HVPE: March NAV Update

25th April 2022 | HarbourVest Global Private Equity Limited

HVPE ESTIMATED NAV PER SHARE UPDATE AT 31 MARCH 2022

  • Estimated NAV per share of $48.08 (£36.59); up 5.5% in US dollar terms over the month
    • 12% of Investment Portfolio (public company holdings) valued at 31 March 2022
    • 59% valued at 31 December 2021, with remainder valued at 30 September 2021
  •  Positive cash flow during the month, with a net $37 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 March 2022 following the flash announcement made on 19 April 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 March, HVPE committed a total of $319.5 million to three HarbourVest-managed funds. This included two additional commitments: the first, $250.0 million to a US-focused

buyout fund of funds, and the second, $35.0 million to a US-focused small buyout fund of funds. There was also a commitment of $34.5 million to a new secondary co-investment transaction. At 31 March 2022, HVPE’s Investment Pipeline (unfunded commitments) totalled $2.68 billion. The new commitments, alongside capital funded and foreign exchange rate movements, contributed to a net increase of $244.4 million from the prior month.

Investment

During March, HVPE invested $74.9 million into HarbourVest funds (compared to $24.3 million in February 2022). The largest individual investment during the month was made to a 2020 vintage international multi-strategy fund of funds.

Growth

At 31 March 2022, HVPE’s estimated NAV per share was $48.08 (£36.59), compared to the 28 February 2022 estimate of $45.58 (£33.97). This represents a 5.5% increase in US dollar terms over the previous month. It is important to note that the 31 March 2022 NAV per share is based predominantly on 31 December 2021 valuations (see breakdown below). The increase in the March NAV per share over the previous month resulted mainly from year-end 2021 valuation gains from the fund of funds.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 11% actual 31 March 2022 (representing the public companies in the portfolio); 59% actual 31 December 2021, and 30% 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 March 2022.

Realisation

HVPE received distributions of $112.2 million from HarbourVest funds during March 2022 (compared to $20.9 million in February 2022). The largest source of proceeds came from a 2018 vintage US-focused venture fund of funds. During March, there were a total of 23 M&A transactions and IPOs across HVPE’s underlying portfolio; this was the same monthly total as February 2022, and compares to a last 12-month average of 42.

Balance Sheet and Credit Facility

At 31 March 2022, HVPE had the full $700.0 million available on its credit facility. Borrowing at the HarbourVest fund level amounted to $489.3 million, an increase of $51.3 million from the previous month. HVPE’s cash and cash equivalents ($317.0 million) and available credit ($700.0 million) totalled $1.02 billion.

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