Hayfin Capital Management has announced the final closing of the Hayfin Direct Lending Fund, with total commitments exceeding €2 billion.

Existing investors agreed to the upsize from the original fund hard cap of €1.5 billion following the strong pace of deployment during the fundraising period. Together with Hayfin’s balance sheet and separately managed account this provides the firm with roughly €3 billion of capital dedicated to the Direct Lending strategy.

The fund attracted commitments from leading institutional investors, including corporate and government pension funds, sovereign wealth funds, endowment funds, insurance companies, and family offices.

The fund will invest in senior secured loans to European middle market companies, focusing on directly originated opportunities where Hayfin can provide alternative financing solutions or supply capital as part of a more traditional bank-driven process.

Hayfin was one of a number of recipients of investment from the Business Finance Partnership, which was established by the government to encourage private sector lending in the U.K.

The closing of this fund brings HayFin’s total assets under management to roughly €5.4 billion. It follows the fundraising of the €1.4 billion Special Opportunities Credit Fund, which invests opportunistically across primary and secondary credit markets in special situations, and the launch of the €404 million Ruby II CLO. – Sarah Husband