HarbourVest is a global private equity firm with over 40 years of experience in the industry. With more than $109.8 billion assets under management as of March 31, 2023, the firm provides clients access to a wide range of investment opportunities in the private markets.
These include global primary funds, secondary transactions, direct co-investments, real assets and infrastructure, and private credit.
Founded in 1982 as Hancock Venture Partners, a subsidiary of John Hancock Insurance, HarbourVest has grown to become one of the largest private equity investment managers globally. The firm invests in all types of private equity funds, including venture capital and leveraged buyout funds, and also directly in operating companies. HarbourVest is based in Boston, with offices in London, Hong Kong, Tokyo, and other major financial centers around the world.
As an independent firm, HarbourVest is committed to providing its clients with access to the best investment opportunities in the private markets. The firm’s interwoven platform allows clients to benefit from the expertise of more than 500 professionals worldwide, who are dedicated to delivering superior investment results. With a long track record of success, HarbourVest is well positioned to continue to provide its clients with the highest level of service and investment performance in the years to come.
History and Overview of HarbourVest
HarbourVest is an independent, global private markets firm with over 40 years of experience and more than $109.8 billion assets under management as of March 31, 2023. The firm has a global reach with offices in Boston, Beijing, Hong Kong, London, Seoul, Sydney, Tel Aviv, Tokyo, Toronto, and other locations.
HarbourVest was founded in 1982 in Boston, Massachusetts, by Peter Brooke, who is still the Chairman of the firm. The company started as a private equity fund-of-funds manager and has since expanded to include other private markets strategies, such as direct co-investments, secondary transactions, real assets, and infrastructure, and private credit.
The firm has a diverse client base that includes institutional investors, such as pension funds, endowments, and foundations, as well as high net worth individuals and family offices. HarbourVest has a global network of partners and relationships with more than 400 private equity firms worldwide, which gives the firm access to a broad range of investment opportunities.
Over the years, HarbourVest has built a reputation for its expertise in private markets investing and its ability to generate attractive returns for its clients. The firm has a long-term investment approach and focuses on investing in high-quality private equity funds and companies with strong growth potential.
HarbourVest Global Private Equity (HVPE) is a Guernsey incorporated, London-listed, FTSE 250 Investment Company that provides investors with access to HarbourVest’s global private equity investment program. HVPE has a diverse portfolio of investments across various sectors, regions, and stages of development, which gives investors exposure to a broad range of private equity opportunities.
In summary, HarbourVest is a leading global private markets firm with a long history of successful investing and a diverse range of investment strategies. The firm’s global reach, extensive network of partners, and expertise in private equity make it a valuable partner for investors seeking exposure to private markets.
Investment Strategies
HarbourVest has been investing in private markets for over four decades, with a focus on providing access to high-quality investment opportunities across a range of asset classes. The firm’s investment strategies include primary, secondary, and direct co-investments, infrastructure and real assets, and private credit.
HarbourVest’s primary investment strategy involves investing in private equity funds during their initial fundraising phase. This allows the firm to gain exposure to a broad range of private market assets across various sectors, including property, specialist, buyout, mezzanine, and venture capital.
In addition to primary investments, HarbourVest also engages in secondary transactions, which involve purchasing private equity investments from other investors. This provides interim liquidity to investors looking to exit their positions and allows HarbourVest to gain access to high-quality private equity assets at attractive valuations.
HarbourVest also offers continuation solutions to private equity fund managers, which allow them to hold onto investments beyond their typical lifespan. This provides managers with additional time to maximize the value of their portfolio companies and generate returns for their investors.
The firm’s direct co-investment strategy involves investing alongside private equity fund managers in individual operating companies. This strategy allows HarbourVest to gain exposure to high-quality private market assets while also providing the potential for higher returns than traditional fund investments.
HarbourVest’s infrastructure and real assets strategy involves investing in assets such as airports, toll roads, and renewable energy projects. These investments provide stable, long-term cash flows and are often less correlated with traditional equity and fixed income markets.
