HarbourVest Partners has held final closings for its first mezzanine-focused co-investment fund at $375 million and its third real assets fund at $366 million.
Mezzanine Income Fund I was oversubscribed and closed above its $250 million target at its hard cap of $375 million. Real Assets Fund III is HarbourVest’s first commingled real assets fund and closed above its $300 million target at $366 million. Limited partners in both funds, more than half of which are new to HarbourVest, consist of pension funds, insurance companies, endowments and family offices across the US, Canada, Latin America, Asia and Europe.
“HarbourVest has been investing in mezzanine since 2003, and over the last decade we’ve seen consistent growth in the demand from private equity sponsors for mezzanine debt partners to help complete transactions,” said Peter Lipson, Managing Director, HarbourVest. “Our dedicated mezzanine fund will continue to differentiate HarbourVest as a preferred partner to GPs, while being highly complementary to our direct co-investment equity business—particularly in terms of accessing and evaluating deals.”
“What differentiates HarbourVest is our strong equity orientation, which brings with it a unique way of looking at mezzanine and engaging with GPs.”
HarbourVest invests in venture capital, buyout, mezzanine debt, credit, and real estate through primary fund investments, secondary purchases, and direct co-investments. The firm has more than 400 employees, including 100 investment professionals, located in Asia, Europe, Latin America, and the United States. In over 30 years of investing in private equity, HarbourVest has committed more than $31 billion to newly-formed funds, completed over $15 billion in secondary purchases, and invested $6 billion directly in operating companies.
“What differentiates HarbourVest is our strong equity orientation, which brings with it a unique way of looking at mezzanine and engaging with GPs,” added Mr. Lipson. “Our roots in equity allow us to be more agile in terms of how we structure deals. It also better aligns us with the sponsor and makes us a more valued mezzanine partner.”
“Specialized programs such as our mezzanine and real assets funds demonstrate our continued emphasis on offering solutions that help our clients invest in niche strategies and markets that are difficult to access,” said John Toomey, Managing Director, HarbourVest. “HarbourVest’s growth in real assets and expansion into private credit further broadens the reach of our solutions and our ability to meet and anticipate client needs. We are particularly proud that half of the limited partners in these funds are new to HarbourVest, demonstrating that these offerings are consistent with our strategic plan to grow our client base.”
HarbourVest has offices in Beijing, Bogotá, Boston, Hong Kong, London, Seoul, Tel Aviv, Tokyo, and Toronto (www.harbourvest.com).
© 2017 Private Equity Professional | April 10, 2017
