Key Takeaways
- • HarbourVest Partners closed its HIPEP IX Fund at over $1.6 billion, marking the firm's eighth Europe and Asia Pacific focused vehicle and representing stable fundraising compared to its $1.7 billion predecessor fund HIPEP VIII (closed 2018).
- • The fund targets leading managers across key investment themes in Europe and Asia, with explicit exposure to emerging managers, reflecting HarbourVest's strategy to balance established relationships with next-generation investment opportunities in both regions.
- • HarbourVest has increased its Asia Pacific allocation to 15% of net asset value as of 2021, up from 12% in 2019, supported by regional expansion including a new Singapore office launched in June 2021 and enhanced teams in Hong Kong, Beijing, Seoul, and Tokyo.
- • The firm manages over $86 billion in assets across multiple business lines—$48 billion committed to newly-formed funds, $31 billion in secondary purchases, and $25 billion in direct co-investments—with more than 30 years of European presence and over 25 years of Asia operations representing $29 billion in cumulative commitments.
- • Europe and Asia Pacific regions collectively represented 63% of global GDP and 59% of global economic growth as of September 2021, positioning the fund to capture substantial macroeconomic tailwinds across two of the world's largest economic zones.
Summary
HarbourVest Partners, a US-based private markets asset manager, has successfully closed HIPEP IX Fund at over $1.6 billion, bringing its eighth dedicated Europe and Asia Pacific investment vehicle to completion. The fundraise demonstrates the firm's continued confidence in regional opportunities despite the competitive fundraising environment for alternative asset managers. The fund size represents a modest decline from its predecessor, HIPEP VIII, which closed in 2018 at $1.7 billion—itself 13% larger than the seventh fund raised in August 2015.
The investment strategy combines primary commitments to leading fund managers with secondary transactions and direct co-investments, a diversified approach designed to enhance overall portfolio returns. Till Burges, managing director at HarbourVest, emphasized that the fund targets "leading managers across key investment themes in Europe and Asia, and exposure to the next generation of emerging managers in these regions." This dual focus reflects a deliberate strategy to maintain relationships with established, proven managers while building positions in emerging investment firms positioned to lead future market cycles.
HarbourVest's regional expansion underscores a strategic pivot toward Asia Pacific. The firm launched a new Singapore office in June 2021 under the direction of Hemal Mirani, managing director and head of Asia Pacific operations and strategy. This expansion complements existing operations in Beijing, Seoul, Tokyo, and Hong Kong, establishing a comprehensive regional infrastructure across the world's fastest-growing investment markets. Reflecting this commitment, HarbourVest raised its Asia Pacific allocation to 15% of net asset value by 2021, an increase from 12% in 2019, signaling meaningful capital redeployment toward the region.
The firm's scale and operational capacity support its regional ambitions. As of September 30, 2021, HarbourVest managed over $86 billion in assets under management, with commitments distributed across $48 billion to newly-formed funds, $31 billion in secondary purchases, and $25 billion in direct operating company investments. The firm's 30-year presence in Europe and 25-year track record in Asia, supported by over $29 billion in cumulative commitments across multiple business cycles, positions it as one of the most established and operationally sophisticated fund-of-funds managers in these markets. The economic backdrop—with Europe and Asia Pacific representing 63% of global GDP and 59% of global economic growth as of late 2021—provides substantial addressable opportunity for capital deployment at scale.
The investment strategy combines primary commitments to leading fund managers with secondary transactions and direct co-investments, a diversified approach designed to enhance overall portfolio returns. Till Burges, managing director at HarbourVest, emphasized that the fund targets "leading managers across key investment themes in Europe and Asia, and exposure to the next generation of emerging managers in these regions." This dual focus reflects a deliberate strategy to maintain relationships with established, proven managers while building positions in emerging investment firms positioned to lead future market cycles.
HarbourVest's regional expansion underscores a strategic pivot toward Asia Pacific. The firm launched a new Singapore office in June 2021 under the direction of Hemal Mirani, managing director and head of Asia Pacific operations and strategy. This expansion complements existing operations in Beijing, Seoul, Tokyo, and Hong Kong, establishing a comprehensive regional infrastructure across the world's fastest-growing investment markets. Reflecting this commitment, HarbourVest raised its Asia Pacific allocation to 15% of net asset value by 2021, an increase from 12% in 2019, signaling meaningful capital redeployment toward the region.
The firm's scale and operational capacity support its regional ambitions. As of September 30, 2021, HarbourVest managed over $86 billion in assets under management, with commitments distributed across $48 billion to newly-formed funds, $31 billion in secondary purchases, and $25 billion in direct operating company investments. The firm's 30-year presence in Europe and 25-year track record in Asia, supported by over $29 billion in cumulative commitments across multiple business cycles, positions it as one of the most established and operationally sophisticated fund-of-funds managers in these markets. The economic backdrop—with Europe and Asia Pacific representing 63% of global GDP and 59% of global economic growth as of late 2021—provides substantial addressable opportunity for capital deployment at scale.
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