Horizon II Completes Successful Preferred Equity Financing

Federated Hermes Ltd. has successfully completed a preferred equity financing for its Horizon II programme. Horizon II is part of a $3 billion series of private equity mandates given by the BT Pension Scheme (BTPS) to Federated Hermes. This programme focuses on global, diversified investments in the lower and mid-market buyout sectors. BTPS is one of the largest private sector pension schemes in the UK, managing around £35.7 billion in assets for over 258,000 members. The innovative preferred equity instrument helps manage the liquidity profile while retaining potential upsides of BTPS’s investments in the Horizon II programme. Federated Hermes’ private equity strategy involves exiting investments at optimal times to deliver value to investors, having distributed $2.7 billion since 2010 through its liquidity solutions. The transaction was carried out by the firm's secondaries team, known for its sell-side expertise and a newly established secondary buy-side mandate.