(Bloomberg) — HarbourVest Companions has employed an govt from BlackRock Inc. to spice up its choices for rich people, an space of accelerating focus within the sector as some institutional buyers pare their non-public fairness holdings.
Venu Krishnamurthy joined the Boston-based HarbourVest, which manages greater than $147 billion, as head of worldwide non-public wealth. He had served as a prime govt for BlackRock’s Aladdin know-how system, the place he oversaw the wealth administration enterprise.
HarbourVest goals to faucet Krishnamurthy’s digital experience to assist broaden the attain of its merchandise that focus on rich buyers, Chief Govt Officer John Toomey stated in an interview.
Non-public fairness firms are combating for the enterprise of rich people, a largely untapped consumer supply, because the endowments and pension funds which have traditionally plowed their cash into the business look to diversify elsewhere.
Based as a fund of funds 4 a long time in the past, HarbourVest has struck partnerships with Vanguard Group and different companions lately in its bid to make non-public fairness out there to particular person buyers. The agency has additionally launched open-end funds to entice the rich, together with one earlier this yr that provided publicity to nearly 40 firms throughout 30 managers.
HarbourVest now has nearly 100 staff in its wealth enterprise. In a given yr, 15% to twenty% of the capital raised by the agency comes from rich buyers, in accordance with Toomey, a determine that he expects to rise over the long run. HarbourVest sees its multimanager technique as a aggressive edge in a market the place liquidity is essential.
“It permits us to take a position at fairly important scale,” Toomey stated. “We’re investing with a lot of managers, versus simply the massive buyout or one section of the market.”