HarbourVest in $1b final close on co-investment fund
HarbourVest Partners has raised $1 billion for its latest global direct co-investment fund. The vehicle was oversubscribed, beating its $750 million target.
The fund, HarbourVest Partners 2013 Direct Fund, has already closed 10 buyout and growth equity deals - accounting for 25% of its corpus - in the US, Australia and Latin America. The sale of one co-investment in January was the portfolio's first significant liquidity event and initial distributions were made to LPs shortly after the final close. The vehicle has more than 30 investors.
According to AVCJ Research, the fund launched in June 2012 and reached a first close of $379 million one year later.
Its predecessor, which closed at $734 million in 2008, is now fully invested across the US, Europe and Asia Pacific, and making distributions. Nearly two thirds of the corpus was committed to companies with enterprise valuations below $1.5 billion.
The 2013 Direct Fund will follow a similar remit, predominantly targeting small and mid-market companies. These will be buyout, recapitalization, growth financing and special situations opportunities.
"A critical component of our success is our direct investment pipeline made up of qualified, actionable opportunities that are often pre-screened by general partners prior to HarbourVest's review," said Rob Wadsworth, a managing director at the firm, in a statement. "Our direct co-investment team of more than 20 investment professionals is flexible in providing capital solutions to general partners and selective in identifying high value opportunities for our investors."
HarbourVest has committed more than $25 billion to newly-formed funds over the last 30 years, as well as completing more than $11 billion in secondary purchases and investing $4 billion directly in operating companies.
The fund close comes two months after Partners Group raised EUR1.5 billion ($2 billion) for its largest-ever private equity direct investment program. It also focuses on mid-market opportunities.
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