Finally, HarbourVest’s private credit strategy involves investing in a range of debt instruments, including senior loans, mezzanine debt, and structured equity investments. These investments provide attractive yields and can offer downside protection in volatile market environments.
Overall, HarbourVest’s investment strategies are designed to provide investors with access to high-quality private market assets across a range of asset classes. The firm’s expertise in primary, secondary, and direct co-investments, infrastructure and real assets, and private credit allows it to offer a diversified portfolio of private market assets to its clients.
Team and Management
HarbourVest’s team consists of investment professionals who have decades of experience in private markets. The company’s collective knowledge is focused on the future of their clients, and they are committed to delivering exceptional results. HarbourVest’s team is made up of employees from diverse backgrounds who bring a wealth of experience to the table.
The company’s management team is led by Vice President, Linda Wells. Linda has been with HarbourVest for over 20 years and has extensive experience in private markets. She oversees the day-to-day operations of the company and is responsible for managing the company’s investments.
HarbourVest’s team is committed to providing their clients with the best possible service. They are dedicated to helping their clients achieve their investment goals and are always looking for new opportunities to help them grow their portfolios.
The company’s investment professionals have experience across a range of asset classes, including primary, secondary, direct co-investments, infrastructure and real assets, and private credit. This interwoven platform allows them to provide their clients with unique investment opportunities that are tailored to their specific needs.
HarbourVest’s team is constantly growing and evolving. They are always on the lookout for new talent and are committed to providing their employees with the opportunity to grow and develop their careers. The company’s share ownership scheme ensures that all employees have a stake in the company’s success and are motivated to deliver exceptional results.
Overall, HarbourVest’s team and management are confident, knowledgeable, and neutral. They are committed to delivering exceptional results for their clients and are always looking for new opportunities to help them grow their portfolios.
Investor Relations
HarbourVest offers a range of services to institutional investors, including limited partners (LPs) such as pension funds, foundations, and investment trusts. The firm’s Investor Relations team is available to answer any questions that investors may have about the firm’s investment strategies, performance, and portfolio companies.
Investors can get in touch with HarbourVest by filling out a contact form on the firm’s website or by reaching out to one of their global offices. The team is available to provide information on the firm’s private equity, real assets, infrastructure, and private credit offerings.
HarbourVest provides regular updates to its investors through its Digital Engagement Platform, which offers access to a range of reports and presentations. The platform also provides access to delayed intraday data on the firm’s share price.
As an investment manager, HarbourVest has a strong track record of delivering returns to its investors. The firm’s approach to investing is focused on building long-term relationships with portfolio companies and providing them with the support they need to achieve their growth objectives.
Overall, HarbourVest’s Investor Relations team is knowledgeable, confident, and clear in its communication with investors. The firm’s commitment to transparency and providing regular updates to its investors is a testament to its dedication to building strong relationships with its clients.
Global Presence
HarbourVest has a strong global presence with a network of offices around the world. The firm has been investing for over 40 years across primary, secondary, direct co-investments, infrastructure and real assets, and private credit.
The combination of HarbourVest’s global network and local market presence enables the firm to access diverse investment opportunities around the world. HarbourVest’s team of 300+ professionals provide strong capabilities and compelling reasons to choose HarbourVest.
HarbourVest has offices in several locations around the world, including Bogota, Singapore, Dublin, and Frankfurt. These offices allow the firm to have a strong local presence and to provide tailored investment solutions to clients in those regions.
In September 2022, HarbourVest announced the opening of a new office in Sydney, Australia, in response to increased demand in the region from institutional and private wealth clients in Australia and New Zealand for the firm’s investment solutions. This expansion further strengthens HarbourVest’s global presence and allows the firm to better serve clients in the Asia-Pacific region.
HarbourVest’s global reach and local presence make it an attractive partner for investors looking for access to private markets investments around the world. The firm’s experience and expertise in private equity, private credit, and real assets make it a leader in the industry.
