HarbourVest Global Private Equity (LSE: HVPE) reported annual results showing continued growth in net asset value despite a challenging backdrop for private equity exits and listed private equity valuations.

NAV per share increased 7.3% over the year to $54.17, reflecting underlying growth across the portfolio and continued value creation within HarbourVest’s global private equity programme.

The results come after a period in which higher interest rates and a slower market for mergers, acquisitions and stock market listings have reduced exit activity across the private equity industry. Those conditions have weighed on many listed private equity trusts, including HVPE, whose shares continue to trade at a significant discount to NAV.

Despite that backdrop, HVPE’s portfolio value increased to $4.4 billion, supported by growth within underlying companies and continued distributions from mature investments.

A key theme discussed by management is the gradual reopening of exit markets. After two years of subdued activity, private equity managers are reporting increased levels of merger and acquisition activity, while investors are also watching closely for a return of larger IPOs.

Several well-known private companies held within the wider HarbourVest ecosystem, including fintech businesses such as Revolut and Klarna, are frequently cited as potential future listing candidates should public market conditions continue to improve.

Liquidity remains a major focus across the private equity sector. During the year, HVPE increased its credit facility to $1.2 billion, providing additional flexibility to meet future commitments and take advantage of investment opportunities as they arise.

The trust also continued to repurchase its own shares, taking advantage of the substantial discount between the share price and underlying asset value. Share buybacks can enhance NAV per share for continuing shareholders when shares are repurchased at a discount.

For long-term investors, the central question remains whether private equity can continue to outperform public markets. HarbourVest’s view is that access to a globally diversified portfolio of private businesses, managers and vintages remains one of the most effective ways to capture long-term value creation away from public markets.