HVPE: Net Asset Value

21st September 2021 | HarbourVest Global Private Equity Limited

HVPE ESTIMATED NAV PER SHARE UPDATE AT 31 AUGUST 2021

  • Estimated NAV per share of $42.92 (£31.20), up 7.2% over the month
    • 17% of Investment Portfolio (public company holdings) valued at 31 August 2021
    • o 53% at 30 June 2021 marks; remaining 30% valued at 31 March 2021
  • Strong result lifts HVPE’s 10-year compound annual growth rate in NAV per share to 14.5%
  • Positive cash flow during the month with a net $51.3 million received

HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a closed-end investment company, today announces the usual detail on its estimated Net Asset Value (“NAV”) at 31 August 2021 following the flash announcement made on 15 September 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 August, HVPE made two new commitments totalling $52.0 million. Both commitments were to secondary co-investment transactions and were split $30.0 million and $22.0 million respectively. The new commitments, alongside capital funded and foreign exchange rate movements, contributed to a net increase of $28.9 million in HVPE’s Investment Pipeline (unfunded commitments), which totalled $1.72 billion at 31 August 2021.

Investment

During August, HVPE invested $21.3 million into HarbourVest funds (compared to $60.9 million in July 2021). The largest individual investment during the month was made to a secondary co-investment transaction.

Growth

At 31 August 2021, HVPE’s estimated NAV per share was $42.92 (£31.20), compared to the 31 July 2021 estimate of $40.02 (£28.78). This represents a gain of 7.2% in US dollar terms over the previous month.

The significant increase in the 31 August 2021 NAV resulted from positive valuation gainsacross the portfolio, particularly in the fund-of-funds, following receipt of 30 June 2021 marks (see breakdown below). These have reflected strong, largely unrealised gains across all strategies since the previous report, which was based primarily on 31 March 2021 valuations.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 17% actual

31 August 2021 (representing the public companies in the portfolio); 53% actual 30 June 2021; and 30% 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 August 2021.

Realisation

HVPE received $72.6 million of distributions from HarbourVest funds during August 2021 (compared to $28.9 million in July 2021). The largest source of proceeds came from a 2015 vintage US-focused venture fund-of-funds. During August, there were a total of 40 liquidity events across HVPE’s underlying portfolio compared to July’s 53 events, and a last 12-month average of 41.

Balance Sheet and Credit Facility

During the month, $30.0 million was repaid on the Company’s credit facility, leaving

the total balance outstanding at $55.0 million. Borrowing at the HarbourVest fund level amounted to $389.6 million, a decrease of $12.2 million from the previous month. HVPE’s cash and cash equivalents ($138.4 million) and available credit ($545.0 million) totalled $683.4 million.

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

[/two_third]

HVPE Investors Video

Click here for Harbourvest Investor videos and news