HarbourVest Partners‘ 1991 and 1996-vintage secondaries funds have been its best performing vehicles focusing on the strategy, a document detailing the performance of the global investment firm’s funds has revealed.
Dover Street Ia had a 31.5 percent net internal rate of return and a 2.2x total-value-to-paid-in (TVPI) multiple as of 31 March 2016, according to the document produced by the firm for an investor, obtained by Secondaries Investor. Dover Street III delivered a net IRR of 31.6 percent and a 2.1x TVPI as of the same date.
The Boston-headquartered firm’s 2011-vintage Dover Street VIII fund had a 30.5 percent net IRR and 1.4x TVPI, the document shows. Dover VIII launched in 2011 and closed in July 2013 on $3.6 billion, according to PEI data.
HarbourVest’s worst-performing secondaries fund is its 2005-vintage $750 million Dover Street VI fund, which delivered a 5 percent net IRR and a 1.3x TVPI.
All of HarbourVest’s Dover Street funds have outperformed public market benchmarks, the document shows.
The terms of HarbourVest’s latest real assets secondaries fund, which held the final close on Friday, were also disclosed in the document. Real Assets Fund III has an investment period of two to four years and an average annual management fee of 75 basis points on committed capital. The carried interest is 10 percent, after generating a 7 percent limited partner preferred return.
Fund III, which closed below its initial $500 million target on $366 million on Thursday, as Secondaries Investor reported, will focus on multiple real-asset sub-sectors, including energy, power, infrastructure and natural resources, the document shows. Secondaries investments will include a mix of traditional and complex transactions, and up to 20 percent has been allocated to real asset primaries and direct co-investments.
HarbourVest has more than 400 employees across Asia, Europe and the Americas. It has more than $40 billion in assets under management.