Asset management giant Vanguard enters PE market with HarbourVest team-up

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Private equity major HarbourVest Partners is set to help investment manager Vanguard enter the private equity market through a strategic partnership.

The Vanguard Institutional Advisory Services unit will provide the private equity strategy to institutional clients such as pensions, endowments, and foundations.

HarbourVest will use its private market experience to complement Vanguard’s portfolio construction and investment committee governance capabilities, the firm said in a statement.

Pennsylvania-headquartered Vanguard manages $6.2tn in global assets and offers access to 424 funds to more than 30 million investors worldwide.

“Vanguard is a world class asset manager with a commitment to providing their clients with access to private equity,” said HarbourVest managing director John Toomey.

“This partnership is a natural extension of our business and combines our private markets expertise with a firm focused on improving client outcomes.  We look forward to expanding access to private equity to help strengthen returns for qualified investors.”

In January, HarbourVest has raised $2.1bn of capital commitments for the final close of its latest flagship US investment vehicle, HarbourVest Fund XI.

The firm also recently smashed the target of its fifth direct co-investment fund to close on a $3bn hard cap.

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