HarbourVest Companions has expanded its credit score secondaries platform with the formation of a devoted funding workforce.
The workforce can be led by Greg Ciesielski from the agency’s secondaries workforce, and Sean Gillespie from the credit score workforce.
The $146bn (£109bn) non-public markets asset supervisor mentioned that the growth displays its rising concentrate on the non-public credit score secondaries market, which it sees as one of many quickest rising however nonetheless undercapitalised segments of personal markets.
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It cited analysis that confirmed that the worldwide non-public credit score market surpassed $1.6tn in 2024, but solely $6.8bn of world secondaries dry powder is presently allotted to credit score transactions.
It mentioned that growing demand from restricted companions (LPs) and common companions (GPs) for extra flexibility options was additionally driving progress, with credit score secondary volumes rising from $3bn in 2020 to $10bn in 2024.
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“We imagine credit score secondaries can be one of many fastest-growing segments of the secondaries market over the following a number of years,” mentioned John M. Toomey Jr., chief government of HarbourVest Companions.
“Our multi-manager funding strategy, which gives entry to high quality deal-flow from our greater than 600 energetic GP relationships, has allowed us to scale our equities secondaries enterprise to change into one of many largest on the earth. Our platform brings collectively a long time of secondaries expertise with deep credit score underwriting capabilities in each direct and first commitments, which we imagine positions HarbourVest to be a most well-liked capital supplier at scale within the credit score secondaries market.”
HarvourVest mentioned that the brand new workforce will lead the agency’s world credit score secondaries technique, drawing on its place because the third largest fairness secondaries supervisor on the earth and 4 a long time of expertise in secondaries.
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The technique will span each LP- and GP-led transactions and combine with HarbourVest’s broader credit score platform, which incorporates major, direct and secondary alternatives.
“Credit score secondaries supply traders differentiation in how one can entry revenue, draw back safety and seasoned portfolios,” mentioned Ciesielski. “The demand is robust and our capability to entry capital at scale and underwrite portfolios gives a compelling worth proposition for traders.”
