Key Takeaways
- Geography: United States.
Analysis
HarbourVest Partners, a global private markets firm, has established a dedicated credit secondaries investment team, signaling a strategic push into one of the fastest-growing and still undercapitalized segments of private markets. The new team will be led by Greg Ciesielski (from HarbourVest’s secondaries group) and Sean Gillespie (from its credit platform).
The expansion reflects HarbourVest’s belief that credit secondaries will become a core pillar of its private credit offering. In 2024, the global private credit market exceeded $1.6 trillion, yet only about $6.8 billion of dry powder is currently allocated to credit secondaries—underscoring the segment’s early stage. Transaction volumes in credit secondaries have expanded from around $3 billion in 2020 to $10 billion in 2024.
Under their leadership, the new group will execute both LP-led and GP-led credit secondary deals, integrating the strategy with HarbourVest’s broader credit platform—spanning primary, direct, and secondary credit investments. This approach enables the firm to offer diversified exposure across geographies, strategies, and managers, positioning itself as a preferred capital provider in the credit secondaries space.
CEO John M. Toomey Jr. emphasized that HarbourVest’s strength lies in its multi-manager investment framework and deep GP relationships—with over 600 active GPs—which have underpinned its success in equities secondaries. He believes those assets—combined with credit underwriting expertise—give HarbourVest a competitive edge in scaling credit secondaries.
As demand for liquidity solutions grows among institutional investors, credit secondaries offer access to seasoned portfolios, downside protection, and enhanced yield potential. According to Greg Ciesielski, HarbourVest’s ability to underwrite portfolios at scale and deploy capital across the credit spectrum adds a compelling value proposition for investors.
HarbourVest is not alone in racing toward credit secondaries. For instance, Coller Capital recently raised $6.8 billion for its credit secondary strategy. Pantheon Ventures also secured over $5.2 billion in commitments for its private credit secondaries fund. Industry projections estimate that credit secondary volumes could reach $15–$20 billion in 2025 and beyond.
Internally, HarbourVest already had exposure to credit secondaries through legacy capabilities. The new team is meant to formalize, scale, and sharpen execution in this vertical. According to HarbourVest’s plans, the team is expected to grow to nine professionals by 2026, covering roles such as principals, VPs, and senior associates.