HVPE: Net Asset Value up 3.4% in November
HVPE ESTIMATED NAV PER SHARE INCREASES 3.4% IN NOVEMBER
- Estimated NAV per share of $45.71 (£34.37); up 3.4% over the month
- 15% of Investment Portfolio (public company holdings) valued at 30 November 2021
- 43% valued at 30 September 2021, with remainder valued at 30 June 2021
- Positive cash flow during the month with a net $81.3 million received
- Strategic Asset Allocation targets revised, with increases to both Asia and Europe through removal of Rest of World target
HarbourVest Global Private Equity Limited , a closed-end investment company, today announces its estimated Net Asset Value at 30 November 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 November, HVPE committed a total of $285.0 million to four HarbourVest- managed funds. This included an additional commitment of $25.0 million to US-focused small buyout fund of funds, $35.0 million to global direct co-investment fund, $75.0 million to a US-focused venture fund of funds, and $150.0 million to US-focused buyout fund of funds. The new commitments, alongside foreign exchange rate movements, contributed to a net increase of $233.9 million in HVPE’s Investment Pipeline (unfunded commitments), which totalled $2.06 billion at 30 November 2021.
During November, HVPE invested $50.5 million into HarbourVest funds (compared to $3.4 million in October 2021). The largest individual investment during the month was made to a 2015 vintage US-focused venture fund of funds.
At 30 November 2021, HVPE’s estimated NAV per share was $45.71 (£34.37), compared to the 31 October 2021 estimate of $44.20 (£32.30). This represents an uplift of 3.4% in US dollar terms over the previous month, driven largely by gains in the fund of funds following receipt of a large portion of 30 September valuations.
The valuation breakdown of the HVPE portfolio as reported here is as follows: 15% actual 30 November 2021 (representing the public companies in the portfolio); 43% actual 30 September 2021, and 42% actual 30 June 2021. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cashflows, and any known material events to 30 November 2021.
HVPE received $131.8 million of distributions from HarbourVest funds during November 2021 (compared to $32.1 million in October 2021). The largest source of proceeds came from a 2015 vintage US-focused buyout fund of funds. During November, there were a total of 31 M&A transactions and IPOs across HVPE’s underlying portfolio compared to October’s 46, and a last 12-month average of 46.
Strategic Asset Allocation
In November, the Board approved revisions to the Company’s five-year portfolio construction (Strategic Asset Allocation) targets. Adjustments were made to the geographical targets and included: an increase to Europe from 18% to 20%; an increase to Asia Pacific from 17% to 20%, and removal of the Rest of World allocation (5%). All other targets remain unchanged.
Balance Sheet and Credit Facility
At 30 November, HVPE had the full $600.0 million available on its credit facility. Borrowing at the HarbourVest fund level amounted to $412.2 million, an increase of $34.9 million from the previous month. HVPE’s cash and cash equivalents ($253.0 million) and available credit ($600.0 million) totalled $853.0 million.
Additional detail about HVPE’s NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 30 November 2021.
Below is an animated film which highlights the key points from the half year results
Harbourvest Investors Video