Private Equity

Focused on delivering consistent alpha through access to some of the most innovative and resilient companies and General Partners (GPs) in hard-to-reach areas of the global private equity market

Private companies are the innovation backbone of the global economy, powering the world’s long-term growth. For over 30 years, we have developed close connections with partners across global markets to seek, for our clients, investments in the companies and primary funds that will shape the world around us.

At a glance

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Years in fund investments

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Years in co-investments

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Total number of investments

Source: Federated Hermes as at 31 March 2024.

The value of investments and income from them may go down as well as up, and you may not get back the original amount invested.

The pillars of our offering

1. Client-centric solutions:

Our partnership mindset seeks to enable superior client outcomes with opportunities structured to deliver core objectives.

2. Long and resilient track record:

For over 30 years we have generated attractive returns while prioritising cashback.

3. Alpha through access:

Our flexibility and structure helps us to access hard-to-reach, high-growth companies with an Enterprise Value of $500m or less.

4. Co-investment pioneers:

We are among the early pioneers of a co-investment strategy with a track record in excess of 20 years.

5. Extensive GP network:

We have deep relationships with some of the leading next-generation and established global Private Equity managers globally.

6. Next-generation managers:

We target early vintage primary funds led by experienced and successful executives who have spun-out from larger organisations with a track record of delivering private equity returns.

7. Thematic framework:

We invest into sectors whose growth is driven by secular long-term trends that are shaping global economic activity.

We are experienced investors with a broad skill base and a cohesive style. Our forward-looking, client-focused partnership approach has demonstrated resilience over many decades, allowing us to deliver a broad range of solutions for investors.

Peter Gale, Chair - Private Equity

Why Federated Hermes Private Equity?

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Differentiated sources of alpha

On account of our flexible approach, market reach and close industry connections forged over 30 years of private equity investing, we are able to access some of the fastest-growing companies in the world via our range of client-centric solutions. The size of the companies we currently focus on creates a low correlation with many competitors’ portfolios and allows us to access the top-line growth and long-term profitability of lesser-known corporates.

Alongside our current lower mid-market focus, our co-investment strategy aims to build a sufficiently diversified portfolio of leading, high-growth companies. Our secondaries capabilities are targeted towards helping to build diversified exposure to high-quality companies and private equity managers.

Strong cashback profile

A core tenet of our investment strategy is to exit positions in a timely way with a focus on delivering cashback to investors. Our cash-return profile is robust and differentiates us against many peers in the industry, in which many private equity funds remain unliquidated amid an industry-wide slowdown in exits. We remain highly committed to returning cash to investors as well as redeploying funds to the next high-growth opportunity.

Seeking diversified all-weather returns

We believe that diversification by thesis, geography and sector minimises exposure to any particular source of systemic risk. The majority of companies we back have an enterprise value of less than $500m with a secular growth profile and limited usage of leverage. Their unique risk profile calls for a highly specialised investment approach. By investing through funds and co-investments, we seek to build a highly diversified balanced portfolio that aims to deliver consistent returns throughout the market cycle and across many vintages, while mitigating risk. By virtue of the diversity of the managers we partner with, our portfolio targets a lower risk profile than the typical private equity exposure.

Client partnership in action

Our partnership approach to investing places clients at the forefront of our thinking. We are committed to building rewarding relationships that seek to deliver superior results as part of the solutions we focus on providing to meet our clients’ needs.

How we invest

Future-focused solutions:

Our portfolios are largely focused on growth buyouts and small/mid-sized companies with high growth. We aim to construct portfolios sufficiently diversified across theme, sector, vintage, and region.

Working in partnership with a global network of established and ‘next-generation’ managers, we seek to provide the following client-centric offerings:

Co-investment

We actively invest alongside leading GPs directly in fast-growing companies in the lower mid-market. Our co-investments strategy forms an integral part of our Private Equity offering.

Primary funds

We are active investors in primary funds with a particular focus on ‘next-generation’ managers around the globe.

Secondaries

We offer access to the secondary market through a dedicated team covering sell-side opportunities to proactively support the liquidity needs of existing clients. We also provide access to buy-side opportunities through our dedicated secondaries programme.

Other bespoke strategies

Alongside our co-investment and primary fund programme we work closely and collaboratively with our clients to develop bespoke investment strategies to meet specific investment objectives and selectively manage a range of separately managed discretionary and non-discretionary accounts.

Who we are

Leadership

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Our capabilities provide the key.

Our capabilities provide the key.

EOS Stewardship

Focused on delivering consistent alpha through access to some of the most innovative and resilient companies and General Partners (GPs) in hard-to-reach areas of the global private equity market

At a glance

The pillars of our offering

Why Federated Hermes Private Equity?

How we invest

Future-focused solutions:

Co-investment

Primary funds

Secondaries

Other bespoke strategies

Who we are

Brooks Harrington, CFA

Peter Gale

Karen Sands

Elias Korosis

Sean Yoo

Lucia Mancisidor

Paul Acheson

Cressida Adams

Pierre Barel

Archie Brogden

James Chalmers

Justin Chang

David D’Costa

Hugo Dymond

Dmitry Fay

Rachel Foo

Jeremy Gruber

Natalie Harajka

Ryan Hayes

Sowan Hong

Heejae Kim

John Kim

Adrian Laci

Christian Mankiewicz

Fidel Manolopoulos

Brendan Mockler

Daniel Moergel

Cameron Payne

Sanjeev Phakey

Roshana Prabaharan

Whitney Spiegel

Kristiyan Stoychev

Bridget Unwin

Henry Wijaya

Feiyu Wu

Jaclyn Zhu

Chris Olivares

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Closely connected for enhanced outcomes

Heritage and track record​

Client-centric investing​

Access to high-quality investment opportunities​

Enhanced outcomes and portfolio diversification

Uncover the real potential in Private Markets

Jakob Nilsson

Closely Connected

The value of investments, and income from them, may go down as well as up, and you may not get back the original amount invested.

Sustainability. We mean it.

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Heritage and track record

Client-centric investing

Access to high-quality investment opportunities

Uncover the real potential
in Private Markets

Sustainability.
We mean it.