UPDATE: HarbourVest gathers $2bn for latest secondaries vehicle


Global private equity firm HarbourVest Partners is two-thirds of the way to its $3bn target for its latest secondaries vehicle Dover Street VIII.

The firm has received about just under $2bn of commitments from 180 LPs since reporting its first sales 12 months ago according to filings with the US Securities and Exchange Commission, although it is believed to have broken the $2bn barrier since.

Those LPs are understood to include the Nebraska Investment Council and Montana Board of Investments.

Dover Street VIII LP has gathered almost $1.9bn in total from LPs, including $1.2bn from offshore feeder vehicle Dover Street VIII Cayman Fund.

A spokeswoman for HarbourVest said she could not comment on fundraising activity.

An investor document published by the Imperial County Employees’ Retirement System shows the fund has a ten-year commitment period, with four one-year extensions possible, a preferred return of eight per cent and carried interest of 12.5 per cent beyond that point.

The document describes the fund as targeting global secondary investments in venture capital, buyout, and other private equity assets, but it is thought the fund will mainly focus on the US market.

Dover Street VIII will become the firm’s biggest-ever secondaries fund if it hits target, slightly outstripping the $2.9bn raised for Dover Street VII in 2008.

That fund was running at a net IRR of 20.1 per cent at the end of March according to the investor document, representing a cash multiple of 1.4 times, and was about 85 per cent invested.

The $620m Dover Street VI fund from 2006 was running at a net IRR of 5.9 per cent and cash multiple of 1.3 times.

Dover Street V, which gathered $515m of commitments in 2002, was running at a net IRR of 19.9 per cent and 1.6 times cash multiple.

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