HarbourVest Partners, a global private equity fund of funds, had reached the final close of its fourth co-investment fund at $1.75 billion hard cap, surpassing the original target, it announced on Friday.
The fourth fund, HarbourVest Partners Co-Investment IV, which had an original target of $1.0 billion and hard cap of $1.5 billion, was oversubscribed. The hard cap was raised to $1.75 billion during fundraising, with the support of limited partners, the company said in a statement.
“We’re excited by the confidence our clients have placed in us that resulted in such a successful fundraise,” said Peter Wilson, MD and member of the Executive Management Committee, HarbourVest.
“HarbourVest has been investing directly in companies since 1983 and our co-investment funds capitalize on the general partner relationships we have built since then. These relationships allow us to provide clients with access to a strong and diverse pipeline of global investment opportunities in an ever-evolving private equity market,” he added.
The fund has invested approximately 30% of its capital to 11 co-investments alongside lead sponsors diversified across the Americas, Europe, and Asia.
“The larger fund size, combined with our ability to invest across the capital structure—growth equity, buyout and mezzanine—positions us as a strategic partner to leading private equity firms who are attempting to win and close transactions,” said Ian Lane, MD, HarbourVest.
“The strong response to this latest fundraise is a clear indication of the value our clients achieve through our differentiated co-investment strategy,” he added.
The fund’s initial investments included the acquisition by EQT Partners of Press Ganey, a healthcare database company, and a co-investment alongside ABRY Partners in Acrisure, a national retail insurance broker.
HarbourVest Partners Co-Investment IV claims to have more than 100 investors from across a range of geographies including Australia, China, Colombia, Korea, Israel, Peru, Switzerland, the United Kingdom and the United States. It includes institutional clients such as private and public pensions, corporations, foundations, and family offices, as well as clients through private distribution partners.
The firm has more than $40 billion in assets under management.