Private equity firm Hg Capital has raised more than $1.2bn for Fusion, its flagship semi-liquid fund targeting high-net-worth individuals, marking a significant milestone in the firm’s private wealth strategy just one year after launch.

Launched in late 2023, Fusion provides non-US-based wealthy investors access to Hg’s private equity funds and co-investment opportunities. The vehicle is now oversubscribed and closed the first quarter of 2025 with $1.2bn in assets under management.

Distributed via global platforms including UBS and other regional private banks, Fusion has attracted strong demand from high-net-worth clients, family offices, and advisers seeking specialised private market exposure.

“Sophisticated investors want to diversify with access to specialised strategies that can deliver consistent returns through market cycles,” said Martina Sanow, partner and head of Hg Wealth.

Hg has structured Fusion as a UCI Part II fund, the same Luxembourg-regulated format adopted by large-cap private equity firms such as Blackstone and KKR for their wealth-oriented products in Europe and Asia. The fund delivered 20% NAV growth in its first 12 months and has introduced quarterly subscription caps to support its return target of 15% to 17% per annum.

Since launching its private wealth effort in 2022 with just two employees, Hg has grown its wealth team to twelve across London, Munich, Singapore, and New York. The firm plans additional hires in the coming year to meet rising demand from affluent investors.

The expansion reflects a broader trend across private equity. Leading firms such as Ares, Permira, and Hg are building in-house teams dedicated to developing bespoke products and relationships for the under-penetrated high-net-worth segment.

As traditional institutional fundraising slows, private equity firms are increasingly turning to private wealth channels to tap into a vast pool of untapped capital. Hg’s latest milestone underscores the momentum behind this shift.