Investment Strategy - Secondary
Transaction Types
(click on a transaction type below to see sample case studies)
> Traditional LP Interest
> Synthetic Secondary
> Structured Transaction
> Linked Transaction
| Structured Transaction |
|
|
| Closed |
Q4 2003 |
| Seller |
European Bank |
- Seller needed to eliminate quarterly earnings volatility associated with its private equity portfolio
- A straight sale would have likely required the seller to record a meaningful loss relative to fair value
- Seller wanted to maintain general partner relationships
- Seller was not liquidity constrained
|
|
- A new joint venture vehicle controlled by HarbourVest was formed to acquire the portfolio from the seller, with capital coming from multiple HarbourVest funds as well as the seller
- The seller’s transaction objectives were satisfied through the terms of the joint venture
- Complex cash flow sharing arrangement was central to accomplishing economic goals of HarbourVest
|
|
- Willingness to enter into long-term partnering arrangement with the seller through a joint venture
- Ability to work closely with seller to devise innovative economic terms that met HarbourVest's and seller's objectives
- Resources to transact on a portfolio representing $1.3 billion in original commitments
|
|
