• Federated Hermes Limited Private Equity launched the sixth vintage of its co-investment strategy, PEC VI.
• Initial commitments for PEC VI reached approximately $320 million.
• PEC VI follows the PEC series focus on lower mid-market buyout investments.
• The previous fund, PEC V, closed at $486 million in 2023.
• First fundraising phase included major returning investors from Australia and South Korea, plus the first Italian pension fund in the series.
• Additional fundraising closes are expected in 2026.
• The Private Equity business is led by CIO Brooks Harrington, who has over a decade with the firm.
• The PEC series has delivered diversified, consistent returns since 2011.
• Lower mid-market buyouts offer opportunities due to inefficient pricing, attractive entry valuations, and broad exit options.
• PEC V recorded a median entry enterprise value of $144 million.
• Federated Hermes Private Equity has a 30-year co-investment track record, strong GP relationships, and global deal sourcing.
• The firm has deployed over $5 billion into more than 300 co-investments since inception.
• Investors value the firm’s strong risk-adjusted performance and access to hard-to-reach lower mid-market opportunities.
• The global lower-mid market provides downside protection and diversification versus mid and large-cap PE.
• The team prioritizes proactive exits and steady cash distributions despite challenging exit conditions.
• PEC I and PEC II have been fully liquidated, demonstrating consistent distributions and meeting investor liquidity needs.
• Brooks Harrington emphasized the milestone and the support of existing and new LPs for PEC VI.
