News & Analysis

HarbourVest raises $2.9bn

The Boston-based fund of funds and secondaries firm has held a final close on Dover Street VII, the global secondaries fund that earlier this year backed Lehman Brothers’ venture spin out.

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Boston-based private equity firm HarbourVest Partners has closed Dover Street VII, a global secondaries fund, on its $2.9 billion hard-cap. The fund, which has been making investments since December 2007, was over-subscribed, according to the firm. Its initial target was $2 billion.

Dover VII makes secondary investments in venture capital, leveraged buyout, and other private equity assets, as well as portfolios of operating companies.

Earlier this year the fund backed the spin out of Lehman Brothers Venture Partners to form Tenaya Capital, an independent entity. As part of the deal Dover Street VII bought out a portion of Lehman’s limited partner interests in Lehman Brothers Venture Partners III, IV and V in what is known as a synthetic secondaries transaction.

Among the 197 institutional investors to commit to the fund were the Arizona Public Safety Personnel Retirement System and the Pennsylvania State Employees’ Retirement System.

HarbourVest’s secondaries programme acquires private equity assets of all stages, types, vintages, and geographies in deals ranging from less than $10 million to more than $1.0 billion.