Vanguard partners with HarbourVest to enter private equity industry
Vanguard and HarbourVest have today announced a strategic partnership to provide investors with access to private equity.
A move into the private equity industry could see Vanguard earn higher returns and achieve increased diversification.
“We are entering the private equity market the Vanguard way—partnering with a world-class advisor to provide a high-quality offer,” said Vanguard chief executive Tim Buckley.
“Private equity will complement our leading index and actively-managed funds, as we seek to broaden access to this asset class and improve client outcomes.”
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The new private equity strategy will initially be provided by Vanguard Institutional Advisory Services (VIAS) to pensions, endowments and foundations.
VIAS manages over $50bn across nonprofit organisations, pension sponsors and other institutional investors.
Buckley said: “While this strategy will be initially available to institutional advised clients, we aim to expand access to investors in additional channels over time.”
John Toomey, managing director of HarbourVest Partners said: “This partnership is a natural extension of our business and combines our private markets expertise with a firm focused on improving client outcomes. We look forward to expanding access to private equity to help strengthen returns for qualified investors.”
The Financial Conduct Authority (FCA) recently granted Vanguard regulatory permission to begin providing retail investment advice.
Vanguard has become an aggressive competitor in the UK’s fund management industry, with its focus on low-cost passive funds helping it undercut many of its rivals’ prices.