HarbourVest backs Investcorp stapled deal

The firm backed a $185m secondaries process on the Gulf-headquartered investor's 2007-vintage tech fund and made a stapled commitment to its successor.

HarbourVest Partners has backed a GP-led process on a mature technology fund managed by Investcorp.

The two remaining assets in the 2007-vintage ITP Fund III have been moved into a $185 million continuation vehicle named Investcorp Secondary Fund 2018 and backed by HarbourVest, according to a statement from the Bahrain-headquartered alternative manager.

HarbourVest also made a stapled commitment to successor ITP Fund IV, which closed above target on $400 million in December, according to a source familiar with the matter. The size of that commitment is not clear.

Investcorp and HarbourVest declined to comment on the stapled element.

The deal allows ITP, an Investcorp unit, to provide “active support and fresh capital over an additional holding period under continued management,” the statement noted.

The names of the two assets have not been disclosed.

It is understood that Investcorp Secondary Fund 2018 has a four-year duration with two optional one-year extensions. All limited partners chose to sell their stakes to HarbourVest rather than roll over into the new vehicle.

ITP Fund III closed on $500 million in 2008, above its $400 million target, according to PEI data. Original investors include the California Public Employees’ Retirement System and Cornell University endowment.

In July, Secondaries Investor revealed that HarbourVest was returning to market with a dedicated secondaries fund. Dover Street X is seeking as much as $6.5 billion, with co-investment vehicles and separately managed accounts accounting for a significant proportion.

Investcorp Technology Partners invests between $25 million and $50 million in fast-growing, founder-owned businesses headquartered in Europe. It has raised $1.5 billion for the strategy since 2001.