HVPE: NAV Update

18th March 2022 | HarbourVest Global Private Equity Limited

HVPE ESTIMATED NAV PER SHARE UPDATE AT 28 FEBRUARY 2022

  • Estimated NAV per share of $45.58 (£33.97); down 0.7% in US dollar terms over the month
    • 12% of Investment Portfolio (public company holdings) valued at 28 February 2022
    • 4% valued at 31 December 2021, with remainder valued at 30 September 2021
  • Update on geographical diversification of Investment Portfolio

HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a closed-end investment company, today announces its estimated Net Asset Value (“NAV”) at 28 February 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 February, no new commitments were made to HarbourVest funds. At 28 February 2022, HVPE’s Investment Pipeline (unfunded commitments) totalled $2.43 billion. This represents a net decrease of $24.3 million from the prior month, based on capital funded and foreign exchange rate movements.

Investment

During February, HVPE invested $24.3 million into HarbourVest funds (compared to $58.0 million in January 2022). The largest individual investment during the month was made to a 2018 vintage US-focused fund of funds.

Growth

At 28 February 2022, HVPE’s estimated NAV per share was $45.58 (£33.97), compared to the 31 January 2022 estimate of $45.89 (£34.12). This represents a 0.7% decrease in US dollar terms over the previous month. It is important to note that the 28 February 2022 NAV per share is still based predominantly on 30 September 2021 valuations (see breakdown below). The decrease in the February NAV per share 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: 12% actual 28 February 2022 (representing the public companies in the portfolio); 4% actual 31 December 2021, and 84% 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 28 February 2022.

Realisation

HVPE received $20.9 million of distributions from HarbourVest funds during February 2022 (compared to $46.6 million in January 2022). The largest source of proceeds came from a 2008 vintage international fund of funds. During February, there were a total of 23 M&A transactions and IPOs across HVPE’s underlying portfolio compared to January’s 18, and a last 12-month average of 45.

Balance Sheet and Credit Facility

At 28 February 2022, HVPE had the full $700.0 million available on its credit facility. Borrowing at the HarbourVest fund level amounted to $438.0 million, a decrease of $11.7 million from the previous month. HVPE’s cash and cash equivalents ($280.4 million) and available credit ($700.0 million) totalled $980.4 million.

Additional detail about HVPE’s NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 28 February 2022.

Geographical Diversification of Investment Portfolio

In light of the current crisis in Ukraine, HVPE would like to remind investors of the portfolio’s broad geographical diversification. At 28 February 2022 this stood at: US 61%, Europe 21%, Asia 15%, and Rest of World (“RoW”) 3%. Additionally, in November 2021 the Board agreed to reduce HVPE’s strategic asset allocation target for RoW from 5% to zero.

HVPE can also confirm that it has immaterial exposure to Russian, Ukrainian and Belarusian companies*, all of which are classified under RoW. In total, these represented 0.18% of HVPE’s NAV at 28 February 2022. Please note that the majority of this exposure remains valued at 30 September 2021, with approximately one third (the public companies) valued at 28 February 2022.

The Investment Manager, HarbourVest Partners, has been investing in the global private markets for 40 years through a variety of economic cycles and global crises. It continues to pay close attention to the military action taken by Russia in Ukraine while monitoring both the macroeconomic impact and the international response.

As ever, the 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.

*This includes companies based in the country, according to information reported by the underlying manager. This does not reflect companies that derive revenues from these countries, nor those with a portion of their team or operations in the region.

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