HVPE: Net Asset Value

20th August 2020 | Harbourvest Global Private Equity Limited

HVPE ESTIMATED NAV PER SHARE UP 2% IN JULY 2020

  • Estimated NAV per share of $26.26 (£20.07), an increase of $0.59 during July
    • Driven largely by the public company holdings (11% of Investment Portfolio) valued at 31 July 2020 and foreign exchange (“FX”)
    • Approximately 4% at 30 June 2020 marks (a portion of direct co-investment valuations)
    • Remainder of the portfolio valued at 31 March 2020
  • Net investor during month with a net $14 million invested
  • $80 million repaid on credit facility during the month

HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a closed-end investment company, today announces its estimated Net Asset Value (“NAV”) at 31 July 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

During July, HVPE did not make any new commitments to HarbourVest-managed funds. HVPE’s Investment Pipeline (unfunded commitments) decreased on a net basis by $23.9 million during the month based on capital funded and foreign exchange rate movements. At 31 July 2020, HVPE’s Investment Pipeline totalled $1.68 billion.

Investment

During July, HVPE invested $25.2 million in HarbourVest funds (compared to $26.3 million in June). The largest investment was made to a global direct co-investment fund.

Growth

At 31 July 2020, HVPE’s estimated NAV per share was $26.26 (£20.07), compared to the 30 June 2020 estimate of $25.67 (£20.70).

It is important to note that the 31 July 2020 NAV per share is based predominantly on 31 March 2020 valuations (see breakdown below). The 2.3% uplift in the 31 July 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 FX movements.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 11% actual 31 July 2020 (representing the public companies in the portfolio); 4% actual 30 June 2020 (a proportion of direct co-investment valuations); and 85% actual 31 March 2020. Consistent with previous estimated NAV reports, valuations are also adjusted for FX movements, cashflows, and any known material events to 31 July 2020.

Realisation

HVPE received $11.7 million of distributions from HarbourVest funds during June 2020 (compared to $17.1 million in June). The largest source of distributions was from a US-focused venture fund-of-funds. During July, there were a total of 24 liquidity events across HVPE’s underlying portfolio compared to June’s 19 events, and a last 12-month average of 22.

Balance Sheet and Credit Facility

During the month, based on cash flow analysis presented by the Investment Manager, the Board approved an $80.0 million partial repayment of the amount drawn on the Company’s credit facility earlier this year. At 31 July 2020, following this repayment, the facility was $120.0 million drawn.

Borrowing at the HarbourVest fund level amounted to $357.0 million, a decrease of $3.1 million from the previous month. HVPE’s cash and cash equivalents ($109.8 million) and available credit ($480.0 million) totalled $589.8 million.

Additional detail about HVPE’s NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 31 July 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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