HarbourVest Partners has collected about $205 million for its latest direct co-investing vehicle, HarbourVest Partners 2012 Direct Fund, according to documents filed with the US Securities and Exchange Commission.
The fund is targeting $750 million and will make co-investments globally, according to Colombia-based placement agent Roam Capital's website, which lists June 2013 as the anticipated final close date. Last year, the Oregon Investment Council committed $50 million to the fund.
HarbourVest also participates in co-investments through a $125 million partnership with the New York State Teachers’ Retirement System established in 2010. NYSTERS is also a limited partner in the firm’s fifth fund of funds.
HarbourVest was unavailable for comment at press time.
The firm’s previous co-investment vehicle, Harbourvest Partners 2007 Direct fund, was similar in size to the current fund’s target, holding a final close on $734 million.
LPs have had a growing appetite for co-investments in the past few years as they look for more exposure to direct investments. Co-investments can provide valuable insight into how a sponsor works with management and adds value to the companies in which it invests.
The proportion of LPs making direct investments – either on a standalone or co-investment basis – in companies has risen substantially over the last six years, from 35 percent in 2006 to 66 percent this year, according to Coller Capital's latest Global Private Equity Barometer. That is likely to rise still further, with 42 percent of respondents saying they would increase their level of direct investment over the next three years.
HarbourVest is also in market with its latest secondaries fund, Dover Street Partners VIII, which has a $3 billion target, according to data provider Private Equity Connect.
HarbourVest was founded in 1978 and has invested approximately $38 billion since inception, with a focus on fund of funds as well as secondary, co-investment and direct strategies. In addition to Tokyo and Hong Kong, the firm maintains offices in Boston, London and Bogotá.