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HarbourVest enters land of giants with latest secondaries fund

Dover Street XI is targeting 67% more than its predecessor, which would put it among the largest secondaries funds ever raised.

HarbourVest Partners is aiming to join the ranks of the very largest secondaries funds.

The Boston-headquartered alternatives manager is targeting $13.5 billion for Dover Street XI, according to two sources familiar with the matter, a 67 percent increase on the amount raised for 2018-vintage Fund X.

This would place it second behind Ardian’s ASF VIII and Lexington Capital Partners IX, which each raised $14 billion, on the list of largest secondaries funds ever raised, according to Secondaries Investor data.

It is not clear if the vehicle is officially in market. A Luxembourg-domiciled alternative investment vehicle was registered in October.

A HarbourVest spokesperson declined to comment.

Dover Street X closed on its $8.1 billion hard-cap in October 2020. It was targeting $5.75 billion. Investors included State of Michigan Retirement Systems, which committed $150 million, Connecticut Retirement Plans and Trust Funds ($100 million) and Nebraska Investment Council ($50 million), according to Secondaries Investor data.

Among the deals backed by HarbourVest in the past year are a $362 million single-asset process on Alpine Investors portfolio company TEAM Services Group and a continuation fund and staple commitment involving Spanish venture capital firm Kibo Venture Partners, Secondaries Investor reported.

The firm also led the acquisition of a $1.5 billion portfolio from Public Sector Pension Investment Board, which included unfunded capital for the Canadian pension’s co-investment programme, affiliate title Buyouts reported.

The largest secondaries firms have started to return to market in the past six months. Lexington Partners launched its 10th fund in May with a target of $15 billion, Secondaries Investor reported.

Strategic Partners raised $12.8 billion in a single quarter against a target of $13.5 billion for its latest fund, Secondaries Investor reported last month.

Strategic Partners Fund IX “is on track to reach approximately $20 billion, which will be the largest secondaries vehicle ever raised”, said COO Jonathan Gray during a recent Blackstone earnings call.