Hermes closes co-investment fund on $480m

The fund closed short of its hard cap of €500m, but above its target of €450m. Due to the short lifespan of the fund, Hermes stated it closed its fund while still in demand.

The lifespan of the fund is eight years, with a two-year investment period. Around 30-40% of the fund will consist of co-investments.

According to Hermes, the fund has created an "LP-friendly" fee model for LPs who already conduct direct investments.

Hermes currently has around $3.4bn in assets under management and has invested $1.6bn in 107 co-investments globally. The fund team is made up of 15 investment professionals and 15 financial and support staff.

Investors
Hermes stated that seven large pension funds have committed to PEC II, including the State Teachers Retirement System of Ohio and the London Pension Fund Authority.

The fund completed a first close in February 2014 with a cornerstone investment from the BT Pension Scheme.

Investments
The fund has already committed $230m to 19 mid-market investments in the US and EMEA regions, beginning in 2013. It will complete around 30 deals by the middle of 2015.

The initial 13 investments were a seed portfolio brought over into PEC II to convince LPs to invest, according to Hermes.

Europe and the US will each see approximately 20-40% of the fund's commitments, while emerging markets will be allocated 30% and Asia will receive 15-20% of commitments.

People
Peter Gale is head of private equity at Hermes GPE, while Simon Moss is head of Europe.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland
• Buyout
• Hermes GPE
• Co-investments