HarbourVest Global Private Equity Limited (HVPE) has agreed the sale of a $300m portfolio of private equity fund interests as it seeks to strengthen its balance sheet and support shareholder returns.
The company has entered into binding agreements to divest five positions in buyout-focused HarbourVest funds at a blended discount to net asset value of about 6 per cent. Net proceeds of $300m will be received in two tranches, with approximately $138m due in March and the balance payable in December 2026, reflecting a phased approach to capital recycling.
In line with HVPE’s distribution pool framework, around 30% of the proceeds (roughly $90m) will be earmarked for returns to shareholders, primarily through share buybacks. The board has increasingly used buybacks as a tool to address the trust’s persistent discount to net asset value.
The transaction will also reduce HVPE’s future obligations, cutting unfunded commitments by $105m and lowering underlying fund-level borrowings by $28m. The assets being sold represent about 7.7% of the trust’s net asset value as at the end of June.
HVPE, which is managed by HarbourVest Partners, has come under pressure from investors over its level of leverage and the scale of its share price discount. The board has responded with a series of measures aimed at improving liquidity, simplifying the portfolio and sharpening capital allocation.
The chair said the sale demonstrated a proactive approach to portfolio management and would leave the trust better positioned to pursue new investment opportunities while reinforcing its financial position.
The move comes amid broader scrutiny of the listed private equity sector, where shareholders have increasingly called for clearer strategies to unlock value and narrow discounts to asset values.
Below is a video which explains the structure and USP’s behind HarbourVest Global Private Equity proposition. This includes interviews with members of HVPE’s board and management team