HarbourVest snaps up Bank of America’s fund-of-funds manager

Speaking to unquote", a source familiar with the situation explained that the takeover was the result of mutual contacts between HarbourVest and BAML. The bank was keen on a new owner to introduce changes in its fund-of-funds arm, while the sold entity's investment team was looking for a new base of operations, the same source added.

Having begun less than a year ago, the negotiations for the asset are understood to have been exclusive, with no other suitors competing with HarbourVest for BAML's fund-of-funds arm.

The carved-out division's offer was deemed complementary to HarbourVest's own, unquote" understands. Since being set up 13 years ago, BAML Capital Access Funds has overseen $1.9bn in commitments towards funds led by emerging, female or minority managers, as well as vehicles focusing on under-served segments. In addition, it claims to have been the first fund-of-funds manager to have monitored and disclosed the social impact associated with its investments.

As part of the agreement, Craig Fowler, Matt HoganBruen, Edward J Powers and Sanjiv K Shah, who are managing directors of the fund-of-funds arm, will all come on board HarbourVest. The executives will be joined by vice-presidents Matthew Autrey and Brook Critchfield.

Although BAML Capital Access Funds has since inception backed only US funds, HarbourVest does not rule out leveraging the unit's niche expertise to enter the European market, unquote" understands.

HarbourVest's purchase comes as part of its Horizon strategy, a scheme set up by the fund-of-funds outfit this year to target traditionally overlooked investment areas and managers. The firm was one of the three managers to feature in an unquote" outlook on the challenges facing funds-of-funds in modern private equity.

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• Topics
• Fund-of-funds
• HarbourVest
• Diversity