Federated Hermes, a global leader in active investment management, has announced the successful launch and first round of capital raising for the sixth vintage of its flagship Private Equity Co-investment series (PEC VI, or The Fund) with initial commitments to the strategy of approximately $320 million. This builds on the success of its previous vintage, PEC V, which closed at $486 million in 2023.
The first phase of fundraising attracted commitments from existing investors in previous vintages including one of Australia’s largest superannuation funds, and leading South Korean institutional investors comprising a major pension fund and a top-tier insurance company. The round also welcomed the first Italian pension fund to the series. Further closes are expected to be held in 2026.
This announcement builds on the continued momentum of the Federated Hermes Private Equity business, led by Brooks Harrington, who assumed the role of CIO, Private Equity last year and has more than a decade of experience with the firm.
The PEC series has delivered a globally diversified strategy that has provided investors with consistent returns since 2011. In line with the PEC series strategy, PEC VI focuses on lower mid-market buyout investments. This segment continues to present compelling opportunities, benefiting from inefficient pricing and attractive entry valuations, a larger number and breadth of target companies, and greater exit optionality. The Fund’s previous vintage, PEC V, recorded a median entry enterprise value of $144 million1.
Federated Hermes Private Equity’s 30-year track record as pioneers of the co-investment model underpins strong deal sourcing relationships with GPs across all major regions. The business has built a reputation as the partner of choice for GPs and ‘next generation’ managers globally, who benefit from the team’s experience including in complex and time sensitive situations, to support partners through the transaction process. Investors have been attracted to Federated Hermes Private Equity’s track record of consistent delivery of strong risk adjusted performance across more than three decades, deploying over $5 billion into over 300 co-investments since inception2.
We are grateful for the support of existing and new LPs in our global co-investment program. The global lower-mid market continues to deliver strong relative performance and offers investors downside mitigation and portfolio diversification, complementing mid and large-cap private equity allocations. We are proud to announce this latest milestone for the sixth vintage of our PEC strategy, supported by investors who are drawn to the consistency of our performance, resilient cash-on-cash returns, as well as exposure to a hard-to-access and compelling segment of the market.
Delivering real returns is core to our investment philosophy, and the latest vintage continues that commitment. We take a proactive approach to exits, seeking to maintain healthy cash distributions to investors in a challenging exit environment. This is demonstrated by the full liquidation of PEC I and II, continuing our track record of consistent distributions and meeting the liquidity needs of clients.
Brooks Harrington, Chief Investment Officer, Private Equity
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1,2 As at 30 June 2025
