HarbourVest Global Private Equity invests in new structure

(Alliance News) - HarbourVest Global Private Equity Ltd on Tuesday said it has made an initial USD125 million commitment to its new structure, as it struck an agreement with HarbourVest Partners for its new separately managed account.

The London-based investment fund with interest in various sectors including technology, infrastructure and energy said the signing is a "significant milestone" in its transition to a new investment model and commitment to building a global private equity portfolio.

The USD125 million commitment will be split between an 80% primary strategy and 20% co-investment. 70% will be used at the buyout stage with 30% in venture and growth.

The investment will be split between 60% in North America, 25% in Europe and 15% in Asia.

HarbourVest said the adoption of the SMA structure is a "key component" of its strategy to "maximise shareholder value and enhance portfolio flexibility".

By investing through the SMA, HVPE said its look-through exposure to borrowing at the HarbourVest fund level is expected to fall rapidly over the next four years.

It said the pipeline of unfunded commitments to HarbourVest funds will fall, leading to more predictable cash flows.

"The board believes that these enhancements will position HVPE to deliver sustainable value for shareholders, while maintaining the company's disciplined approach to private equity investing," the company said.

Shares in HarbourVest Global Private Equity were down 0.3% at 2,751.10 pence in London on Tuesday morning.

By Michael Hennessey, Alliance News reporter

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