Peter Gale

Federated Hermes, Inc. (NYSE:FHI), a global leader in active, responsible investing, announces the successful opening of its Federated Hermes GPE Innovation Fund II (“HINF II”). Commitments have been secured from British Business Investments and BT Pension Scheme (BTPS).

HINF II is focused on driving innovation and technological advancement across Europe and will conform with Article 8 of the EU Sustainable Finance Disclosure Regulation. The Fund’s focus will be on companies and funds with strong growth potential in the information, communication, and technology sector, particularly within non-cyclical sub-themes such as digital enterprise architecture and next generation healthcare.

HINF II introduces two separate funds: one for fund investments and one for direct investments and co-investments, allowing greater flexibility for investors.

The Fund’s launch demonstrates Federated Hermes GPE’s confidence in the potential for further opportunities in the European growth equity market. The strategy builds upon Federated Hermes GPE’s investment in European growth equity since 2014 and is the successor to the 2020 vintage, HINF I.

The Fund is available for distribution across global jurisdictions, including but not limited to the UK, Switzerland and other core European Union markets.

Peter Gale, CIO and Head of Private Equity at Federated Hermes GPE, commented; “Following the success of HINF I, HINF II underlines our priority to maintain a strong focus on investing in European growth opportunities. We prioritise investments in companies and themes that are at the forefront of accelerating technological innovation. By focusing on software-enabled themes and capturing opportunities arising from demographic and societal changes, we stay ahead of industry trends with the aim of driving growth within the portfolio.”

Judith Hartley, CEO, British Business Investments, commented: ‘’At British Business Investments, our mission is to increase the overall supply and diversity of finance for smaller businesses across the UK. Following our earlier support for Federated Hermes in 2019, we are pleased to be making a further commitment to HINF II through our Managed Funds Programme to support innovative smaller businesses in the information, communication and technology sectors.’’

Wyn Francis, Chief Investment Officer, Brightwell, adviser to BTPS said; “BTPS remains committed to supporting technological innovation across the UK and Europe. This growth focused program, complements their thematic Horizon private equity strategy which the Scheme co-founded with Federated Hermes GPE.”

Gordon Ceresino, Vice-Chair of Federated Hermes, Inc. commented; “HINF II’s specialist focus on European Growth Equity, follows the globally diversified thematic products of Horizon III and PEC V, that together have so far successfully raised $1.5bn.”

The post Federated Hermes announces second vintage of innovation program appeared first on AdviserVoice.

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 IC approved, as of today. 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 post Federated Hermes raises $486 million for private equity fund appeared first on AdviserVoice.