HarbourVest Partners has completed fundraising for its latest global co-investment vehicle, securing approximately $4.75bn as institutional investors continue to increase allocations to lower-cost private equity strategies, according to a report by the Wall Street Journal.
The Boston-headquartered private markets manager raised around 13% more than its previous co-investment fund, which closed at $4.2bn roughly four years ago. The new fund includes more than $500m dedicated to growth equity investments, allowing investors to gain exposure to minority stakes in high-growth companies across sectors including artificial intelligence and healthcare.
HarbourVest said more than half of the fund has already been deployed, with the existing portfolio helping attract additional investor commitments later in the fundraising process.
The strategy enables limited partners to invest alongside private equity and growth managers in individual transactions, providing access to deals that many investors would be unable to source independently. HarbourVest’s long-standing relationships with hundreds of private market managers globally are a key component of its co-investment platform.
The firm, which managed approximately $161bn in assets at the end of 2025, allows investors to tailor allocations between buyout and growth co-investments or invest through a blended vehicle weighted primarily toward buyout transactions.
HarbourVest expects the fund to participate in up to 80 investments, with commitments of as much as $100m for individual buyout deals and smaller allocations for growth investments. The portfolio is expected to maintain broad diversification across geographies and sectors, with around 60% of capital targeted for North America and the balance allocated across Europe and Asia.
The manager said it continues to take a selective approach to technology investments despite heightened interest in artificial intelligence, noting that rapid market shifts can create both attractive opportunities and valuation risks.
The successful fundraising reflects continued demand for co-investment strategies among institutional investors seeking to reduce the fees associated with traditional private equity fund investing. By investing directly alongside general partners, co-investment vehicles can lower overall management and performance fee costs while providing access to high-quality transactions.
The strategy has also become increasingly important for private equity sponsors facing a more challenging fundraising environment. As fundraising has slowed across the industry, many buyout firms have turned more frequently to co-investors to help finance acquisitions and complete larger transactions.
