HarbourVest Partners Announces Close of Latest Credit Fund
27 May 2021
Credit Opportunities Fund II closes oversubscribed and above target at $833 million
BOSTON – HarbourVest Partners, a global private markets asset manager, today announced the final close of its Credit Opportunities Fund II (COF II) at $833 million, including the General Partner commitment. The Fund was oversubscribed and closed above the target size of $600 million. The Fund’s predecessor closed at $375 million in 2017.
“We are pleased to mark the close of our latest credit fund and are grateful for the strong support of our limited partners,” said Peter Lipson, Managing Director, HarbourVest. ”In an environment where investors are searching for consistent yield, the fund’s cash flow profile combined with the opportunity for a meaningful money multiple resonated with investors.”
The fund’s strategy targets junior credit investments complemented by equity co-investments, providing investors with downside protection through credit exposure and opportunistic upside through equity exposure. This approach enables investors to access private equity sponsor-backed middle-market companies, predominantly in North America.
“HarbourVest has been investing in credit since 2003, committing over $1.4 billion* to assets across the private credit market,” continued Lipson. “As lead sponsors are increasingly likely to allocate credit securities to sophisticated limited partners, our team’s platform approach and dedicated credit expertise has helped drive a healthy pipeline of opportunities for our credit team to assess.”
The Fund was supported by limited partners in North America, Australia, Asia, Europe, and Latin America including public and private pension funds, insurance companies, endowments, family offices, and ultra-high net worth private sector investors. This includes a high re-up rate from existing investors, as well as a number of new investors, more than doubling the investor base.
*As of March 31, 2021. Committed amount reflects all private credit commitments made by HarbourVest for a fund or account since 2003, net of leverage.
HarbourVest is an independent, global private markets investment specialist with over 35 years of experience and more than $76 billion in assets under management, as of March 31, 2021. The Firm’s powerful global platform offers clients investment opportunities in private equity, private credit and real assets through primary fund investments, secondary investments, and direct co-investments, in commingled funds or separately managed accounts. HarbourVest has more than 700 employees, including more than 150 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $46 billion to newly-formed funds, completed over $29 billion in secondary purchases, and invested over $21 billion directly in operating companies. Partnering with HarbourVest, clients have access to customized solutions, longstanding relationships, and actionable insights.
Nothing herein should be construed as a solicitation, offer, recommendation, representation of suitability, legal advice, tax advice, or endorsement of any security or investment and should not be relied upon by you in evaluating the merits of investing in HarbourVest funds or in any other investment decision. Information about the fund is not representative of any other HarbourVest fund or investment product.