HVPE: NAV Update

20th January 2021 | HarbourVest Global Private Equity Limited
  • Estimated NAV per share of $31.47 (£23.02), up 0.7% over the month
    • 14% of Investment Portfolio (public company holdings) valued at 31 December 2020
    • 86% at 30 September 2020 marks
  • In total, $107 million committed to two HarbourVest-managed funds and two secondary co-investment transactions
  • Record month for distributions with $109 million received against $107 million of capital calls, resulting in marginal positive cash flow

HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a closed-end investment company, today announces its estimated Net Asset Value (“NAV”) at 31 December 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 December, HVPE committed a total of $107.1 million to two HarbourVest-managed funds and two secondary co-investment transactions. This included commitments of $50.0 million to a new global multi-strategy fund-of-funds progamme, $40.0 million to a new international fund-of-funds programme, and commitments of $12.8 million and $4.3 million to two separate secondary co-investment transactions.

HVPE’s Investment Pipeline (unfunded commitments) increased on a net basis by $1.3 million during the month based on the new HarbourVest fund commitments, capital funded, and foreign exchange rate movements. At 31 December 2020, HVPE’s Investment Pipeline totalled $1.59 billion.

Investment

During December, HVPE invested $106.6 million in HarbourVest funds (compared to a net $21.6 million in November). This represents the second-largest monthly figure for capital calls in the Company’s history. Of the total amount called, 67% was from HarbourVest funds with a primary fund-of-funds focus. However, the largest individual investment during the month was made to the most recent global secondary fund.

Growth

At 31 December 2020, HVPE’s estimated NAV per share was $31.47 (£23.02), compared to the 30 November 2020 estimate of $31.26 (£23.46). This represents an uplift of 0.7% in US dollar terms over the previous month.

It is important to note that the 31 December 2020 NAV per share is based predominantly on 30 September 2020 marks (see breakdown below). The increase in the 31 December NAV per share over the previous month resulted from favourable foreign exchange movements and positive valuation gains in the fund-of-funds, which were partially offset by a decline in the direct co-investment portfolio.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 14% actual 31 December 2020 (representing the public companies in the portfolio); and 86% actual 30 September 2020. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cashflows, and any known material events to 31 December 2020.

Realisation

HVPE received a record $108.9 million of distributions from HarbourVest funds during December 2020 (compared to $28.2 million in November). Distributions from HarbourVest funds were mostly concentrated in primary funds at 71%. This was followed by direct co-investments at 16%, which included proceeds received from the sale of South Korean dry bulk and liquified natural gas carrier H-Line Shipping (HVPE’s 15th largest underlying portfolio company at 31 July 2020). During December, there were a total of 41 liquidity events across HVPE’s underlying portfolio compared to November’s 26 events, and a last 12-month average of 20.

Balance Sheet and Credit Facility

At 31 December 2020, HVPE’s credit facility remained $120.0 million drawn. Borrowing at the HarbourVest fund level amounted to $420.7 million, an increase of $24.4 million from the previous month. HVPE’s cash and cash equivalents ($99.9 million) and available credit ($480.0 million) totalled $579.9 million.

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

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