Vanguard To Broaden Private Equity Access To Qualified Individual Investors
Index fund behemoth Vanguard is expanding the offering of its private equity strategy to qualified individual investors in USA.
Vanguard entered the private equity market in 2020 with an initial focus on institutional advised clients, including pensions, endowments, and foundations; the firm's private equity strategy will initially be available to eligible non-advised Vanguard clients and is expected to be made available to eligible advised clients of Vanguard Personal Advisor Services in the near future.
"Private equity has the potential to improve long-term investment outcomes of a broadly diversified portfolio," said Vanguard CEO, Tim Buckley. "Over time we will expand access to this asset class, which has traditionally been reserved for the wealthiest investors, to the many qualified investors at Vanguard."
Vanguard's private equity strategy is provided via a partnership with HarbourVest; eligibility requirements for individual investors in the United States to access the strategy include certification as a Qualified Purchaser and Accredited Investor.
"We look forward to providing our qualified individual investors access to our partnership with HarbourVest, one of the industry's premier private equity providers," said Matt Benchener, managing director of Vanguard Retail Investor Group. "Our extensive private equity research suggests that investors who can access high-quality, broadly diversified strategies with top private equity managers can potentially realize significant financial benefits over long time horizons."
"HarbourVest has long supported democratizing private markets, and we are pleased to enter into this next phase with Vanguard by broadening access to qualified individual investors," added John Toomey, Managing Director, HarbourVest Partners. "Our partnership with Vanguard combines HarbourVest's industry expertise with Vanguard's scale and deep client relationships, and highlights the strength in bringing together two client-centric cultures to deliver a diversified private markets solution."
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