Hg Raises €1 Billion for Debut Secondaries Fund
The firm hit the milestone for its Orion 1 fund following six months of active fundraising.
Updated on Oct. 15, 2026 in Business Strategy
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Private equity firm Hg has secured €1 billion at the first close of its debut GP-led secondaries fund, Orion 1. This new vehicle marks a strategic push to provide liquidity for investments in software and technology-enabled services.
Why it matters
The fund addresses increasing demand from sponsors and investors for liquidity and active portfolio management solutions. It leverages Hg's sector expertise to capitalize on the growing volume of sponsor-led secondaries.
The firm raised €1 billion in six months toward its €1.75 billion target for Orion 1. Global secondaries transaction volumes reached $240 billion in 2025, with GP-led activity accounting for $115 billion of that total.
The players
Hg
Hg is a private equity firm that focuses on investments in the software and technology-enabled services industries.
Dushy Sivanithy
Dushy Sivanithy leads the dedicated GP-led secondaries team at Hg.
The details
Hg utilizes its specialized knowledge of the software and technology sector to target investments managed by other sponsors. The fund specifically focuses on GP-led opportunities, which now represent a significant portion of exits for private equity firms.
Timeline
January 2026: Hg established its dedicated GP-led secondaries team.
2025: Global secondaries transaction volumes reached $240 billion.
October 2026: Orion 1 reached its first close.
Market Landscape
Hg's entry into the secondaries market mirrors the industry-wide surge in GP-led liquidity solutions, which saw transaction volumes reach $240 billion in 2025. This move positions the firm to compete in a sector where continuation vehicles now account for 14% of global exits.
The success of this fund suggests continued availability of liquidity for software businesses, potentially facilitating longer holding periods for investors. Customers of these software companies may see more stable ownership structures as firms utilize secondary vehicles to manage their portfolios.
The takeaway
The rise of GP-led secondaries reflects a permanent shift in how sponsors manage portfolio life cycles. Investors should monitor how these secondary vehicles impact the long-term governance of the software companies they support.
Further reading
For broader trends in the private equity sector, see our guide to Business Strategy.
Source note: This article includes information reported by Private Equity Wire.
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