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HarbourVest Partners raises $1B global direct co-investment fund

HarbourVest Partners, a global private equity fund of funds, has closed its global direct co-investment fund at $1 billion. The firm has beaten its original target of raising $750 million.

The firm's previous co-investment vehicle, which raised $734 million in 2007, is now fully invested. This fund will continue to invest in SMEs, focusing on buyouts, growth financing and special situation transactions. More than 64 per cent of the capital has been deployed in companies with enterprise value below $1.5 billion.

The new fund will continue to invest in SMEs, focusing on buyouts, growth financing and special situation transactions. The fund has already invested in 10 buyout and growth equity deals in the US, Australia and Latin America, representing a quarter of the fund.

More than 30 investors have participated in the fund, including a broad array of institutions such as corporate pensions, public pensions, endowments, Taft Hartley plans and global foundations.

“Over the past three decades, HarbourVest’s team has invested over $4 billion in 270 companies,” said Rob Wadsworth, managing director at HarbourVest.

At the start of the year the firm sold Digital Insight to consumer technology group NCR for $1.65 billion. HarbourVest has more than 280 employees, including 80 investment professionals, deployed in Asia, Europe, Latin America and the US. The team has committed more than $25 billion to newly-formed funds, completed over $11 billion in secondary purchases and invested $4 billion directly in operating companies. 

The funds in which HarbourVest has invested in Asia include CVC Capital Partner Asia Pacific, Archer Partners and Pacific Equity Partners. Last year the fund led the acquisition of the portfolio of private equity investments in Asia from Credit Suisse, its affiliates and other investors in Credit Suisse Private Equity Asia Partners (CSPEA). It worked with Harjit Bhatia-led Asia Growth Capital Advisors for the transaction.

(Edited by Joby Puthuparampil Johnson)

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