HVPE: NAV up 2% in December

19th January 2022 | HarbourVest Global Private Equity Limited

HVPE ESTIMATED NAV PER SHARE INCREASES 2% IN DECEMBER

  • Estimated NAV per share of $46.80 (£34.58); up 2.4% in US dollar terms over the month
    • 14% of Investment Portfolio (public company holdings) valued at 31 December 2021; with remainder valued at 30 September 2021
    • Positive cash flow during the month with a net $46.6m received
    • New commitments of $512.5m in the month helped raise the Total Commitment Ratio closer to normal levels

 

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

In line with the Investment Manager’s plan to increase the level of new commitments (as communicated in HVPE’s 2021 semi-annual report), during December, HVPE made total new commitments of $512.5 million. This included an additional commitment of $365.0 million to an international multi-strategy fund of funds, an additional commitment of $145.0 million to a global multi-strategy fund of funds and a $2.5 million commitment to a secondary co-investment transaction. The new commitments, alongside foreign exchange rate movements, contributed to a net increase of $434.2 million in HVPE’s Investment Pipeline (unfunded commitments), which totalled $2.5 billion at 31 December 2021.

Investment

During December, HVPE invested $78.4 million into HarbourVest funds (compared to $50.5 million in November 2021). The largest individual investment during the month was made to a 2020 vintage international fund of funds.

Growth

At 31 December 2021, HVPE’s estimated NAV per share was $46.80 (£34.58), compared to the 30 November 2021 estimate of $45.71 (£34.37). This represents an uplift of 2.4% in US dollar terms over the previous month, driven largely by gains in the fund of funds following receipt of the remaining 30 September valuations.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 14% actual 31 December 2021 (representing the public companies in the portfolio); and 86% actual 30 September 2021. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cashflows, and any known material events to 31 December 2021.

Realisation

HVPE received $125.0 million of distributions from HarbourVest funds during December 2021 (compared to $131.8 million in November 2021). The largest source of proceeds came from a 2011 vintage US-focused venture fund of funds. During December, there were a total of 46 M&A transactions and IPOs across HVPE’s underlying portfolio compared to November’s 31, and a last 12-month average of 46.

Balance Sheet and Credit Facility

At 31 December, HVPE had the full $700.0 million available on its credit facility. Borrowing at the HarbourVest fund level amounted to $445.4 million, an increase of $33.2 million from the previous month. HVPE’s cash and cash equivalents ($297.7 million) and available credit ($700.0 million) totalled $997.7 million.

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

Below is an animated film which highlights the key points from the half year results

Harbourvest Investors Video

Click here for Harbourvest Investor videos and news