Wall Street Journal: Vanguard Considers Expanding Alternative Investments with Push into Private Equity

Image via Vanguard.

Vanguard is considering expanding its alternative investments with a push into private equity, writes Dawn Lim for The Wall Street Journal.

The Malvern-based investment giant has had exploratory talks with several private-equity firms in the last year. These include both Boston-based HarbourVest Partners and London-based Pantheon.

According to people familiar with the matter, Vanguard is currently evaluating partnerships to create a mix of private-equity funds available to its clients. However, the talks are still in the early stages and no final decision has yet been made.

Private-equity executives have been informed by Vanguard that it is considering offering private-market strategies to its advisory services clients. The focus would most likely be on institutions and high-net-worth clients advised by the firm.

“In the alts space, there’s some great people, and there are also some crazy strategies,” said Vanguard Chief Executive Tim Buckley. “We have to make sure we find the right space there.”

Among the alternative investments are hedge funds and funds that buy illiquid stakes in private companies.

Vanguard originally considered offering individual private-market-fund strategies for clients. However, it decided to rather provide its clients with a more diversified mix of different fund strategies grouped in a single offering.

Read more about Vanguard’s plans in The Wall Street Journal here.

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