HarbourVest closes co-investment fund at $1billion

Private markets specialist HarbourVest has closed its 2013 Direct Fund LP at $1 billion, above its $750 million target.

According to HarbourVest, the fund’s initial investment portfolio included Digital Insight, which was sold in January 2014 for two times its cost and the fund is 25% invested and has already made its first distribution. The firm’s previous co-investment fund, 2007 Direct, raised $734 million and includes buyout and growth equity investments in the US, Europe and the Asia Pacific region. Like the 2007 fund, the 2013 Direct fund will invest heavily in small and mid-market companies. More than 30 investors are participating in the fund, including pension funds, endowments, and foundations from around the world.

HarbourVest managing director, Rob Wadsworth, said: “A critical component of our success is our direct investment pipeline made up of qualified, actionable opportunities that are often pre-screened by general partners prior to HarbourVest’s review. Our direct co-investment team of more than 20 investment professionals is flexible in providing capital solutions to general partners, and selective in identifying high value opportunities for our investors.”