Federated Hermes launches PEC VI, the sixth edition of its co-investment strategy
26 NOV, 2025
By Joanna Piwko from RankiaPro Europe
Federated Hermes Private Equity has announced the launch and first closing of PEC VI, the sixth edition of its global co-investment strategy in private equity. The new strategy starts with approximately 320 million dollars in initial commitments, confirming the institutional appetite for consolidated co-investment programs in an environment where selectivity, entry discipline, and liquidity via distributions are once again key.
This first fundraising tranche is supported by the momentum of PEC V, which closed with 486 million dollars in 2023, and reinforces the continuity of a series active since 2011 that has offered, according to the manager, consistent returns to international investors.
Global LP base and European expansion
The first phase of PEC VI has mainly attracted capital from investors already present in previous editions, including:
- One of the largest pension funds in Australia.
- Leading institutional investors from South Korea, including a large pension fund and a top-tier insurer.
- The inclusion, for the first time in the series, of an Italian pension fund, expanding the European footprint of the program.
The manager anticipates that more agreements and commitments will materialize in 2026, in line with the usual deployment and portfolio construction schedule of the strategy.
Thesis: global midcap as a source of alpha and cushioning of falls
PEC VI maintains the structural positioning of the series: globally diversified co-investments focused on mid/small cap company buyout operations. The thesis is based on the fact that this segment offers:
- Valuation inefficiencies that allow better entry points.
- Larger universe of target companies and sectoral diversity.
We appreciate the support of our LPs, both existing and new, in our co-investment program. The global midcap capitalization market continues to offer solid relative performance and provides investors with fall mitigation and portfolio diversification, which complements medium and large private capital allocations. We are proud to announce this latest milestone for the sixth edition of our PEC strategy, backed by investors who are attracted by the consistency of our performance, solid cash returns, and exposure to a hard-to-access and very attractive market segment. Delivering real returns is fundamental in our investment philosophy, and this latest edition we announce maintains that commitment. We take a proactive approach to exits, seeking to maintain healthy cash distributions for investors in a challenging environment. This is demonstrated by the total liquidation of PEC I and II, continuing with our record of constant distributions and meeting the liquidity needs of clients.
Brooks Harrington, Private Equity Investment Director at Federated Hermes Private Equity
