition.
We’ve always answered this question with reference to three key competitive advantages:
- Scale
- Adaptability
- Culture
We see these three attributes becoming cornerstones of the industry’s most successful players.
As our platform has evolved over the past year, following the completion of our management buyout and the addition of Mubadala, Samsung Life and AXA IM Prime as shareholders alongside Arctos, these three differentiators ring even truer for Hayfin today.
Why scale matters
Market access has historically been a barrier to entry in private credit. We’ve previously outlined why that’s particularly the case for the fragmented European market.
However, we believe the size of our platform, reach of our network and depth of our proprietary data – gathered over more than 15 years, in the course of investing over €55bn into 500+ companies – should help us to continue retaining and growing lending relationships with high‑performing businesses in the years ahead.
With higher interest rates dragging on transaction activity in the post‑Covid period and slowing deployment for many funds, incumbency has proved a competitive advantage. Approximately half the capital deployed in our direct lending strategy over the past two years has been extended to existing borrowers. With €30bn of assets in the ground today, the opportunity to extend capital to existing borrowers will remain an important source of deal flow for Hayfin. That means we can maintain steady growth independent of broader M&A market cycles.
As AI adoption within private credit accelerates, and technology is increasingly used to crunch numbers and supplement human judgement during the underwriting process, we believe it’s the managers with the largest pools of historic investment data who will be best placed to generate insights.
Finally, we expect the benefits of increased fund sizes and lending capacity to intensify over time. A larger capital base and the ability to make bigger commitments should strengthen GPs’ hands, helping them achieve greater portfolio diversification and negotiate improved terms. With deal sizes continuing to rise, access to capital and close partnerships with blue‑chip LPs will be essential to remaining relevant.
How to adapt amid volatility
With continued volatility across markets and geopolitics, being dynamic and adaptable is crucial. European capital markets are smaller and less efficient than their US counterparts, and the risk‑return trade‑off can shift quickly. To counter this, we have deliberately designed our business to be able to pivot to capitalise on value and opportunity. This is reflected in our broad product suite, which enables us to serve the needs of both borrowers and LPs.
The emerging opportunity within asset‑backed lending is one such example. We are seeing increasing client interest in Europe in asset‑backed deals, as investors become more familiar with private credit and seek more complex, higher‑return and less commoditised opportunities. These types of investments have been a key focus of Hayfin from day one, with €12bn deployed to date, largely through the dedicated expertise we’ve built in sectors such as healthcare, real estate and maritime.
The benefits of flexibility are likely to keep rising alongside the evolution of the asset class. New deployment opportunities should emerge as private credit finances an ever‑increasing cross‑section of European economic activity. That steady expansion of private markets has driven the Bank of England’s inaugural exploratory analysis into how they intersect with the UK real economy, which we’re pleased to be participating in this year.
What a one‑firm culture means
The final ingredient to Hayfin’s success is our single‑firm culture. It has always been our aspiration to be Europe’s most integrated platform. If investors are looking for a multi‑boutique or a ‘pod shop’, there are many fine examples in the market. We aren’t one of them.
The Hayfin team now owns a substantial majority of the GP, and most of our employees are shareholders. This breadth of ownership is an important differentiator for a company of our type and size. That level of independence, autonomy and ownership creates value for LPs by enabling us to continue executing at pace and investing in the next generation of Hayfin leaders.
When we founded Hayfin in 2009, our ambition was to be a first mover capitalising on the emerging opportunity in European private credit. By building scale, resilience and adaptability in a firm that understands the power of collaboration, we believe we have created a platform for all investment environments. In today’s world – characterised by heightened risks and uncertainties alongside abundant opportunity – this flexibility is paramount.
Hayfin continues to be well positioned to support its clients, and I’m excited for what’s to come in the rest of 2026 and beyond.
Hayfin is pleased to announce that, through its Private Equity Solutions strategy, it is serving as lead investor in a €155 million Healthcare Continuation Vehicle established by Alantra Private Equity to support the next phase of growth of Health in Code.
Formed in 2020 through the merger of specialist genetic diagnostics companies, Health in Code has built an integrated clinical genomics platform serving healthcare providers in over 30 countries. Its offering spans next generation sequencing, diagnostic kits and its bioinformatics engine, supported by one of Europe’s most comprehensive variant databases.
Health in Code has grown at pace, driven by double-digit organic growth and through strategic add-ons to create a fully integrated player. Hayfin’s investment, alongside Mérieux Equity Partners acquiring a 20% equity stake in the platform, positions Health in Code well for continued growth and international expansion.
