Hermes GPE Raises c$620M for Global Co-investment Platform
Hermes GPE, a leading specialist investor in global private equity, today announces that it has successfully raised c$620m for its co-investment platform.
The Hermes GPE PEC III Co-Investment Fund LP (‘PEC III’) has exceeded its $300m target fund size with total commitments of $389m raised from a club of global pension funds, professional investors and asset managers. This group includes the State Teachers Retirement System of Ohio, a leading US public sector retirement system, the Local Pensions Partnership, a collaboration between Lancashire County Pension Fund and London Pensions Fund Authority, Canada Pension Plan Investment Board, the global investment management organisation that invests the assets of the Canada Pension Plan,Hostplus, one of Australia’s largest superannuation funds, Ardian, Continental Europe’s leading private investment company, and a number of other UK and Continental European investors.
An additional $230m has been committed for sidecar and segregated co-investment mandates by longstanding Hermes GPE clients. These mandates will either invest alongside PEC III, or in separate co-investment and alternative strategies.
The club concept brings together like-minded investors who contribute deal flow from their own private equity relationships alongside opportunities sourced from Hermes GPE’s own extensive global network of GP relationships. PEC III has so far committed $200m to 30 sectorally diverse, mid-market and growth investments globally. The Fund follows a thematic investment strategy, seeking to identify companies in niche markets or geographies where the growth potential does not hinge on the wider macroeconomic cycle.
The Fund is managed by Hermes GPE which has a 16 year track record in private equity co-investment. The firm was one of the earliest adopters of using co-investments as an integral part of private equity portfolio construction, which it began implementing in 2001. The team has deployed c$2.5bn in 168 co-investment opportunities worldwide, with PEC II, the predecessor club fund, generating net returns of c23% IRR and a TVPI of 1.6x, comfortably outperforming vintage top quartile benchmarks at 30 June 2017.
Source: Hermes GPE press release