HVPE: NAV Update

21st July 2022 | HarbourVest Global Private Equity Limited

HVPE ESTIMATED NAV PER SHARE UPDATE AT 30 JUNE 2022

  • Estimated NAV per share of $48.22 (£39.59); up 1.5% in US dollar terms over the month
    • 8% of Investment Portfolio (public company holdings) valued at 30 June 2022
    • 90% valued at 31 March 2022, with remaining 2% valued at 31 December 2021
  • Positive cash flow during the month, with a net $9 million received

HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a closed-end investment company, today announces its estimated Net Asset Value (“NAV”) at 30 June 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 June, HVPE committed $115 million to two HarbourVest-managed funds. This included additional commitments of $25 million to a global direct co-investment fund and $90 million to an Asia-focused multi-strategy fund of funds. One of HVPE’s earlier commitments to a secondary co-investment transaction was scaled back by $10 million to $25 million during the month. At 30 June 2022, HVPE’s Investment Pipeline (unfunded commitments) totalled $2.8 billion. The new commitments, alongside foreign exchange rate movements, and minus capital funded, contributed to a net increase of $42 million from the prior month.

Investment

During June, HVPE invested $62 million into HarbourVest funds (compared to $53 million in May 2022). The largest individual investment during the month was made to a 2021 vintage global multi-strategy fund of funds.

Growth

At 30 June 2022, HVPE’s estimated NAV per share was $48.22 (£39.59), compared to the 31 May 2022 estimate of $47.49 (£37.68). This represents a 1.5% increase in US dollar terms over the previous month. The growth over the period came from an increase in the value of the funds of funds as the remainder were updated with Q1 2022 valuations (see breakdown below).

The valuation breakdown of the HVPE portfolio as reported here is as follows: 8% actual 30 June 2022 (representing the public companies in the portfolio); 90% actual 31 March 2022, and 2% actual 31 December 2021. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cashflows, and any known material events to 30 June 2022.

Realisation

HVPE received distributions of $71 million from HarbourVest funds during June 2022 (there were zero distributions in May 2022). The largest source of proceeds came from a 2015 vintage US-focused buyout fund of funds. During June, there were a total of 28 M&A transactions and IPOs across HVPE’s underlying portfolio compared to May’s 18, and a last 12-month average of 33.

Balance Sheet and Credit Facility

At 30 June 2022, HVPE had the full $700 million available on its credit facility. Borrowing at the HarbourVest fund level amounted to $540 million, an increase of $50 million from the previous month. HVPE’s cash and cash equivalents ($250 million) and available credit ($700 million) totalled $950 million.

Additional detail about HVPE’s NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 30 June 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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