Hg collects $8bn on way to triple fund close – exclusive

The firm is capital-raising across its Saturn, Genesis and Mercury vehicles.

Hg has amassed around $8 billion across three private equity vehicles and is preparing to hold the final closes on the funds, Private Equity International has learned.

The London-headquartered firm has been fundraising for its Saturn 2, Genesis 9 and Mercury 3 vehicles and plans to hold the final closes on their hard-caps as early as April, according to a source familiar with the matter.

Upper-mid-market-focused Saturn 2 has so far raised around $4 billion exceeding a $3.5 billion target and has held interim closes. Mid-market-focused Genesis 9 has collected €3 billion out of a €3.3 billion target while Mercury 3, which focuses on smaller tech businesses, has raised at least €1 billion out of a €1.1 billion target, according to the source. Both Genesis 9 and Mercury 3 have held their first closes.

Investment committee documents prepared by Hamilton Lane for the Pennsylvania Public School Employees’ Retirement System from February show Genesis 9 has a hard-cap of €4.4 billion and that Hg does not expect to raise more than $4.9 billion for Saturn 2, as PEI reported.

Predecessor vehicles across the three-fund series – Saturn, Genesis and Mercury – were sterling denominated, according to PEI data.

Hg will make a GP commitment of at least 2.5 percent to the Genesis and Saturn vehicles, the documents note.

It is understood that Rede Partners is advising Hg on the fundraise while Proskauer is providing legal counsel.

Private equity fundraising figures for the first half of the year are unlikely to be substantially affected by the covid-19 crisis, with the impact more likely to hit in the second half, market sources told PEI last week.

“Anyone who got well advanced and anticipated an H1 close are pushing hard to make that close – and I think they will make them,” said one LP involved in several fundraising processes. The best GPs are still aware that they still have the upper hand and that investors want to get into their funds, the LP noted.

“In some instances, they are ramping up momentum,” the LP added.

Hg, Rede and Proskauer declined to comment.

– Toby Mitchenall contributed to this report.

– An earlier version of this story cited the PSERS document showing Genesis 9’s hard-cap in sterling; this should have been euros.