Gonzalo Erroz, Managing Director and Co-Head of Private Equity Solutions at Hayfin, commented: “We are pleased to partner with Alantra to support Health in Code at this pivotal stage of its evolution. As demand for advanced genetic diagnostics continues to accelerate, the Continuation Vehicle will provide Health in Code with the resources to broaden its footprint and continue delivering high quality, clinically impactful insights to Spanish hospitals.”
Ali Sangari, Director, Private Equity Solutions at Hayfin, commented: “This transaction underscores our experience of partnering with sponsors with whom we have long-standing relationships to back sector leading assets in the healthcare space. Health in Code has built a uniquely integrated genomics platform, and we are excited to back the team as they accelerate their next phase of growth.”
Hayfin has successfully completed a €550 million refinancing for Juvisé Pharmaceuticals. The transaction includes €400m of existing debt and a new €150m capital expenditure line fully dedicated to future M&A opportunities.
The refinancing follows Juvisé’s 2024 capital reopening, during which BPI France and Pemberton joined the company as shareholders when acquiring Ponvory® rights from Johnson & Johnson. This latest restructuring underscores Juvisé’s strong financial position and robust operational strength, with its entire portfolio now fully integrated.
The refinancing continues to strengthen Juvisé’s financial flexibility, extending its debt maturity profile and providing additional resources to support future growth initiatives, including potential M&A opportunities.
Howard Rowe, Portfolio Manager and Co-Head of Healthcare Investing at Hayfin, said: “We are looking forward to supporting Juvisé in this next phase of its development. We believe the company has demonstrated consistent operational discipline and a strong historic track record of integrating and scaling essential medicines. This refinancing strengthens an already solid foundation, and we look forward to continuing our partnership as Juvisé pursues its growth strategy.”
Alban Senlis, Managing Director and Head of France at Hayfin, added: “Juvisé has continued to build a resilient platform, delivering essential medicines and effective execution. This refinancing gives the team the flexibility to pursue new growth opportunities with confidence as they enter a promising new chapter.”
Frédéric Mascha, Founder and CEO of Juvisé Pharmaceuticals, said: “This refinancing is a key milestone for Juvisé, strengthening our financial position and enabling us to continue delivering on our growth with the ambition to acquire and commercialize new essential medicines for patients. We are delighted to finalize this operation with our longtime partner Hayfin, whose long-term approach and healthcare capabilities make them an ideal partner to support our growth.”
White & Case served as legal advisor to Hayfin on the transaction. Juvisé was provided legal counsel by Latham & Watkins, with Lazard acting as a Special Advisor.
Single-asset GP-led transactions have emerged as a core exit route, matching IPO volumes and offering investors access to high-performing assets. Innovative structures such as continuation vehicles, co-control partnerships and “CV squared” deals are reshaping the market, while lead buyers increasingly secure premium opportunities.
Explore how these key trends are driving this evolution and why they matter for investors focused on long-term value.
- Single-asset GP-led structures firmly established as “fourth” exit route in sponsor toolbox as the nature of “secondaries” evolves
GP-led secondaries have exceeded 10% of global sponsor-backed exit activity in 2023 and 2024 and are now comparable in capital volume to sponsor-backed IPO activity.[1],[2]
This growing prominence within the GP toolbox is not incidental. We believe that single-asset GP-leds specifically are fundamental departure from the traditional concept that secondary deals need to offer a “liquidity” solution. Our experience in the last seven years indicates that GP-led structures, if done with the right rationale, are driven by the desire to keep compounding returns of star assets that are difficult to identify and originate in an increasingly competitive primary buyout market.
Our view – “secondaries by name, but not by nature” – is based on a few fundamental differences between traditional secondaries and single-asset GP-led solutions.
The traditional perception of secondaries links to a few core characteristics, namely:
(i) a main goal of generating high velocity deployment (and return) of capital with returns below those achievable by a direct buyout strategy,
(ii) highly diversified exposure (with tens to hundreds of companies acquired at a time),
(iii) buyers are generalist in their selection approach when it comes to target company sector and size,
(iv) their analysis and diligence is predominately based on limited access to company-level information.
On the other hand, we now have market longevity and historical track record for the single-asset GP-led segment that points to returns which are equal or in excess of a direct buyout strategy, single-asset GP-led managers can have highly targeted strategy lens and clear differentiation in origination and asset selection approach, and their execution capabilities are similar to direct buyout peers with investment processes and diligence requiring deep expertise and experience in direct asset underwriting. In essence, two diametrically different approaches, all falling under the same label – “secondaries”.
