Hermes raises $620m for co-investments

The vehicle itself is smaller than its predecessor, which closed on $480m in November 2014 following a seven-month fundraise.

A source told unquote" the fund had a hard-cap of $400m and took 18 months to raise. It is understood the fund held a foundation close and three intermediary closes prior to the final close.

However, the firm has also raised an additional $230m for sidecar and segregated co-investment mandates, which will either invest alongside PEC III or in separate co-investment and alternative strategies.

According to unquote" data, PEC II was 76% deployed as of March 2017. Hermes said the fund was generating net returns of around 23% and TVPI of 1.6x as of June 2017.

Investors
PEC III raised commitments from new and existing investors, including international pension funds, professional investors and asset managers. LPs include State Teachers Retirement System of Ohio, Local Pensions Partnership, Canada Pension Plan Investment Board, Hostplus and Ardian, in addition to a number of UK and continental European investors. It is understood that BT Pension Scheme also made a commitment to the new fund.

Investments
The vehicle has a sector-agnostic remit, focusing on mid-market and growth capital investments. PEC III has already committed $200m across 30 different deals, according to a statement.

The investment period will end in March 2019, the source said, though it is anticipated that the vehicle will be fully invested across 40-45 investments before then.

People
Hermes GPE – Peter Gale (head of private equity).

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