HVPE: Net Asset Value

17th July 2020 | Harbourvest Global Private Equity Limited
  • Estimated NAV per share of $25.67 (£20.70), broadly flat over month
  • Public company holdings (11% of Investment Portfolio) valued at 30 June 2020
    • Remainder of the portfolio valued at 31 March 2020
  • Net investor during month with a net $9 million invested
  • Share price increase of 14% (in sterling and US dollars) through June

HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a closed-end investment company, today announces its estimated Net Asset Value (“NAV”) at 30 June 2020.

HVPE provides a complete private equity solution for public investors, managing the portfolio through four phases of the private equity cycle to create value: Commitments, Investment, Growth, and Realisation.

Commitments

On 17 June, the HVPE Board approved an equity commitment of $18.9 million to a secondary transaction made available to HVPE as a result of the Company’s existing commitments to HarbourVest funds. Subsequently, on 30 June, the transaction was signed by HarbourVest. The deal is now structured such that HVPE has made a gross commitment of $37.8 million but expects only half of this amount to be called over time.

HVPE’s Investment Pipeline (unfunded commitments) increased on a net basis by $11.9 million during June based on the new commitment, capital funded, and foreign exchange rate movements. At 30 June 2020, HVPE’s Investment Pipeline totalled $1.71 billion.

Investment

During June, HVPE invested $26.3 million in HarbourVest funds (compared to $20.3 million in May). The largest investment was made to the latest HarbourVest US-focused venture fund-of-funds.

Growth

At 30 June 2020, HVPE’s estimated NAV per share was $25.67 (£20.70), compared to the 31 May 2020 estimate of $25.62 (£20.79).

It is important to note that the 30 June 2020 NAV per share is based entirely on 31 March 2020 valuations or, for the public company holdings, 30 June 2020 marks (see breakdown below), and therefore reflects the decline from Q1 2020. The marginal uplift in the 30 June 2020 NAV per share over the previous month was due to positive valuation gains from the public companies in the portfolio, as well as favourable foreign exchange (“FX”) movements, which helped to offset the aggregate decline from the remaining Q1 2020 valuations received during the month.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 11% actual 30 June 2020 (representing the public companies in the portfolio); and 89% actual 31 March 2020. Consistent with previous estimated NAV reports, valuations are also adjusted for FX movements, cashflows, and any known material events to 30 June 2020.

Realisation

HVPE received $17.1 million of distributions from HarbourVest funds during June 2020. The largest source of distributions was from the secondary co-investment in Conversus Capital. During June, there were a total of 19 liquidity events across HVPE’s underlying portfolio compared to May’s 17 events, and a last 12-month average of 22.

Balance Sheet and Credit Facility

At 30 June 2020, HVPE’s credit facility remained $200.0 million drawn; the $200.0 million is deposited in a low-risk JP Morgan money market fund and is accessible for immediate utilisation as required. Borrowing at the HarbourVest fund level amounted to $360.1 million, an increase of $5.5 million from the previous month. HVPE’s cash and cash equivalents ($205.2 million) and available credit ($400.0 million) totalled $605.2 million.

Additional detail about HVPE’s NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 30 June 2020.

The HVPE team is here to discuss any questions you may have, so please do not hesitate to contact Richard Hickman or Charlotte Edgar using the contact details below.

Investor Update Video – HVPE Interim Results

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