HarbourVest Closes New Credit Fund

HarbourVest Partners has held a final close of Credit Opportunities Fund II LP (COF II) with $833 million of capital. The new fund was oversubscribed and closed above its target of $600 million.

COF II was supported by numerous worldwide institutional limited partners including public and private pension funds, insurance companies, endowments, family offices, and ultra-high net worth individuals.

HarbourVest’s earlier credit fund, Credit Opportunities Fund I LP (COF I), closed with $375 million of capital in 2017. Many of the limited partners in COF II re-upped their investments from COF I and the new fund added many new limited partners that more than doubled its investor base.

“We are pleased to mark the close of our latest credit fund and are grateful for the strong support of our limited partners,” said Peter Lipson, a managing director at HarbourVest. “In an environment where investors are searching for consistent yield, the fund’s cash flow profile combined with the opportunity for a meaningful money multiple resonated with investors.”

COF II makes junior credit investments and equity co-investments in private equity-backed middle-market companies headquartered in North America.

“HarbourVest has been investing in credit since 2003, committing over $1.4 billion to assets across the private credit market,” added Mr. Lipson. “As lead sponsors are increasingly likely to allocate credit securities to sophisticated limited partners, our team’s platform approach and dedicated credit expertise have helped drive a healthy pipeline of opportunities for our credit team to assess.”

HarbourVest has more than 700 employees, including more than 150 investment professionals across Asia, Europe, and the Americas. As of March 2021, the firm had $76 billion in assets under management across a range of strategies including venture capital, buyout, mezzanine debt, credit, and real estate. HarbourVest has offices in Beijing, Bogotá, Boston, Dublin, Hong Kong, London, Seoul, Tel Aviv, Tokyo, and Toronto.

© 2021 Private Equity Professional | June 3, 2021