News & Analysis

NHRS has backed HarbourVest's 11th Dover Street secondaries fund.

The asset manager, which has $170bn in alternatives AUM, is revisiting the strategy having last raised a dedicated secondaries fund in 2016.

The sale, valued at around $6bn by net asset value plus unfunded commitments, ranks among the largest to ever trade.

Impacts from the broader economy, such as inflation, geopolitical turmoil and slower growth, have made it tougher to value assets in secondaries processes, with a wide gap between buyer and seller expectations.

Secondaries transactions in the asset class often bring more direct and indirect tax issues than those in private equity, write Macfarlanes' James McCredie and Sarah Shucksmith.

The firm, which is seeking as much as $585m for Keyhaven Secondaries Fund III, also made two hires last November.

The law firm has hired a fund finance specialist to take advantage of asset-backed lending, which has become an increasingly popular alternative to secondaries sales.

Energy and infrastructure secondaries accounted for 6% of the $134bn in deal volume last year, according to Evercore.

The adviser and placement agent sees a growing opportunity in the US lower middle market, particularly in preferred equity.

The firm is replicating its private equity strategy in infrastructure, with its inaugural co-investment and secondaries vehicle.