Vanguard Moves Into Private Equity Offerings With New Fund

Vanguard Group is moving into private equity, the latest index-fund provider to try its hand at alternative investments.

Malvern, Pennsylvania-based Vanguard will launch a private equity fund for institutional investors that will be managed by HarbourVest Partners, according to a statement Wednesday.

The move comes as pioneers of low-cost index-tracking funds strive to extend their institutional customer base. Large money managers such as pension funds and endowments have in recent years been allocating more capital to private equity, which requires long-term lockups and charges higher fees. Vanguard operates under an unusual client-owned structure.

Bloomberg’s Annie Massa reports on Vanguard moving into private equity.

(Source: Bloomberg)

“Private equity will complement our leading ...