HarbourVest Closes Inaugural Direct Lending Fund

HarbourVest Closes Inaugural Direct Lending Fund

This close follows HarbourVest’s June closing of its $833 million junior capital and co-investment fund

HarbourVest has held a final closing of HarbourVest Direct Lending Fund LP (HDL) with more than $892 million in capital commitments. The new fund was oversubscribed and closed above its original target of $600 million.

Limited partners of HDL include public and private pension funds, insurance companies, endowments, family offices, and ultra-high net worth private sector investors from North America, Australia, Israel, Europe, and Latin America.

The HDL fund will make senior credit investments – including first lien, unitranche, and second lien debt – in private equity-backed middle-market companies, predominantly in North America.

“We are pleased to mark the final close of our inaugural, dedicated direct lending fund, bringing our total capital under management for credit investments to over $3.3 billion,” said John Toomey, a managing director at HarbourVest. “The past year has demonstrated the resilience of the asset class and reinforced our objective to broaden the reach of HarbourVest’s solutions to help clients invest in rapidly growing strategies.”

The close of HDL follows HarbourVest’s June 2021 closing of Credit Opportunities Fund II LP, with $833 million of capital. This fund makes junior credit investments and equity co-investments in private equity-backed middle-market companies headquartered in North America.

“HarbourVest’s credit platform differentiates itself in the marketplace through our proprietary sourcing engine, which is driven by the breadth and depth of our primary and secondary partnerships,” said Karen Simeone, a managing director at HarbourVest. “Private credit deal flow continues to accelerate, propelled by increased private equity deal activity and by sponsors increasingly choosing the flexibility and certainty of execution that private financings offer versus the syndicated loan market.”

HarbourVest has more than 700 employees, including more than 170 investment professionals across Asia, Europe, and the Americas. As of June 2021, the firm had $80 billion in assets under management across a range of strategies including venture capital, buyout, mezzanine debt, credit, and real estate. HarbourVest has offices in Beijing, Bogotá, Boston, Dublin, Hong Kong, London, Seoul, Tel Aviv, Tokyo, and Toronto.

© 2021 Private Equity Professional | September 28, 2021

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