Federated Hermes raises $486 million for private equity fund
11 July 2023
Federated Hermes, Inc. (NYSE:FHI), a global leader in active, responsible investing, announces the successful closure of its fifth flagship Private Equity Co-investment fund (PEC V LP, PEC V, or The Fund).
PEC V has a proven, alpha-oriented strategy that provides investors with access to leading growth companies. The Fund’s global forward-looking, thematic strategy targets companies operating in sectors set to benefit from long-term trends that are reshaping global economic activity. Additionally, the strategy places emphasis upon portfolio construction, with the objective of delivering strong and sustainable returns, irrespective of what happens on the global stage.
PEC V launched and held its first close in December 2021, with an initial fundraising target of $400 million. The Fund significantly surpassed its target and held its final close in June 2023 reaching $486 million. Commitments came from existing PEC series investors including, but not limited to Local Pensions Partnership Investments (LPPI) and Hostplus as well as new investors from Europe and Korea, such as Samsung Life Insurance.
PEC V has already committed to 23 investments with a further seven approved by the investment committee. Federated Hermes GPE has a 22-year track record of making co-investments, having committed $4.5 billion across 278 global co-investments, as of 31st March 2023.
Peter Gale, CIO and Head of Private Equity at Federated Hermes GPE, commented: “Despite macroeconomic headwinds and a challenging fundraising environment, PEC V has closed well above our original target. This demonstrates that there is an ongoing appetite for the unique opportunities that Federated Hermes GPE provides.
This is a collaborative effort and I am grateful to our existing and new investors for choosing to partner with us. It is a testament to Federated Hermes GPE’s global reach that PEC V has attracted investors from markets as widespread as Switzerland and Korea. With the closure of PEC V, we are excited for the next step of seeking to deliver significant cash returns to our investors through investing in growth-oriented, disruptive companies.”
The plan, assembled in collaboration with its clients, identifies the focus of its engagement with companies in the year ahead based on the most material drivers of long-term sustainable wealth for its clients and their ultimate beneficiaries.