Vanguard Steps into Private Equity

Vanguard recently announced a strategic partnership with adviser HarbourVest to provide qualified investors with access to private equity. “We are entering the private equity market the Vanguard way—partnering with a world-class advisor to provide a high-quality offer,” said Vanguard CEO Tim Buckley in a press release. “Private equity will complement our leading index and actively-managed funds, as we seek to broaden access to this asset class and improve client outcomes.” The strategy will be initially available only to Vanguard’s institutional advised clients, but the company said it aims to expand access to investors in additional channels over time. Vanguard’s move was not a surprise to the industry. Last year, Institutional Investor, citing a reportfrom Willis Towers Watson, wrote that the shrinking number of public companies and high fees in private markets create the perfect conditions for a passive player like Vanguard to upend the booming private equity sector.