HarbourVest closes US programme on $4bn

The Boston fund of funds veteran will invest in primary and secondary venture and buyout partnership interests.

Boston-based private equity fund of funds manager HarbourVest Partners has announced the close of HarbourVest Partners VII on $4 billion (€3.27 billion) to be invested exclusively in the US.

 

The programme consists of the Venture Partnership Fund and Buyout Partnership Fund, each of which were oversubscribed and closed on $2 billion. Of the 120 total investors in both funds, more than 40 percent were European and Asian institutions; most investors made commitments to both. The popularity of the venture fund outpaced the buyout fund as HarbourVest approached final close, so the firm placed certain restrictions on capital commitment allotments, a firm spokesperson said.

 

The statement said HarbourVest will invest in both primary and secondary partnership interests over a four- to five-year investment cycle. Each fund will commit between $200 million and $300 million per year to newly formed partnerships and $100 million to $200 million per year to secondary purchases.

 

Each fund has already made initial investments and is currently 20 percent committed, the statement said. Included in the commitments are Sequoia Capital, National Enterprise Associates, Silver Lake Partners, and Kelso & Co.

 

HarbourVest Partners, founded in 1982, is the oldest private equity fund of funds in the US, with offices in Boston, London and Hong Kong. Over the past 20 years, the firm has committed $12.8 billion to primary and secondary partnerships, and through direct investments into operating companies.

 

In November, HarbourVest teamed with global financial services giant UBS AG in a “structured secondary” joint venture that saw HarbourVest acquire a percentage of UBS private equity portfolio.