HarbourVest Global Private Equity Limited (HVPE), a diversified FTSE 250 PE investor, has announced its estimated net asset value (NAV) as of February 28, 2023. The NAV is at $48.27 (£40.15) per share and has been adjusted for foreign exchange movements, cash flows, and any known material events up to that date. While the figure represents a 0.3% decrease in US dollar terms compared to the previous month, HVPE has managed its portfolio through the private equity cycle’s four phases: commitments, investment, growth, and realization.

HVPE overview

 

Full report

Estimated NAV per share of $48.27 (£40.15); down 0.3% in US dollar terms over the month
7% of Investment Portfolio valued at 28 February 2023 (representing the public companies in the portfolio)
6% valued at 31 December 2022, with the remaining (87%) valued at 30 September 2022
A net $44 million was invested in February 2023
HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a FTSE 250 investment company with global exposure to private companies, managed by HarbourVest Partners, today announces its estimated Net Asset Value (“NAV”) at 28 February 2023.

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 February 2023, no new commitments were made to HarbourVest funds. HVPE’s Investment Pipeline (unfunded commitments) decreased by $67 million from the prior month, following capital called for investments, as highlighted below, and minor foreign exchange movements. The Investment Pipeline totalled $2.7 billion at 28 February 2023.

Investment

During February 2023, HVPE invested $67 million into HarbourVest funds (compared to $6 million in January 2023). The largest individual investment during the month was made to a 2021 vintage US-focused buyout fund of funds.

Growth

At 28 February 2023, HVPE’s estimated NAV per share was $48.27 (£40.15), compared to the 31 January 2023 estimate of $48.43 (£39.31). This represents a 0.3% decrease in US dollar terms over the previous month and was mainly driven by unfavourable FX movement as well as valuation declines from the public company holdings in the portfolio.

The valuation breakdown of the HVPE portfolio as reported here is as follows: 7% actual 28 February 2023 (representing the public companies in the portfolio), 6% actual 31 December 2022 and 87% actual 30 September 2022. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cash flows, and any known material events to 28 February 2023. This compares to 7% actual 31 January 2023 (representing the public companies in the portfolio), 3% actual 31 December 2022 and 90% actual 30 September 2022, used in the 31 January 2023 estimated NAV per share calculation.

Realisation

HVPE received distributions of $22 million from HarbourVest funds during February 2023 (compared to $1 million in January 2023). It is important to note that $18 million (81%) of the proceeds came from the redemption of part of HVPE’s Limited Partner interest in Adelaide, the HVPE-seeded global infrastructure and real assets vehicle, as a result of its planned conversion into a permanent capital vehicle. Details of this were announced in August 2022 and can be found in the RNS here: https://www.hvpe.com/media/eldn5ah0/31-july-2022-estimated-net-asset-value.pdf.

There were five other HarbourVest fund distributions during the month, the largest coming from a 2012 vintage global secondaries fund. During February 2023, there were a total of 15 M&A transactions and IPOs across HVPE’s underlying portfolio, compared to January’s total of 16, and a last 12-month average of 20. These were broken down into 14 M&A transactions and one IPO.

Balance Sheet and Credit Facility

At 28 February 2023, HVPE had the full $800 million available on its credit facility. Borrowing at the HarbourVest fund level amounted to $473 million, a decrease of $44 million from the previous month. HarbourVest works with a broadly diversified group of financial institutions to provide its funds with deposit accounts and lines of credit. Despite recent events in the banking sector, all HarbourVest-managed funds are able to access their deposit accounts and lines of credit in a business-as-usual manner. HVPE has no additional liability for the HarbourVest fund-level borrowings beyond its uncalled commitments to each fund.

Additional detail about HVPE’s NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 28 February 2023.

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.

Below is an animated film which highlights the key points from the recent half year results