News & Events - News
HarbourVest Partners Closes Non-U.S. Fund-of-Funds Above Target at $2.8 Billion
BOSTON — 14 November 2002 — HarbourVest Partners, LLC, one of the world's leading private equity firms, is pleased to announce the final close of HarbourVest Partners International Private Equity Partners IV ("HIPEP IV") at $2.8 billion, exceeding the fund's target of $2.5 billion.HIPEP IV, targeting investments outside the U.S., will seek new partnerships and secondary offerings from a fund-of-funds pool of $2.425 billion. In addition, $375 million will be invested directly in operating companies.
The fund-of-funds program will focus on a diversified portfolio of venture and buyout funds. According to D. Brooks Zug, senior managing director of HarbourVest, the current environment also presents "huge potential for secondary investments."
HarbourVest has been investing HIPEP IV for the past year and a half. Today, 23% of the fund is committed. While HarbourVest's last non-U.S. fund closed in 1998 at $2.1 billion and was fully committed over three years, Zug believes that today's market conditions dictate a more moderate investment pace of four to five years.
"HarbourVest will continue to adhere to its focused investment strategy - HIPEP IV will be a major investor in a select number of high quality fund managers," said Zug.
107 institutional investors committed to the fund. About 50 percent of these are U.S.-based limited partners, while the other half represents investors from Europe and various countries around the world.
About HarbourVest
HarbourVest Partners, LLC is a global private equity firm and registered investment advisor, providing turnkey products for institutional investors wishing to invest in venture capital and buyout markets in the U.S., Europe, and elsewhere through primary partnerships, secondary purchases, and direct investments. HarbourVest has 107 employees, including 46 investment professionals, in Boston, London, and Hong Kong. During its 20-year history of investing, the team has committed $7.4 billion to 200 managers of private equity funds on a primary basis, completed $1.2 billion in 205 purchases of secondary partnership interests, and invested $1.8 directly in operating companies. The firm's clients include more than 200 pension funds, endowments, foundations, and financial institutions from the U.S., Europe, Canada, Australia, and Japan.