FTSE 250 Private Equity business updates on performance
FTSE 250 private equity business HarbourVest Global Private Equity Ltd (‘HVPE’) has reported an increase in NAV per share of 1.2% over the past month. We produced the video below for the Group’s interims in November 2020. HVPE is listed on the main market of the London Stock Exchange with the ticker LON: HVPE
Video: HVPE Investor Update
Announcement in full
HVPE ESTIMATED NAV PER SHARE UPDATE AT 31 JANUARY 2021
- Estimated NAV per share of $31.86 (£23.24), up 1.2% over the month
- 14% of Investment Portfolio (public company holdings) valued at 31 January 2021
- 1% at 31 December 2020 marks
- Remaining 85% valued at 30 September 2020
- Marginal positive cash flow 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 January 2021.
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.
During January, HVPE did not make any new commitments to HarbourVest-managed funds. HVPE’s Investment Pipeline (unfunded commitments) decreased on a net basis by $21.1 million during the month based on capital funded and foreign exchange rate movements. At 31 January 2021, HVPE’s Investment Pipeline totalled $1.57 billion.
During January, HVPE invested $20.9 million in HarbourVest funds (compared to $106.6 million in December). The largest individual investment during the month was made to a global direct co-investment fund.
At 31 January 2021, HVPE’s estimated NAV per share was $31.86 (£23.24), compared to the 31 December 2020 estimate of $31.47 (£23.02). This represents an uplift of 1.2% in US dollar terms over the previous month.
It is important to note that the 31 January 2021 NAV per share is based predominantly on 30 September 2020 marks (see breakdown below). The increase in the 31 January NAV per share over the previous month resulted largely from favourable public market adjustments and uplifts from material events, namely in the fund-of-funds, following several successful IPOs in the previous quarter including a Fintech lending company.
The valuation breakdown of the HVPE portfolio as reported here is as follows: 14% actual 31 January 2021 (representing the public companies in the portfolio); 1% actual 31 December 2020; and 85% 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 January 2021.
HVPE received $21.2 million of distributions from HarbourVest funds during January 2021 (compared to $108.9 million in December). The largest source of distributions was from a US-focused venture fund-of-funds, which distributed proceeds received from the sale of the publicly traded shares of a software company following its successful IPO last year. During January, there were a total of 15 liquidity events across HVPE’s underlying portfolio compared to December’s 41 events, and a last 12-month average of 20.
Balance Sheet and Credit Facility
At 31 January 2021, HVPE’s credit facility remained $120.0 million drawn. Borrowing at the HarbourVest fund level amounted to $377.9 million, a decrease of $42.8 million from the previous month. HVPE’s cash and cash equivalents ($98.4 million) and available credit ($480.0 million) totalled $578.4 million.
Additional detail about HVPE’s NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 31 January 2021.
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.
Harbourvest Investors Video