Hermes GPE has raised $603.5m to close its latest co-investment fund, PEC IV, on alongside a $1bn commitment for a new private equity mandate from the BT Pension Scheme.
The fund, which was launched just over a year ago, was initially targeting $350m with a $450m hard cap.
The firm will focus on growth-oriented companies operating in ‘structural investment themes’ unaffected by the economic cycle, Hermes GPE said in a statement.
Hermes GPE has already tapped the fund to deploy around $220m across 24 investments.
PEC IV secured capital commitments from institutional investors such as BT Pension Scheme, State Teachers Retirement System of Ohio, the Local Pensions Partnership, CPP Investment Board, Hostplus, Ardian, Korea Teachers Credit Union, SeAH Group of Korea and Decalia Asset Management.
BTPS made a $1bn allocation for a new private equity mandate which will be invested over three years and split between co-investments and funds.
Hermes also secured a further $100m for a co-investment sidecar mandate from another existing LP.
Hermes GPE head of private equity Peter Gale said, “Raising the latest iteration of our co-investment Club concept well above target, as well as expanding its geographical reach via the addition of new Korean investors, significantly strengthens our co-investment capabilities.
“Our investment strategy is guided by a thematic overlay, with a particular focus on ‘people, planet, productivity’ isolating structural growth themes which are uncorrelated with the economic cycle.
“This enables the creation of consistent and sustainable ‘alpha’ independent of market cycles. We seek to partner with exciting, ambitious, entrepreneurial companies that are disrupting existing business models, and promoting sustainability.”
Hermes has invested more than $3bn in over 200 co-investment deals in the last 19 years.
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