HarbourVest Global Private Equity Limited (LON: HVPE), a FTSE 250 listed private equity , has today reported its annual results, demonstrating resilience in the face of a challenging market environment. The company experienced a marginal decrease of 1.2% in NAV per share, whiccompanyh now stands at $48.52 per share. Notably, this decline outperformed the FTSE All-World Total Return Index, which saw a drop of 7.3%. HVPE’s diversified portfolio saw gains across infrastructure and real assets, credit, and small to mid-cap buyouts, partially offsetting declines in venture and growth equity, as well as large buyouts. This performance highlights the benefits of a well-structured and diversified investment approach.

To provide further insights into HVPE’s results, Richard Hickman, Managing Director at HVPE, discusses the trust’s performance in the video below

 

Highlights – Year to 31 January 2023 

Resilient net asset value (“NAV”) per share, demonstrating benefits of well-diversified portfolio

• NAV per share fell 1.2% to $48.52 (31 January 2022: $49.11) vs FTSE All-World Total Return (“FTSE AW TR”) Index fall of 7.3%.
• Gains across infrastructure and real assets, credit, and small to mid-cap buyouts partially offset declines in venture and growth equity, and large buyouts, highlighting the benefits of diversification.
• Analysis across a large proportion of portfolio exits in the period showed a weighted average uplift to pre-transaction carrying value of 31%.

NAV per share outperformance of public markets continues

• Outperformance of the FTSE AW TR Index of 6.1% over the financial year, and 5.7% annualised over the past ten years.
• Absolute NAV per share return of 289% over the ten years to 31 January 2023.

Net investor over the period

• A net $56 million cash invested (2022: net $320 million cash received).
  •  Total of $532 million cash distributions received (2022: $835 million).
  • Total of $588 million capital calls paid (2022: $515 million).
• Buybacks totalling $18.8 million (£17.0 million) completed during the year.

Balance sheet remains strong

• $198 million of cash on the balance sheet at 31 January 2023 (2022: $284 million)
• Credit facility increased by $100 million to $800 million in August 2022, with new lender added to syndicate.
• New commitments of $940 million over period (2022: $1.4 billion) with total investment pipeline of $2.8 billion (2022: $2.4 billion) at financial year end.
• Latest balance sheet update can be found in the Monthly Update for 30 April 2023.

New share buyback launched

• The Board and Investment Manager recently conducted a review of the case for share buybacks using its established framework.
• Following this, the Board will conduct another share buyback and intends to repurchase $25 million of shares
• The Board’s core presumption continues to be that, in normal conditions, reinvesting capital into new private markets opportunities, should provide a better outcome for shareholders over the long term.

For the full announcement and annual report, please visit HVPE’s investor website