HVPE commits $200m to HarbourVest FoFs

The listed fund of funds committed to two HarbourVest funds with secondaries exposure last month.

HarbourVest Private Equity Limited (HVPE) committed to two HarbourVest fund of funds in March, according to a statement.

HVPE is HarbourVest Partners’ listed fund of funds. It invests in and alongside HarbourVest-managed funds, providing investors with a long-term capital appreciation by investing through a diversified private equity portfolio.

Last month it committed $100 million to HarbourVest X Venture, which will invest in US venture and growth equity funds, as well as secondaries investments and direct co-investments. The target of Fund X Venture is unknown, but its predecessor is a 2010-vintage that raised $1.15 billion, according to PEI’s Research and Analytics division.

HVPE also committed $100 million to HarbourVest X Buyout, which according to the statement will focus on building a portfolio of US buyout funds, complemented by secondaries and direct co-investments. Fund X Buyout launched earlier this year, its predecessor raised $1.4 billion, PEI data disclosed.

During the month HVPE also invested $31.3 million in several fund of funds and a global secondaries fund. The manager of the secondaries fund is unknown and a spokesperson from HVPE declined to comment.

As of 31 March HVPE’s net asset value per share is $15.95, which is a 0.9 percent increase from its NAV of $15.80 as of 28 February.

HVPE is gearing up to move to the Main Market of the London Stock Exchange in September. It’s currently listed on the Specialist Fund Market, but the Main Market will give HarbourVest exposure to a significantly wider investor base.

HarbourVest associate director Richard Hickman told Secondaries Investor retail investors are very interested in private equity exposure, including secondaries, which make up about 35 percent of HVPE’s portfolio.

“They’re interested in our strategy because of HVPE’s track record of acquiring two other listed private equity funds,” he said.

In 2011 HVPE invested alongside HarbourVest’s Dover Street VII to acquire Swiss-listed Absolute Private Equity for more than $800 million. The following year, HVPE and Dover Street VII bought Conversus Capital’s portfolio of private equity fund interests and direct investments for $1.4 billion.