Hayfin Capital Management secured over $17.1 billion for its latest direct lending fund, a significant sum that highlights the growing concentration of capital among large European credit managers. The fund is already more than half deployed across 35 companies, including Juvisé Pharmaceuticals and Hipp.

This substantial raise occurs as a divide widens between top-tier credit firms and smaller players. Mark Tognolini, Hayfin’s co-CEO, noted that institutional investors are consolidating relationships with managers like Hayfin, ICG, Ares, and Arcmont, who possess extensive track records. This trend persists despite recent investor unease in certain private credit segments.

Institutional allocators, however, continue to increase their exposure to private markets, with sovereign wealth funds indicating plans to boost allocations. European managers differentiate their market by citing lighter exposure to software lending and less reliance on retail capital, a narrative attracting US investors seeking diversification.