HarbourVest Tries For Seventh F-o-F

HarbourVest Partners, a Boston-based fund-of-funds, direct investor and pension plan advisor, is in the market with a seventh fund-of-funds offering that could exceed the $3 billion mark when it closes later this year.

The Pennsylvania State Employees’ Retirement System already has committed $75 million to the fund. PennSERS has been investing with HarbourVest since 1997 when the firm raised its fifth fund-of-funds, the $707 million HarbourVest Partners V – Partnership Fund LP. Other longtime HarbourVest investors include Houston Municipal Employees’ Pension System, the University of Washington and the Washington State Investment Board.

The firm raised its most recent fund-of-funds in 1999, when investors committed of $2.42 billion to HarbourVest Partners VI – Partnership Fund.

Like its predecessor, that fund is diversified by investment stage, investment sector and geography. It invested with top-quartile early-stage venture capital firms like Austin Ventures’ $1.5 billion IT offering in February 2001 and with later-stage and buyout funds like the $2.08 billion Summit Ventures VII in February 2001. In the life sciences arena, it invested with Enterprise Partners’ $350 million fund in July 2001 and Index Ventures’ $300 million offering in April 2001. HarbourVest made inroads in the telecommunications and IT sectors with investments in Telecom Partners’ $840 million offering in June 2000 and Interwest Partners VII, a $750 million fund, in October 2000. HarbourVest VI, however, took a hit in that sector when it invested in the ill-fated Idealab Capital Partners II, a $364 million fund, in September 1999. An investment in Walden International’s fifth fund in April 2001, the $1 billion Pacven V, extended the fund’s reach into Asia, while an investment in the $400 million Jerusalem Venture Partners IV in November 2001, gave it a look at early-stage technology deals in Israel.

HarbourVest Partners VII – Partnership Fund LP, the firm’s latest offering, is expected to adopt a similar strategy.

HarbourVest did not return several calls seeking comment.

Contact Carolina Braunschweig at: Carolina.Braunschweig@tfn.com