HVPE: Net Asset Value
HVPE ESTIMATED NAV PER SHARE UPDATE AT 30 SEPTEMBER 2020
- Estimated NAV per share of $28.48 (£22.04), broadly flat over the month
- Valuation gain from large software IPO offset foreign exchange driven declines
- 12% of Investment Portfolio (public company holdings) valued at 30 September 2020
- Remainder of the portfolio valued at 30 June 2020
- Marginal positive cash flow during month
HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a closed-end investment company, today announces its estimated Net Asset Value (“NAV”) at 30 September 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 September, HVPE did not make any new commitments to HarbourVest-managed funds. HVPE’s Investment Pipeline (unfunded commitments) decreased on a net basis by $26.9 million during the month based on capital funded and foreign exchange rate movements. At 30 September 2020, HVPE’s Investment Pipeline totalled $1.65 billion.
Investment
During September, HVPE invested $26.2 million in HarbourVest funds (compared to $7.7 million in August). The largest investment was made to a US-focused venture fund-of-funds.
Growth
At 30 September 2020, HVPE’s estimated NAV per share was $28.48 (£22.04), compared to the 31 August 2020 estimate of $28.45 (£21.28).
It is important to note that the 30 September 2020 NAV per share is based predominantly on 30 June 2020 marks (see breakdown below). The marginal increase in the 30 September 2020 NAV resulted from an unrealised valuation gain following a large software IPO, which offset unfavourable foreign exchange movements and a decline in the aggregate value of other public companies in the portfolio during the month.
The valuation breakdown of the HVPE portfolio as reported here is as follows: 12% actual 30 September 2020 (representing the public companies in the portfolio); and 88% actual 30 June 2020. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cashflows, and any known material events to 30 September 2020.
Realisation
HVPE received $27.4 million of distributions from HarbourVest funds during September 2020 (compared to $2.4 million in August). The largest source of distributions was from a 2014 vintage global multi-strategy fund-of-funds. During September, there were a total of 20 liquidity events across HVPE’s underlying portfolio compared to August’s 16 events, and a last 12-month average of 20.
Balance Sheet and Credit Facility
At 30 September 2020, HVPE’s credit facility remained $120.0 million drawn. Borrowing at the HarbourVest fund level amounted to $379.3 million, a decrease of $6.9 million from the previous month. HVPE’s cash and cash equivalents ($103.6 million) and available credit ($480.0 million) totalled $583.6 million.
Additional detail about HVPE’s NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 30 September 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.
