Hg raised roughly 1 billion euros, or around $1.1 billion, for the first close of its debut secondary fund after roughly six months in the market.
The private equity software giant is understood to be more than halfway toward a 1.75 billion euro target for Orion 1, its inaugural vehicle for GP-led secondary deals.
At the start of this year Hg set up a new team to make single-asset secondary investments within the London-based firm's core software and technology-enabled services sectors.
The unit is led by Dushy Sivanithy, who joined from CPP Investments, where he spent over seven years leading the secondaries business as well as launching the firm's single asset program.
Daniel Ward, a former colleague of Sivanithy at CPP Investments, also joined the team.
Sister publication Private Equity News first revealed last year that Hg was mulling how to push into the booming secondary market, where stakes in private-equity funds are bought and sold.
A spate of buyout shops have launched secondary strategies in the last two years, including H.I.G. Capital and New Mountain Capital.
"The addition of a GP-led secondaries team is a recognition that many GPs will want to continue to own and support their best software and tech-enabled services businesses for extended periods," Hg said in January.
"The new team enables Hg to provide its clients with access to these proven compounders, while bringing Hg's differentiated insight, scale and flexibility to GP-led transactions."
The first close comes amid tough competition for limited partner capital on the fundraising trail. The software investor also wrapped up three of its main funds with nearly $30 billion in commitments earlier this year.
A spokesperson for Hg declined to comment.
Comments