HarbourVest closes flagship fund-of-funds at $1.7b
HarbourVest Partners has closed its latest fund-of-funds targeting European and Asian markets with $1.7 billion in commitments.
HarbourVest International Private Equity Partners (HIPEP VIII) was launched in September 2016 with a target of $1 billion. LPs include more than 40 investors across Asia, North America, and Europe, including private and public pensions, corporations, foundations, and family offices.
“This latest fundraise shows the demand from existing and new investors for global, ex-US private equity,” Carolina Espinal, a managing director at HarbourVest, said in a statement. “Our thematic strategy resonated with investors targeting the region due to the flexibility of access to value and growth opportunities and a diversified cash flow profile.”
HIPEP VIII is expected to deploy about 50% of the capital in Europe, with 35% invested in Asia and 15% in the rest of the world. Of this, 80% will be primary investments and 20% will be secondary and direct co-investments. It began deployment in May 2017 and has already made 10 commitments to managers in Asia Pacific and Europe, representing about 29% of its corpus.
The fund’s predecessor, HIPEP VII, raised $1.5 billion for a similar mandate in 2015. In total, HarbourVest claims to have invested more than $25 billion across Asia Pacific, Europe, and other emerging markets during the past 30 years.
The firm claims more than $49 billion in assets under management globally. Since 1982, it is said to have committed some $32 billion to newly formed funds, completed more than $18 billion in secondary purchases, and invested more than $7 billion directly into operating companies. Its Asian footprint includes offices in Beijing, Hong Kong, Tokyo, and Seoul.
Recent fundraising activity includes a $1.7 billion close last year for HarbourVest Partners Co-Investment IV, which exceeded an original target of $1 billion. This followed a final close of about $4.8 billion for a global secondaries fund known as Dover Street IX, which had initially targeted $3.6 billion.
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