2. Continuation Vehicles are just a fraction of what is possible
The desire to hold compounding assets for longer – alongside partners with deep knowledge of the company and sector – has also driven the expansion of what a single-asset GP-led solution is, beyond single-asset continuation vehicles. We see the use of co-control structures and transformational M&A equity financing as natural expansions of a continuation vehicle’s core appeal to investors, i.e. the opportunity to access star assets in partnership with, and closely aligned to, the sponsors best suited to own them.
Partnerships such as recently announced co-control investments by Impilo and KKR, Oakley Capital and Eurazeo, and PSG and Rivean Capital illustrate the template of sponsors bringing in a co-control sponsor to continue successful buy-and-build stories. In each instance, the incoming co-control investor brings additional capital and capabilities to support the second phase of ownership, such as for geographic expansion beyond the home market.
Retaining a larger stake, governance rights and attribution is an attractive proposition to the existing sponsor. They may face constraints however, such as a lack of follow-on capital or fund concentration limits. Creative single-asset GP-led structures can help solve these.
3. “CV squared” emerging as additional route to liquidity
Transactions where one continuation vehicle sells an asset to a newly formed continuation vehicle are drawing significant attention. In our view, these are a natural consequence of continuation vehicles’ widespread adoption over the past five plus years. We see these transactions as a validation of the core thesis – great compounders can deliver alpha returns over multiple ownership cycles. We have seen this pattern playing out in the European landscape multiple times over the years in different disguises. Outstanding examples, such as Hg’s journey with Visma, only highlight the attractiveness of supporting star assets as they scale in their journey to multi-regional, multi-product pre-eminence.
“CV squared” transactions require a case-by-case basis diligence of the sponsor’s motivation, alignment and the go-forward value creation plan for the asset, just as a new investment would. For the existing limited partners, a continuation vehicle solution imposes the decision to sell or roll on – but we see considerable benefit in the additional liquidity provided to the market by these so-called “CV squared” structures, which only add to the exit alternatives available to investors.
4. Lead role in mid-market deals becoming ever more key
We saw single-asset GP-leds emerging as an opportunistic allocation within broader secondaries strategies without dedicated teams and capital. Buyers would initially accept syndicates with multiple competitors participating because the availability of capital on the buyside was not adequate to the demand from sponsors holding high-quality companies. Increasingly, however, we see transactions with one or two clear lead buyers who seek to secure an allocation early (even before a process has commenced) – thereby minimising the allocation available for syndication.
For allocators selecting single-asset GP-led strategies, that means that the highest-quality opportunities will only be accessible to a decreasing set of managers. When committing capital to GP-led managers, we believe allocators should therefore carefully examine origination track records and sourcing advantage going forward, as only those with the requisite strategy focus, team bandwidth and repeatable processes will be able to identify and secure these transactions.
References:
[1] Sponsor-backed exit activity source: Jefferies Global Secondary Market Review, January 2025
[2] IPO and secondaries volume source: Pitchbook, Annual PE Breakdown 2024 (published January 2025)
Hayfin has announced the reset of Hayfin US XIV, LTD. (“Hayfin US XIV”), a $492.27m Collateralized Loan Obligation (“CLO”), which was first priced in July 2021. The reset closed on 20 October 2025 having priced earlier in the month. The deal attracted demand across the capital stack from repeat and new investors alike. Hayfin US XIV will be backed by a diversified portfolio of primarily US senior-secured loans and will have a five-year reinvestment period and a two-year non-call period.
The successful pricing of this reset builds on the 2025 momentum of Hayfin’s Global CLO Platform. This follows the February reset print of US XII, in addition to the three year-to-date resets across Hayfin’s Emerald series, its European shelf. As of 30 June 2025, Hayfin’s Global CLO Platform AUM stands at more than $8.4bn.
Peter Swanson, Hayfin’s Senior Portfolio Manager and Head of US High-Yield and Syndicated Loans, commented: “We believe the completion of this reset highlights our differentiated deployment strategy which aids to drive our performance and portfolio quality. While asset spreads have compressed, we believe this transaction optimises the overall structure, supporting our efforts to balance portfolio credit discipline and distribution outlook.”
Jefferies acted as an arranger for this reset and the original new issue. Orrick acted as portfolio manager counsel for the reset.
In this Q&A, Michaela Campbell, Head of Portfolio Monitoring at Hayfin, explains how her team is transforming data into actionable insights for LPs.
Michaela explores the growing importance of portfolio monitoring, the challenges of managing complex private credit data, and the role AI will play in shaping the future of the industry.
Tell us about the portfolio monitoring team at Hayfin.
