All News: HarbourVest Closes Record $18.5 Billion Secondaries Funds
In a groundbreaking move, HarbourVest Partners, a leading global private markets asset manager, has closed its eleventh private equity secondaries fund, Dover Street XI LP, at a record $15.1 billion. Additionally, the firm raised $3.4 billion for its Secondary Overflow Fund V LP, bringing the total capital raised to an unprecedented $18.5 billion.
Key Highlights:
- Dover Street XI LP is expected to make 40 to 60 investments, with an average investment size ranging from $200 million to $400 million.
- The fund will allocate 70% to 85% to buyouts, 10% to 20% to growth equity and venture, and up to 15% for opportunistic investments.
- The diverse investor base includes corporations, pension funds, endowments, foundations, sovereign wealth funds, and private wealth investors.
- HarbourVest’s earlier Dover funds have demonstrated strong performance, with Dover IX (2016 vintage) achieving a net IRR of 65.6% and Dover VIII (2012) delivering a net IRR of 22.4%.
News: Navigating the Evolving Secondaries Market
The private equity secondaries market has experienced substantial growth in recent years, driven by increasing demand for customized liquidity solutions. This growth has been accompanied by a rise in complexity, with firms like HarbourVest adapting to meet the evolving needs of general partners (GPs) and limited partners (LPs) alike. According to a study by Bain & Company, the global private equity market is expected to continue growing, driven by increasing allocations from institutional investors.
John Toomey, Managing Director at HarbourVest, emphasized the firm’s dedication to building an investment pipeline that benefits investors across multiple strategies and separately managed accounts. “Our differentiated approach and global platform enable us to deliver innovative solutions tailored to the unique needs of our clients,” Toomey stated.
New Funds: Competitive Advantage through Customized Solutions
HarbourVest’s ability to deliver customized liquidity solutions to GPs and LPs at scale has been a key factor in its success. Jeff Keay, Managing Director, highlighted this competitive advantage: “Our global secondaries team and decades of experience position us to navigate the complexities of the market and provide tailored solutions to our clients.”
The firm’s interwoven platform provides clients access to global primary funds, secondary transactions, direct co-investments, real assets and infrastructure, and private credit. With over 42 years of experience and more than $127 billion of assets under management as of March 31, 2024, HarbourVest has established itself as a trusted partner in the private markets.
PEP News Template: Outlook for the Secondaries Market
The private equity secondaries market is expected to continue evolving, with increasing demand for customized liquidity solutions and a growing focus on environmental, social, and governance (ESG) considerations. HarbourVest is well-positioned to navigate
