HarbourVest beats target for co-investment fund

The fund raised $1bn on a $750m target and was oversubscribed.

HarbourVest Partners has held a final close on $1 billion for its global co-investment fund, HarbourVest Partners 2013 Direct Fund, according to a statement.

HarbourVest launched the fund in 2012 with a $750 million target. The $1 billion includes a $100 million general partner commitment from HarbourVest Global Private Equity, the group’s Euronext-listed vehicle. The fund will make direct investments globally, primarily in small and mid-market companies, and has already deployed 25 percent of its capital in 10 buyout and growth equity deals in the US, Australia and Latin America. More than 30 investors participated in the oversubscribed fund, including corporate pensions, public pensions and endowments.

“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,” Rob Wadsworth, a managing director at HarbourVest, said in the statement.

HarbourVest’s prior co-investment fund, 2007 Direct, closed on $734 million and is fully invested. The 2007 fund includes investments across the US, Europe and Asia-Pacific and deployed more than 64 percent of its capital in companies with enterprise values less than $1.5 billion.

In January, HarbourVest announced its debut divestment from the 2013 Direct Fund. HarbourVest sold online and mobile banking company Digital Insight to consumer transaction technology company NCR for about $1.65 billion. The initial investment was made in August 2013, with other HarbourVest funds and funds managed by Thoma Bravo, according to the statement.

HarbourVest’s direct co-investment team is made up of more than 20 investment professionals. The team is led by five managing directors: William Johnston, Peter Lipson, Ofer Nemirovsky, Alex Rogers and Wadsworth, according to the firm’s website.

HarbourVest has additional investment programs focused on venture capital, buyout, mezzanine debt and credit investments through primary fund investments and secondary purchases. The firm was founded in 1978 and has invested about $38 billion since inception.