As investors’ expectations around transparency grow, LPs are demanding more timely, standardised and high-quality data from GPs. It’s essential to have the infrastructure and resource to support bespoke requirements, as LPs increasingly seek to have consistent reporting from all of their GPs.
Further, with increasing geopolitical and macro-economic uncertainty, the need to be front-footed in monitoring portfolio health has never been greater. Our dedicated team has brought efficiency and streamlining to the reporting, ratings, monitoring and valuations processes, which allow for proactive portfolio management and early intervention.
I joined the firm last year to build out and lead this team. This was all part of a wider drive to invest in the quality of service we can offer to our growing LP base globally, at a time when institutional asset allocation to European private credit remains on the rise.
Our team is making real progress in the kind of insights we can extract from our portfolio companies’ underlying data. This has entailed a substantial investment of the team’s time and resource in structuring, standardising and analysing our portfolio data. Even within the past year, we’ve grown the portfolio monitoring team from two to eight with 2 more joining before the end of the year.
Why is portfolio monitoring important to LPs and what can they expect to gain from it?
For LPs, a portfolio monitoring function is essential for their managers to provide detailed reporting, proactive performance monitoring and value preservation.
Data granularity and enhanced analytic capabilities offer a range of benefits. We can exert better oversight of the portfolio, not only to allow for early engagement with management teams and sponsors, but also to inform future investment decisions, by using our insights and learnings for underwriting and portfolio construction and providing additional, contextual information to aid decision-making.
One example of enhanced analytic capabilities is our early warning indicators, which are fundamental to how we now review the portfolio and prioritise individual deals. This tool has been automated and will soon be available across teams.
Similarly, we were proactive in understanding how PIK-toggles impacted fund-level performance, and also in assessing first and second-order impacts from tariffs to the portfolio.
Through tools like this we believe we can be better partners – to both our borrowers and our LPs. Being able to identify red flags early enables us to engage with borrowers to protect value. Meanwhile, we give LPs the means to assess performance and make informed decisions about their allocations, as well as speeding up their due diligence processes on new fund allocations.
What makes data analysis so complex in private credit?
There are a few structural factors which help explain why the private credit industry has been a relatively slow adopter of automation and big data analytics.
The industry is relatively young, having only emerged in Europe post-crisis. As lenders, you rely on your borrowers to provide high-quality data, and you don’t necessarily have the same levers to pull as the shareholders to compel them to do so. That all impacts the size and quality of the dataset.
With over €50 billion invested in more than 500 companies over 15 years, Hayfin has built a proprietary data bank that supports differentiated and data-driven insights in Europe. We have long requested high-quality, consistent information from our portfolio companies to enable performance tracking. We believe this is now a key differentiator for our private credit platform.
We are now grappling with almost the opposite challenge. Like other large alternative asset managers, we deal with a high volume of data from a variety of investments which is received in many different formats, frequently changing over time and often multi-lingual. That requires us to standardise data from multiple unstructured sources. The quantity of data we receive is growing so cracking the standardisation problem isn’t just about cleaning up data; it’s about gaining a real competitive edge. We believe the firms that can collect, structure, analyse and share this information the fastest and most consistently, will be the preferred choice for asset owners and investors.
One additional challenge is that, increasingly, LPs want reporting delivered in a consistent format, often tailored to their internal systems. That puts pressure on GPs to evolve their processes and technology infrastructure to accommodate those requests.
What does the future hold for portfolio monitoring?
It almost seems too cliché to mention at this point, but we believe that elements of portfolio monitoring will centre around the intelligent use of generative AI. The industry is relatively early in its AI journey, but the pace of improvement and adoption will only accelerate.
The tricky nature of unstructured portfolio data has somewhat slowed the industry’s adoption of advanced data techniques compared to other sectors, but AI is already showing promise in streamlining underwriting, data analysis and deal logistics.
It’s important as an industry that we don’t rush the integration of generative AI into portfolio monitoring, as these GenAI models are often not sufficiently accurate to be fully relied upon. AI should supplement, but never replace, the human judgment, governance and validation that must remain central to our investment activities and portfolio monitoring.
Over time, I expect AI will help the industry resolve pervasive issues related to standardising performance tracking, as well as helping to detect anomalies and incorporate alternative data sources to flag emerging risks. But handling sensitive borrower data requires purpose-built tools and robust infrastructure, which will no doubt take time to perfect.
Overview
As private markets continue to evolve, new challenges drive sponsors, companies, banks and asset managers to seek creative financing solutions. While private credit funds are sitting on ample reserves of dry powder, much of this is earmarked for lower risk opportunities, in funds that are increasingly averse to structural or situational complexity.