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HarbourVest completes major secondary funds transaction with UBS

HarbourVest Partners, the global private equity firm, has completed one of the biggest ever secondary fund transactions in conjunction with investment bank UBS. The deal involves structuring the UBS fund portfolio, composed of more than 50 limited partnerships, into a joint venture in which both organisations have an interest.

The transaction enables UBS to divest most of its private equity fund portfolio, which represents more than $1.5bn of original commitments, but at the same time retain a share of any future upside.

Fred Maynard, managing director at HarbourVest, said: ‘HarbourVest is delighted to complete this transaction after considerable efforts by both parties to create a product that offers an alternative to an outright secondary sale or a securitisation.'

UBS has been gradually unwinding its private equity interests, built up rapidly during the late 1990s, over the last eighteen months. Like other banks, it was damaged by the abrupt downturn in the market and the volatility of private equity assets on the balance sheet.

HarbourVest is one of the largest funds of funds and secondaries specialists in the world. It has completed $2.1bn in purchases of secondary partnership interests and committed more than $8.4bn to newly formed funds in its 20 year history.

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