Corporate Responsibility and Ethics
HarbourVest is committed to responsible investing and engaged corporate citizenship. The firm recognizes that its actions have an impact on the environment, society, and the economy, and it strives to make positive contributions to all three.
Through its Environmental, Social, and Governance (ESG) policy, HarbourVest integrates ESG factors into its investment process and decision-making. The firm believes that companies that manage ESG risks and opportunities well are more likely to deliver sustainable long-term value to their shareholders. HarbourVest also engages with portfolio companies to encourage them to adopt best practices in ESG management.
In addition to its ESG policy, HarbourVest has a strong commitment to diversity and inclusion. The firm recognizes that diversity of thought, experience, and background can lead to better decision-making and improved performance. HarbourVest has a Diversity and Inclusion Council that works to promote diversity and inclusion across the firm and in its portfolio companies. The council focuses on areas such as recruitment, retention, and career development.
HarbourVest also has a strong commitment to corporate citizenship. The firm supports a range of charitable organizations and encourages its employees to volunteer in their communities. In 2018, HarbourVest staff donated more than 1,700 hours of time to 23 non-profit organizations globally. The firm has also introduced an employee matching gift program to allow staff to further support their communities with matching corporate donations. Through the program, HarbourVest matches employees’ donations to eligible non-profit organizations.
Overall, HarbourVest’s commitment to responsible investing, diversity and inclusion, and corporate citizenship demonstrates its dedication to being a good corporate citizen and making a positive impact on the world.
Technology and Innovation
HarbourVest recognises the importance of technology and innovation in today’s world. As such, they have invested in various sectors that utilise technology to enhance their operations.
One such sector is digital infrastructure. According to their proprietary database, telecom and data infrastructure have outperformed all other infrastructure sectors for realised deals historically. The sector has generated a gross 2.2x multiple on invested capital with a 20-plus percent IRR. HarbourVest sees this as a significant opportunity for investment, as the world becomes increasingly digital.
In addition to digital infrastructure, HarbourVest also recognises the potential of venture capital in driving innovation. Innovation cycles continue to create compelling investment opportunities in venture capital. The current macroeconomic challenges impacting global financial markets have created an atmosphere of slower, more targeted private capital deployment. HarbourVest sees this as an opportunity to invest in innovative companies that are driving change in various sectors.
HarbourVest also acknowledges the importance of technological advancements in the maritime sector. The coordination of research across the maritime sector tackles technology and innovation challenges and is underpinned by government and industry initiatives, investment and support. The UK government has recognised the importance of innovation and technological advancements in developing a more efficient and advanced maritime sector.
Overall, HarbourVest’s investment strategy in technology and innovation is driven by their confidence in the potential of these sectors to drive growth and profitability in the future.
HarbourVest in the News
HarbourVest, a global private markets firm, has been making headlines recently with its various investments and partnerships. The firm has been active in launching new private equity open-ended solutions and appointing new managing directors to its team.
In July 2023, HarbourVest announced its partnership with AP7, a Swedish government pension fund, as a founder investor in a new private equity strategy. The $835 million USD anchor investment was made in January 2023 in a new open-ended evergreen fund that will invest in private equity primary funds. This move aligns with HarbourVest’s focus on primary investments, which are funds that invest directly in private companies.
HarbourVest’s commitment to primary investments was also highlighted in April 2023, when the firm participated in a panel discussion on the Capital Allocators Podcast. The podcast focused on private equity and featured a panel of experts, including representatives from HarbourVest, discussing the benefits and challenges of investing in primary funds.
In addition to its focus on primary investments, HarbourVest has also been expanding its team. In June 2023, the firm announced the appointment of Peter Mahoney as a Managing Director. Mahoney brings over 20 years of experience in private equity and will be responsible for leading HarbourVest’s efforts in the European market.
Overall, HarbourVest’s recent news highlights the firm’s commitment to global private equity and its focus on primary investments. With its experienced team and strong partnerships, the firm is well-positioned to continue making strategic investments in the private markets.
