Hg reaches €1bn first close for debut secondaries fund

Hg has raised approximately €1bn at the first close of its debut secondaries fund, surpassing half of its €1.75bn goal, as reported by The Wall Street Journal. Orion 1, the firm's inaugural vehicle for GP-led secondaries investments, achieved the milestone following about six months on the market. This fundraising effort succeeded after Hg established a dedicated GP-led secondaries team in January, broadening its investment strategy into single-asset transactions within software and technology-enabled services.

The team, headed by Dushy Sivanithy, a partner and head of secondaries who transferred from CPP Investments, brings over seven years of experience in the Canadian pension sector, including leading their secondaries business and launching its single-asset program. Daniel Ward, another ex-CPP Investments colleague, also joined the team.

Hg's strategy focuses on investing in software and services firms managed by other sponsors, leveraging the company's industry expertise for GP-led opportunities. The expansion coincides with a surge in the wider secondaries market, with global transaction volumes hitting a record $240bn in 2025, marking a 48% year-on-year increase, as per Jefferies.

The bank attributes this growth to increasing demand for liquidity and active portfolio management among investors and sponsors. GP-led transactions contributed $115bn of this total, a 53% rise from the previous year. Continuation vehicles, enabling sponsors to retain assets while providing existing investors with an exit option, accounted for 14% of sponsor-backed exits globally, according to Jefferies.