HVPE: NAV Update

18th February 2022 | HarbourVest Global Private Equity Limited

HVPE ESTIMATED NAV PER SHARE UPDATE AT 31 JANUARY 2022

  • Estimated NAV per share of $45.89 (£34.12); down 1.9% in US dollar terms over the month
    • 13% of Investment Portfolio (public company holdings) valued at 31 January 2022
    • 1% valued at 31 December 2021, with remainder valued at 30 September 2021

HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a closed-end investment company, today announces its estimated Net Asset Value (“NAV”) at 31 January 2022.

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 January, HVPE committed a total of $17.0 million to two secondary co-investment transactions, split $6.2 million and $10.8 million respectively. At 31 January 2022, HVPE’s Investment Pipeline (unfunded commitments) totalled $2.5 billion. This represents a net decrease of $41.5 million from the prior month, based on capital funded and foreign exchange rate movements.

Investment

During January, HVPE invested $58.0 million into HarbourVest funds (compared to $78.4 million in December 2021). The largest individual investment during the month was made to a 2015 vintage US-focused fund of funds.

Growth

At 31 January 2022, HVPE’s estimated NAV per share was $45.89 (£34.12), compared to the 31 December 2021 estimate of $46.80 (£34.58). This represents a 1.9% decrease in US dollar terms over the previous month. It is important to note that the 31 January 2022 NAV per share is still based predominantly on 30 September 2021 valuations (see breakdown below). The decrease in the January NAV was driven largely by declines in the value of public company holdings within the fund of funds portfolio.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 13% actual 31 January 2022 (representing the public companies in the portfolio); 1% actual 31 December 2021, 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 January 2022.

Realisation

HVPE received $46.6 million of distributions from HarbourVest funds during January 2022 (compared to $125.0 million in December 2021). The largest source of proceeds came from a 2015 vintage US-focused fund of funds. During January, there were a total of 18 M&A transactions and IPOs across HVPE’s underlying portfolio compared to December’s 46, and a last 12-month average of 46.

Balance Sheet and Credit Facility

At 31 January, HVPE had the full $700.0 million available on its credit facility. Borrowing at the HarbourVest fund level amounted to $449.7 million, an increase of $4.3 million from the previous month. HVPE’s cash and cash equivalents ($284.0 million) and available credit ($700.0 million) totalled $984.0 million.

Additional detail about HVPE’s NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 31 January 2022.

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.

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