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Hg reaches €1bn first close for debut secondaries fund
Hg has raised approximately €1bn at the first close of its debut secondaries fund, taking it beyond halfway towards its €1.75bn target, according to a report by The Wall Street Journal.
Orion 1, the firm’s inaugural vehicle for GP-led secondaries investments, reached the milestone after around six months in the market.
The fundraising follows Hg’s establishment of a dedicated GP-led secondaries team in January, extending its investment strategy into single-asset transactions in software and technology-enabled services.
The team is led by Dushy Sivanithy, partner and head of secondaries, who joined from CPP Investments. He spent more than seven years at the Canadian pension investor, leading its secondaries business and launching its single-asset programme. Former CPP Investments colleague Daniel Ward also joined the team.
According to Hg’s profile of Ward, the Orion team targets investments in software and services businesses managed by other sponsors, applying the firm’s sector expertise to GP-led opportunities.
Hg’s expansion comes amid growth in the wider secondaries market. Global transaction volumes reached a record $240bn in 2025, up 48% year on year, according to Jefferies. The bank attributed activity to demand for liquidity and active portfolio management among investors and sponsors.
GP-led transactions accounted for $115bn of that total, increasing 53% from the previous year. Continuation vehicles, which allow sponsors to retain assets while offering existing investors an opportunity to sell, accounted for 14% of sponsor-backed exits globally, according to Jefferies.
Source: Private Equity Wire