Hermes GPE is an active and long-time investor in global private equity
For over 27 years, we have specialised in investing in what we consider to be the best and most relevant investment opportunities in global private equity. Our objective is to create sustainable returns for our investors, no matter what is happening on the global stage.
We focus on fund investments and co-investments in buyouts and growth businesses – managing $6bn of assets via managed accounts, pooled funds and side cars, working in partnership with a wide range of Limited Partners (LPs).
Our reach helps us to amplify the opportunities. By nurturing a strong and diverse network of General Partner (GP) managers across the globe – from offices in London, New York and Singapore – we are well placed to spot investable potential at an early stage.
We employ a forward-looking investment strategy – seeking trends that we think are going to shape economies and societies in the future – investing where we ‘should’ rather than where we ‘can’.
The result is an impressive and consistent track record which highlights our stock picking skills.
Substantial track record with $7bn committed to over 260 funds*
* as at 31/03/19
Committed to over 200 co-investments over 18 years*
* as at 31/03/19
AUM in pooled funds and managed accounts for 44 LP clients*
* as at 31/03/19
GPs in our global-wide sourcing network*
* as at 31/03/19
We are a joint venture between our management team and Hermes Investment Management. We have a rich asset management heritage and a deep understanding of the importance of portfolio construction, diversification, fees and responsible investing.
Over 200 Co-investments completed
We have now invested more than $3bn in 200+ global
co-investments, making us one of the earliest adopters
of co-investments in the private equity industry.
Adoption of the current investment model where we
seek to invest in companies exposed to long-term
growth themes which we believe will demonstrate
Investment strategy refocused towards growth
Against a backdrop of high valuations and increasing
volatility, our strategic focus shifted from large buyouts
to small/mid buyouts, with strong organic growth profiles
in market niches.
Co-investment 'club' launch
The Club construct allows LPs on our co-investment
platform to share deal flow, widening the potential
investment universe for everyone.
Global footprint established
Opening of offices in the US and Singapore in order
to capitalise on strong co-investment deal flow and
to expand our GP network, in line with a global
Formation of hermes gpe
Merger of the private equity businesses of Hermes and Gartmore (in-house providers for two large UK pension schemes) which have been investing in private equity since the early 1990s.
Who we work with
LPs: Limited Partners
Prominent organisations worldwide trust us to be responsible but innovative stewards of their capital. We work with leading global pension, sovereign wealth and superannuation schemes as well as smaller family offices, government bodies and local authorities.
Prominent organisations worldwide trust us to be responsible but innovative stewards of their capital.
What they all have in common is a commitment to maximising value. We recognise that, and can offer a bespoke approach as well as a reputation as a flexible, creative and value-for-money partner.
The Co-investment Club
Our co-investment ‘Club’ epitomises the partnership approach: in addition to accessing the deal flow provided by our extensive global sourcing networks, like-minded investors share opportunities from their own primary GP relationships. The result is more variety, quality and depth of deal flow for everyone on the platform.
Some current Limited Partners
GPs: General Partners
A strong volume of high-quality deal flow is the foundation of an effective co-investment program. Our market longevity has allowed us to develop excellent deal sourcing relationships across all major regions. We work with a wide range of both established and emerging GPs, including fundless sponsors.
Our market longevity has allowed us to develop excellent deal sourcing relationships across all major regions.
GPs see us as partners rather than competitors. They value our experience – and how we understand their situation. Working alongside them, we execute deals globally in time sensitive and challenging settings, supporting due diligence, bidding and syndication processes.
We are active investors in GP fund raisings, and introduce opportunities to our own LPs as part of our Club offering. Club members currently have over $670bn in aggregate AUM, with $120bn* committed to private equity, and active annual investment programs.
*as at 31/03/2019, Preqin
Enhancing investment outcomes
It pays to have a broader view. We firmly believe that engaging in non-financial as well as financial considerations can improve investment outcomes.
And we understand that acting responsibly doesn’t impede results. Creating a positive effect on society and the environment – sustainable investing – is closely aligned to our objective of delivering above market returns for our investors.
We assess all investments using a proprietary RI framework to guide us. We aim to protect investors from the impact of ‘bad’ investment decisions, avoiding businesses that are later penalised for failing to meet legal, regulatory or public standards of conduct.
Additionally, we encourage and assist our GP partners to assess and monitor RI and ESG considerations in the companies we invest in on an ongoing basis.
This focus on responsible investing is part of our DNA. Hermes GPE is a signatory and active participant in the UN-supported Principles for Responsible Investment. For the last three years (2017 – 2019) we have received A+/A gradings in the firm’s PRI Assessment Reports in relation to both investment approach and strategy and governance.
Partner with us
We are always interested to hear from talented people that are interested in our partnership approach and innovative investment model. For example, we have a project-based intern program targeted at MBA or PhD students which runs throughout the year.
We are committed to providing equal opportunities for all. This applies to our recruitment practices as well as the way in which we manage relationships with our employees, service providers, our LP and GP partners and the businesses in which we invest.