HarbourVest Closes Dover Street VIII Secondary Fund at $3.6 Billion
10 July 2013
– Fund was oversubscribed and closed above target size due to strong investor interest
– Initial investment portfolio includes interest in HarbourVest’ s purchase of Conversus Capital assets
– Fund has already made first distribution
HarbourVest Partners, LLC (“HarbourVest” or the “Firm”), a leading private markets investment firm, today announced the final close of Dover Street VIII L.P. (“Dover VIII”), a global secondary fund, at $3.6 billion. The fund closed above its $3.0 billion target and was oversubscribed. HarbourVest’s prior secondary-focused fund, Dover Street VII, was a $2.9 billion fund.
Dover VIII will make secondary investments in venture capital, leveraged buyout, and other private equity assets, as well as portfolios of operating companies, manager spin-outs, and structured transactions. The investors in Dover VIII include a broad array of institutions such as corporate pensions, public pensions, endowments, Taft Hartley plans, and foundations from around the globe.
Throughout its 27-year history as an active participant in the secondary market, HarbourVest has acquired private equity assets of all stages, types, vintages, and geographies and worked with all types of sellers, including financial institutions, corporations, pension plans, governmental entities, endowments, and family offices.
“Since our first secondary investment in 1986, HarbourVest has helped pioneer the global secondary market,” said Brett Gordon, Managing Director at HarbourVest Partners, LLC. “A critical component of our success is our ability to leverage HarbourVest’s platform of relationships with fund managers across the private markets which give us informed insight into the secondary assets we evaluate. We use this unique perspective to identify attractive assets that offer compelling investment opportunities for our clients. Our team also brings proven experience solving complex problems and creating tailor-made solutions for sellers. This credibility often makes us a preferred counterparty for sellers.”
Dover VIII has already closed on four transactions, the largest of which is the acquisition of the assets of Conversus Capital. At the time of acquisition, Conversus was the world’s largest publicly-traded portfolio of third party private equity funds. The Conversus transaction was announced in July 2012 and completed in December 2012. Dover VIII portfolio has already generated gains as well as early realizations, which have allowed HarbourVest to make an initial distribution to the fund’s investors.
As evidenced with the Conversus transaction, the 2011 take private of Absolute Private Equity and the completion of 45 secondary direct transactions, HarbourVest’ s secondary team is a market leader in providing innovative liquidity solutions. In addition to being one of the most experienced buyers of traditional limited partnership interests, its success in executing non-traditional transactions has enabled HarbourVest to build differentiated portfolios.
Notes to Editors:
HarbourVest is also available to speak about additional topics related to the secondary market such as:
– Current level of deal activity in the secondary market
– Sources of secondary deal flow in 2013
– Continued importance of unique transactions in the secondary market
HarbourVest Partners, LLC is an independent global alternative investment firm and an SEC-registered investment adviser. HarbourVest provides investment programs for institutional investors to invest in venture capital, buyout, mezzanine debt, and distressed debt through primary partnerships, secondary purchases, and direct investments. HarbourVest and its subsidiaries have more than 250 employees, including nearly 80 investment professionals deployed in Boston, London, Hong Kong, Tokyo, Bogotá, and Beijing. In more than 30 years of investing in private equity, the team has committed more than $25 billion to newly-formed funds, completed over $9 billion in secondary purchases, and invested $4 billion directly in operating companies. The firm’s clients consist of more than 300 active institutional investors, including pension funds, endowments, foundations, and financial institutions throughout the U.S., Canada, Europe, Australia, Latin America, and Japan.
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