The university has reportedly backed an oversubscribed $1.5bn buyout vehicle launched by Arcline aiming to take over eight-to-10 mid-market companies.
Harvard Management, which oversees the university’s $39bn endowment, has reportedly contributed approximately $150m to the $1.5bn close of a buyout fund launched by Arcline Investment Management, Bloomberg reported on Tuesday.
The vehicle, Arcline’s first buyout fund, surpassed its original $1.3bn target when it closed on March 11, with the help of contributions from unnamed university endowments, sovereign wealth funds, family offices and philanthropic foundations.
Neither party officially commented on Bloomberg’s report. Separately, public pension fund Texas Municipal Retirement System has confirmed making a $50m investment.
Arcline Investment Management will look to buy eight-to-10 mid-market companies across multiple industries, with each investment predicted to require equity injections of up to $300m.
The portfolio is expected to generate as much as $1bn in turnover and $125m in core earnings, according to the Texas retirement system, and will target a diverse range of sectors and end-markets.
Arcline Investment Management was founded in September 2018 as an offshoot of Golden Gate Capital, a buyout firm with $15bn under management for clients including Princeton University.
Elements of Arcline’s strategy mirror Golden Gate’s approach, including the leadership of Rajeev Amara, who served as the latter firm’s managing director for 18 years.
Harvard University backed Golden Gate’s inaugural fund in 2001, however it has since ceased its interest in the firm’s portfolio, according to unnamed sources cited by Bloomberg.
