This publication carries latest news on investments products offerings in the North America market.

Boston-headquartered HarbourVest Partners, which manages assets in private markets, has held the final close of its mezzanine-focused co-investment fund at $375 million and its third real assets fund at $366 million.

The Mezzanine Income Fund I was oversubscribed and closed above its $250 million target at its hard cap of $375 million, the firm said in a statement late last week. Limited Partners in both funds, more than half of which are new to HarbourVest, consist of pension funds, insurance companies, endowments and family offices across the US, Canada, Latin America, Asia and Europe.

“HarbourVest has been investing in mezzanine since 2003, and over the last decade we’ve seen consistent growth in the demand from private equity sponsors for mezzanine debt partners to help complete transactions,” Peter Lipson, managing director, HarbourVest, said.

HarbourVest’s approach to the mezzanine market enables investors, it said, to access companies primarily in the US lower middle market. (Mezzanine financing is a hybrid of debt and equity financing that gives the lender the rights to convert to an ownership or equity interest in the company in case of default, after venture capital companies and other senior lenders are paid.)

Meanwhile, the firm’s Real Assets Fund III is HarbourVest’s first commingled real assets fund and closed above its $300 million target at $366 million. 

“The real assets market has gone from a niche component of the broader secondary market to reach a level of maturity where it is now sizable enough to be viewed as a segment standing on its own,” Kevin Warn-Schindel, MD at the firm, said.

“The dynamics of this early stage maturity is comparable to the early days of the PE secondary market itself, where the growth in the demand for liquidity continues to lag the availability of capital to provide it. In addition, as the market continues to mature we are seeing more GP spinout and GP-led transactions trickle into the space,” he added.

HarbourVest has more than $40 billion in assets under management.