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HarbourVest raises $1.7bn for non-US fund of funds

The fund is targeting primary fund investments, secondaries and direct co-investments in Europe, Asia and emerging markets.

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HarbourVest Partners has raised $1.7 billion to be deployed outside the US.

The HIPEP VIII Partnership fund of funds will target primary fund investments, secondaries and direct co-investments in Europe, Asia and other emerging markets, according to a statement. It launched in December 2016 with a $1 billion target, according to PEI data.

HIPEP VIII began investing capital in May and is already 29 percent committed, the statement noted.

The fund has 40 investors from countries including Germany, Japan, the UK and the US. These include Chicago Teachers’ Pension Fund which committed $10 million, Dorset County Pension Fund which committed $25 million and New Hampshire Retirement System which committed $50 million, according to PEI data.

“This latest fundraise shows the demand from existing and new investors for global, ex-US private equity,” said managing director Carolina Espinal. “Our thematic strategy resonated with investors targeting the region due to the flexibility of access to value and growth opportunities and a diversified cashflow profile.”

HarbourVest’s last dedicated secondaries fund Dover Street IX held its final close on $4.8 billion in November 2016, exceeding its target by more than $1 billion. The fund had been in the market for 15 months.

Last April the firm raised $366 million for a real assets secondaries fund. Real Assets Fund III acquires stakes in energy, power, infrastructure and natural resources funds. In January it bought a stake in the 2006-vintage, €4.64-billion Macquarie European Infrastructure Fund II.