HarbourVest Partners, a prominent global investment firm focused on private markets, has recently announced the establishment of a dedicated credit secondaries investment team. This new team will be led by Greg Ciesielski and Sean Gillespie. Ciesielski comes from the firm’s established secondaries team, while Gillespie hails from the credit team, marking a strategic collaboration that brings together expertise from both areas of the firm.
The formation of this team highlights HarbourVest’s increasing emphasis on the private credit secondaries market. This particular sector is rapidly growing and presents unique opportunities, yet it remains undercapitalized compared to other market segments. Recent data reveals that the global private credit market topped $1.6 trillion last year. In stark contrast, only $6.8 billion of the available dry powder for global secondaries is currently allocated to credit transactions, indicating a significant gap in investment potential.
Moreover, credit secondary transaction volumes have seen remarkable growth, rising from $3 billion in 2020 to $10 billion in 2024. This surge is driven by the evolving needs of both limited partners (LPs) and general partners (GPs) as they increasingly seek more flexible liquidity solutions tailored to their investment strategies.
As the heads of the newly formed team, Ciesielski and Gillespie will lead the global credit secondaries strategy at HarbourVest. They will leverage the firm’s position as the third-largest equity secondaries manager worldwide, drawing on over four decades of experience in the secondaries market. The new strategy will encompass transactions led by both LPs and GPs, and it will seamlessly integrate with HarbourVest’s broader credit platform, which includes primary, direct, and secondary investment opportunities. This comprehensive approach aims to deliver diversified exposure across different geographies, investment strategies, and managers, positioning HarbourVest as a valued partner for both general partners and institutional investors around the globe.
Underpinning HarbourVest’s approach to credit secondaries is a robust global sourcing network along with a comprehensive data set and a multi-manager framework. The firm is committed to structuring transactions that not only complement primary credit allocations but also provide investors with access to diversified portfolios. These portfolios are characterized by enhanced transparency and shorter time horizons, making them an appealing option for investors looking to navigate the complexities of the private credit market.
KEY QUOTES:
“We believe credit secondaries will be one of the fastest-growing segments of the secondaries market over the next several years. Our multi-manager investment approach, which provides access to quality deal-flow from our more than 600 active GP relationships, has allowed us to scale our equities secondaries business to become one of the largest in the world. Our platform brings together decades of secondaries experience with deep credit underwriting capabilities in both direct and primary commitments, which we believe positions HarbourVest to be a preferred capital provider at scale in the credit secondaries market.”
John M. Toomey Jr., CEO of HarbourVest Partners
“Credit secondaries offer investors differentiation in how to access income, downside protection and seasoned portfolios. The demand is strong and our ability to access capital at scale and underwrite portfolios provides a compelling value proposition for investors.”
Greg Ciesielski, Managing Director at HarbourVest Partners
