HarbourVest continues busy fundraising year with $890m-plus close of debut direct lending fund


Global investment giant HarbourVest has hauled in more than $890m for the final close of its debut direct lending fund.

The new raise, which came in well above its $600m target, continues a busy fundraising year for the firm, which now manages more than $80bn of assets.

HarbourVest pulled in $2.1bn for its flagship US investment vehicle, HarbourVest Fund XI, in January, and followed that with an $833m final close for its Credit Opportunities Fund II.

HarbourVest managing director John Toomey said, “We are pleased to mark the final close of our inaugural, dedicated direct lending fund, bringing our total capital under management for credit investments to over $3.3bn.

“The past year has demonstrated the resilience of the asset class and reinforced our objective to broaden the reach of HarbourVest’s solutions to help clients invest in rapidly growing strategies.”

The new fund will target senior credit investments in private equity-backed middle-market companies, predominantly in North America.

It will look to build a diversified portfolio including first lien, unitranche, and second lien debt that provides investors with consistent cash yield and strong downside protection.

HarbourVest managing director Karen Simeone said, “HarbourVest’s credit platform differentiates itself in the marketplace through our proprietary sourcing engine, which is driven by the breadth and depth of our primary and secondary partnerships.

“Private credit deal flow continues to accelerate, propelled by increased private equity deal activity and by sponsors increasingly choosing the flexibility and certainty of execution that private financings offer versus the syndicated loan market.”

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