HarbourVest, UBS in $1.3bn secondary JV

(PrivateEquityCentral.net) Boston-based private equity firm and investment advisor HarbourVest Partners has teamed with global financial services giant UBS AG on a “structured secondary” joint venture that sees HarbourVest acquire a percentage of UBS’ private equity portfolio.

Exact terms of the deal were not disclosed. UBS has approximately $1.3bn in 50 limited partnership commitments to private equity firms.

Both firms will operate the joint venture, according to Fred Maynard, a managing director at HarbourVest.

“We aren’t buying and walking away,” Maynard said. “We will be working with UBS for some years to come on this joint venture.”

Maynard added that the nature of the joint partnership is such that both firms will profit from the success of the investments.

“We didn’t buy Y percentage to get Y cash flows,” Maynard said. “The cash flows are shared but we did buy into a deal that has a potentially attractive return for us.”

Late last month, HarbourVest announced it promoted Brett Gordon and Mary Traer to principal from vice president in a spate of promotions. The firm also announced it promoted Hannah Tobin, Scott Voss and Christopher Walker to vice president from senior associate; Brian Buenneke, John Fiato and Jeffrey Keay to senior associate from associate; and Corentin du Roy, Clayton Gran and Peter Marmer to associate from investment analyst.

HarbourVest is a global private equity investment firm that operates funds-of-funds, secondary investment vehicles and direct investment vehicles. The firm has 51 investment professionals deployed in Boston, London and Hong Kong. The firm has committed more than $8.4bn to private equity funds and has completed $1.7bn in secondary partnership purchases. The firm has also invested $2bn directly in operating companies. In November 2002, the firm held a final close on its hybrid direct investment/fund-of-funds, HarbourVest International Private Equity Partners IV, on $2.8bn, exceeding the vehicle’s initial target of $2.5bn.