HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a FTSE 250 investment company with global exposure to private companies, managed by HarbourVest Partners, announces a business update ahead of its Annual General Meeting (AGM) at 1:00PM today.

NAV remains resilient; Long-term outperformance of public markets

• As announced on 24 June 2024, estimated NAV per share was $51.37 (£40.32); representing an increase of 3.4% in US dollar terms year to date*
• Introduction of a revised and expedited valuation process with respect to the HarbourVest funds, which improves the timeliness of NAV per share updates
• Over the 10 years to 31 May 2024, HVPE delivered growth in NAV per share of 248%, while the FTSE All-World Total Return (FTSE AW TR) Index returned 137% (USD)
• Reflects HVPE’s proven investment strategy, the benefits of diversification and the quality of the underlying portfolio.

New and extended credit facility

• In June, HVPE secured a new and extended revolving credit facility on highly competitive terms
• Size increase from $800m to $1.2bn, providing additional working capital headroom and enabling greater flexibility in capital allocation decisions, to the benefit of shareholders.

Distribution pool and capital allocation update

• Distribution Pool initiated 1 February 2024, ring fencing capital for shareholder distributions
• Total amount of cash allocated to the Distribution Pool across the two calendar years 2024 and 2025 projected to be between $150m and $250m
• As at 30 June 2024 the balance in the Distribution Pool was $40m. Contributions to the Pool since 1 February totalled $79.1m
• Since the Board recommenced buybacks in June, HVPE has been active buying back shares on 19 out of 25 trading days**
• Since share buybacks originally began in September 2022, 3.5m shares have been repurchased for a total consideration of $99m**.

Positive outlook

• Investment and macroeconomic environment continue to improve
• Exits remains above the 12-month average, with IPOs and M&A activity expected to continue recovering through 2024.

*Financial year 31st January 2024 estimated NAV per share to 31 May 2024 estimated NAV per share.

*As at 10th July 2024.

Fully Independent Board

• With effect from the July 2024 AGM, HVPE’s Board will become fully independent of the Investment Manager when HarbourVest Managing Director Carolina Espinal steps down as a Director
• The Company will continue to benefit from Carolina’s extensive private equity investment experience as both Carolina Espinal and Richard Hickman joined HVPE’s Investment Committee with effect from 1 February 2024.

Ed Warner, Chair of HVPE, said:

“The Board has made significant progress on a number of fronts over the past year, most notably the initiation of our Distribution Pool to improve future returns to shareholders. We are pleased that our Net Asset Value has remained resilient in challenging equity markets and the share price discount has started to narrow. We hope this trend persists as shareholders benefit from the actions we have taken to optimise returns throughout the cycle.

We are confident that the environment in which we operate will continue to improve, with increasing exit activity and distribution levels as the year progresses.”

Below is an interview with Chairman Ed Warner & Managing Director, Richard Hickman