HVPE: NAV Update

19th August 2021 | HarbourVest Global Private Equity Limited

HVPE ESTIMATED NAV PER SHARE UPDATE AT 31st JULY 2021

  • Estimated NAV per share of $40.02 (£28.78), down 0.9% over the month
    • 17% of Investment Portfolio (public company holdings) valued at 31 July 2021 – driver of the marginal decline
    • 5% at 30 June 2021 marks; remaining 78% valued at 31 March 2021
  • Net investor during month with a net $32 million invested

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 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 July, HVPE made one commitment of $80.0 million to an international multi-strategy fund-of-funds, taking total commitments to this fund to $120.0 million. This new commitment, alongside capital funded and foreign exchange rate movements, contributed to a net increase of $19.1 million in HVPE’s Investment Pipeline (unfunded commitments), which totalled $1.69 billion at 31 July 2021.

Investment

During July, HVPE invested $60.9 million into HarbourVest funds (compared to $50.1 million in June 2021). The largest individual investment during the month was made to a HarbourVest real assets fund.

Growth

At 31 July 2021, HVPE’s estimated NAV per share was $40.02 (£28.78), compared to the 30 June 2021 estimate of $40.40 (£29.21). This represents a 0.9% decrease in US dollar terms over the previous month.

It is important to note that the 31 July 2021 NAV per share is still predominantly based on 31 March 2021 valuations (see breakdown below). The marginal decrease in the July NAV was driven largely by declines in the public company holdings in the fund-of-funds.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 17% actual 31 July 2021 (representing the public companies in the portfolio); 5% actual 30 June 2021; and 78% actual 31 March 2021. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cashflows, and any known material events to 31 July 2021.

Realisation

HVPE received $28.9 million of distributions from HarbourVest funds during July 2021 (compared to $131.4 million in June 2021). The largest source of proceeds came from a 2012 vintage global secondary fund, distributing capital related to the sale of Rodenstock, a German ophthalmic lens manufacturer. This was HVPE’s second largest company exposure as at 31 January 2021. During July, there were a total of 53 liquidity events across HVPE’s underlying portfolio compared to June’s 59 events, and a last 12-month average of 39.

Balance Sheet and Credit Facility

At 31 July 2021, HVPE’s credit facility remained $85.0 million drawn. Borrowing at the HarbourVest fund level amounted to $401.9 million, an increase of $27.5 million from the previous month. HVPE’s cash and cash equivalents ($117.4 million) and available credit ($515.0 million) totalled $632.4 million.

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