Federated Hermes closes its fifth Private Equity fund PEC V

Federated Hermes completed the final close of its fifth flagship Private Equity Co-Investment Fund (PEC V) at $486 million in total commitments, according to Citywire reporting and company disclosure. The fund exceeded its original fundraising target despite operating in a challenging macroeconomic environment and constrained fundraising climate. PEC V achieved its initial close at $400 million in December 2021 before reaching its final target approximately 18 months later.

The fund's investor base reflected broad institutional support across multiple geographies. Existing co-investment series investors including Local Pensions Partnership Investments and Hostplus were joined by new capital sources from Europe and Korea, notably Samsung Life Insurance, signaling geographic diversification and fresh institutional demand for the strategy. By mid-2023, PEC V had committed capital to 23 investments with an additional seven deals in approved pipeline status, demonstrating active deal sourcing and execution capabilities during the fund's investment period.

Peter Gale, Chief Investment Officer and Head of Private Equity at Federated Hermes Global Private Equity (GPE), attributed the fund's oversubscription to investor appetite for differentiated co-investment opportunities. Federated Hermes GPE supports this track record claim with a 22-year operating history in co-investments, having committed $4.5 billion across 278 transactions globally as of March 2023. The firm's focus remains on lower mid-market buyouts, with PEC V achieving a median entry enterprise value of $144 million, a segment characterized by inefficient pricing, attractive valuations, and substantial exit optionality.

The successful PEC V close catalyzed immediate fundraising momentum for the sixth vintage (PEC VI), which launched with $320 million in initial commitments during its first fundraising phase. Returning investors from Australia's superannuation sector and South Korean institutional investors—including a major pension fund and top-tier insurance company—participated in the initial close, alongside new entrants such as Italy's first pension fund investor in the series. Additional closes for PEC VI are expected throughout 2026, underscoring sustained institutional confidence in Federated Hermes' co-investment platform.