CPP and Lexington take lead on Hayfin’s sizeable strip sale

Hayfin is running a secondaries transaction on an account managed on behalf of BCI, Secondaries Investor has learned.

CPP Investments and Lexington Partners have taken the lead on a secondaries process run by London-based lender Hayfin Capital Management, Secondaries Investor has learned.

Hayfin is running a secondaries process on an account managed on behalf of British Columbia Investment Management Corporation, according to four sources familiar with the matter.

Hayfin is selling a strip of exposure in the private markets portfolio containing co-investments, GP-leds and fund stakes, a source told Secondaries Investor. The total deal size is just under €1 billion, which includes purchase price plus unfunded commitments, another source said.

Hayfin will continue to manage the assets, Secondaries Investor understands. PJT Partners is advising on the transaction, according to two sources.

CPPIB, Lexington, PJT and Hayfin declined to comment on the transactions.

Strip sales, along with tender offers, structured/preferred equity and secondary directs, represented around 20 percent of the $18 billion in GP-led volume seen in H1 2023, according to Jefferies’ first-half volume report. Total secondaries volume came in at around $43 billion, the report showed.

Earlier this month, it emerged that New Enterprise Associates is running a large strip sale process involving stakes in numerous investments across funds. The deal, which hit the market in November but has been quietly taking shape for several months, could total more than $1 billion depending on its final structure.

Hamilton Lane also took the lead on a $360 million GP-led process this year involving assets from L Catterton’s third Asia-focused vehicle. Buyers acquired a structured minority interest in most of the 15 to 20 investments in L Catterton Asia III portfolio companies, Secondaries Investor reported in June.

TDR Capital had also been mulling running a strip sale on its third and fourth flagship funds, Secondaries Investor reported in October, while Tiger Global was widely reported to be running a process to sell stakes in direct assets earlier this year.