HarbourVest raises $4bn for fifth non-US FoF

HarbourVest Partners’ latest fund of funds has a Europe-focussed main fund and an Asia Pacific-focussed sidecar fund.

HarbourVest Partners has held a final close on its fifth fund of funds vehicle. HarbourVest International Private Equity Partners V is composed of a €2.375 billion ($3.51 billion) core fund and a $527.3 million Asia Pacific and rest of world sidecar fund. The fund is HarbourVest’s fifth dedicated non-US fund.

The main fund will invest in newly raised private equity partnerships and secondary positions in existing partnerships, focussing on small, medium and large buyout and venture capital partnerships in Europe, with selected investments in the Asia Pacific region, Australia, Japan and other non-US regions. The fund began investing in June 2005, and will continue to deploy capital through 2008. More than 50 percent of the fund is currently committed.

The main fund’s 106 institutional limited partners include corporate pensions, public pensions, endowments, foundations, family trusts and corporations. Half of the LPs are based in the US, while the rest are based in Europe or other countries.

The Asia and ROW fund will focus primarily on the Asia Pacific, with some investments in Israel, Eastern Europe, Latin America and South Africa. The fund will invest in newly raised, buyout-focussed partnerships. The fund began investing in July 2006 and will continue investing through 2008. More than 40 percent of the fund has been committed. The Asia fund has around 20 limited partners

HarbourVest’s fourth non-US fund of funds began investing in 2001 and was fully committed within four and a half years. That fund held a final close on $2.8 billion in November 2002.

This is the firm’s second major recent fundraise. In December HarbourVest completed its first public offering, raising $830 million on Euronext Amsterdam. The listed vehicle is already 100 percent invested in existing HarbourVest funds diversified across stage, geography and vintage.