HVPE Commits $125m to Separately Managed Account
HarbourVest Global Private Equity (HVPE), the FTSE 250-listed investment vehicle with broad exposure to private markets, has signed a Limited Partnership Agreement with HarbourVest Partners to formalise its transition to a Separately Managed Account (SMA) structure. The move marks a pivotal step in the company’s evolution toward a more flexible and transparent investment model.
Under the terms of the agreement, HVPE has committed $125 million to the SMA, which will operate alongside its existing portfolio and is designed to offer greater control over capital deployment, liquidity management, and exposure to underlying fund-level debt.
Below is a video which explains the structure and USP’s behind HarbourVest Global Private Equity proposition. This includes interviews with members of HVPE’s board and management team
The initial allocation reflects HVPE’s strategic priorities, with 80 per cent earmarked for primary fund investments and 20 per cent for co-investments. By stage, 70 per cent will target buyouts, while 30 per cent will be directed toward venture and growth capital. Geographically, the portfolio will skew towards North America (60 per cent), followed by Europe (25 per cent) and Asia (15 per cent).
The SMA structure is expected to materially reduce HVPE’s look-through exposure to borrowing at the HarbourVest fund level over the next four years, as legacy funds mature and deleverage. The company also anticipates a decline in unfunded commitments, which should result in more predictable cash flows and a reduced reliance on borrowing at the HVPE level.
“This transition represents a significant milestone in HVPE’s long-term strategy,” the board said in a statement. “The SMA provides enhanced flexibility to manage investment pacing and portfolio composition, while reinforcing our commitment to disciplined capital allocation.”
The move comes amid growing investor demand for transparency and control in private equity structures, particularly as macroeconomic uncertainty and tightening credit conditions place pressure on traditional fund models. HVPE’s adoption of the SMA is seen as a proactive response to these dynamics, positioning the company to better navigate market cycles and deliver sustainable value to shareholders.