Federated Hermes Raises $486M for Private Equity Co-Investment Fund

Federated Hermes has closed its fifth private equity co-investment fund, PEC V, at $486 million.

The firm hit a $400 million first close in December 2021 with backers including Local Pensions Partnership Investments (LPPI), Hostplus and new investor Samsung Life Insurance.

Federated Hermes GPE is the global private equity arm of Federated Hermes, an investor with just over $700 billion in assets.

Its private equity unit focuses on fund investments and co-investments in mid-market buyouts and growth businesses, currently managing $6.3 billion of assets through managed accounts, pooled funds and side cars.

“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,” said Peter Gale, CIO and head of private equity at Federated Hermes GPE.

The firm has a 22-year track record of making co-investments, having committed $4.5 billion across 278 global co-investments as of the end of March.

PEC V has already been used to make 23 investments, with a further seven approved.