HVPE: NAV Update

27th April 2021 | HarbourVest Global Private Equity Limited

HVPE ESTIMATED NAV PER SHARE UPDATE AT 31 MARCH 2021

  • Estimated NAV per share of $35.38 (£25.67), up 9.1% over the month
    • 14% of Investment Portfolio (public company holdings) valued at 31 March 2021
    • 72% at 31 December 2020 marks
    • Remaining 14% valued at 30 September 2020
  • Strong result lifts HVPE’s 10-year compound annual growth rate in NAV per share to 13.1%, equivalent to a multiple of 3.4x the March 2011 estimate
  • Positive cash flow during the month with a net $4 million received

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

Commitments

During March, HVPE made one commitment of $25.0 million to HarbourVest’s most recent global direct co-investment fund. However, HVPE’s Investment Pipeline (unfunded commitments) decreased on a net basis by $47.2 million during the month based on capital funded and foreign exchange rate movements. At 31 March 2021, HVPE’s Investment Pipeline totalled $1.51 billion.

Investment

During March, HVPE invested $71.7 million into HarbourVest funds (compared to $17.8 million in February 2021). The largest individual investment during the month was made to a HarbourVest real assets vehicle.

Growth

At 31 March 2021, HVPE’s estimated NAV per share was $35.38 (£25.67), compared to the 28 February 2021 estimate of $32.44 (£23.28). This represents an uplift of 9.1% in US dollar terms over the previous month.

It is important to note that the 31 March 2021 NAV per share is based predominantly on 31 December 2020 marks (see breakdown below). The increase in the March NAV per share over the previous month resulted mainly from year-end 2020 valuation gains.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 14% actual 31 March 2021 (representing the public companies in the portfolio); 72% actual 31 December 2020; and 14% 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 March 2021.

At 31 March 2021, the 10-year compound annual growth rate in HVPE’s NAV per share in dollar terms was 13.1%, equivalent to a multiple of 3.4x the 31 March 2011 estimate.

Realisation

HVPE received $75.7 million of distributions from HarbourVest funds during March 2021 (compared to $29.2 million in February 2021). The largest source of distributions came from a 2016 vintage global direct co-investment fund. During March, there were a total of 64 liquidity events across HVPE’s underlying portfolio compared to February’s 37 events, and a last 12-month average of 22.

Balance Sheet and Credit Facility

During March, in anticipation of some larger calls, HVPE drew down a further $30.0 million on its credit facility, taking it to $150.0 million drawn. Borrowing at the HarbourVest fund level amounted to $357.1 million, a decrease of $21.0 million from the previous month. HVPE’s cash and cash equivalents ($142.3 million) and available credit ($450.0 million) totalled $592.3 million.

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

HVPE Investors Video

Click here for Harbourvest Investor videos and news