HVPE (LON:HVPE) is a constituent of the FTSE 250 and provides a complete private equity solution for public investors by managing the portfolio through four phases of the private equity cycle to create value: Commitments, Investment, Growth, and Realisation (Mature).
COMMITMENTS
HVPE commits capital to newly-formed HarbourVest funds during their fundraising process and co-invests alongside HarbourVest funds in certain co-investments. The HarbourVest funds to which HVPE commits then make primary fund commitments, secondary investments, and direct co-investments across geographies and venture, buyout, and debt strategies. This forward-looking strategy enables HVPE to be fully invested throughout the market cycle.
INVESTMENT PHASE
As the newer and developing HarbourVest funds in the HVPE portfolio commit to new investments, HVPE invests capital in the HarbourVest funds to build the portfolio. Based on the scope of the HarbourVest fund investments, the HVPE portfolio is highly diversified by stage, phase, geography, and strategy.
GROWTH PHASE
HVPE’s HarbourVest funds create value in their portfolios as the investments develop over time. HVPE’s NAV growth is driven by changing valuations for privately-held and publicly-traded investments, as well as liquidity events within the portfolio (including M&A transactions, IPOs, and recapitalisations).
MATURE PHASE
As HVPE’s maturing HarbourVest fund investments achieve liquidity and create proceeds, the HarbourVest funds distribute cash realisations to HVPE. These realisations can then be used to fund the new HarbourVest fund commitments and investments.
Further information can be seen at hvpe.com
Ed Warner OBE (Chair & Ind. NED): Chairman Air Partner PLC, Blackrock Energy & Resources Income Trust & Grant Thornton. Ex Chair Standard Life Private Equity Trust, Panmure Gordon.
Peter Wilson (NED): Member of HarbourVest’s Executive Management Committee and co-leads HarbourVest’s secondary investment activity in Europe.
Steven Wilderspin (Ind NED & Chair or Risk & Audit Committee): Chair of Risk Committee of London-listed Blackstone / GSO Loan Financing Limited. Ex Director 3i Infrastructure plc.
Carolina Espinal (NED): Carolina Espinal is an MD in the Primary team at HarbourVest Partners.
Francesca Barnes (Ind NED): Previous senior positions at UBS & Chase Manhattan. Recently NED for Electra Private Equity PLC.
Elizabeth Burne (NED): 20yrs at PwC in Channel Islands & Australia
Anulika Ajufo (NED)
Five Minute Pitch TV is hosting investor meetings for FTSE 250 PE firm, HarbourVest Global Private Equity (‘HVPE’). The meetings …
RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2023 NAV per share reaches new high, with well-diversified portfolio demonstrating significant …
HVPE ESTIMATED NAV PER SHARE UPDATE AT 30 SEPTEMBER 2023 Estimated NAV per share of $49.31 (£40.42); down 0.8% in …
FTSE 250 Private Equity Fund HVPE has reported an increase in estimated NAV per share. Estimated NAV per share of …
FTSE 250 Private Equity Fund HVPE has reported an increase in estimated NAV per share. Estimated NAV per share of …
FTSE 250 HVPE (LON: HVPE) provides a complete private equity solution for public investors, managing the portfolio through four phases …
| Summary of NAV | 31 Jan 2023 US$~m | 31 Jan 2022 US$~m |
|---|---|---|
| Net Asset Value | 3,838 | 3,922 |
| NAV Per Share | $48.52 | 49.11 |
| Balance Sheet | 31 Jan 2023 US$~m | 31 Jan 2022 US$~m |
|---|---|---|
| Investments | 3,616 | 3,633 |
| Cash & Equivalents | 313 | 284 |
| Total Assets | 3,839 | 3,925 |
| NAV Performance | Oct 2023 | Sep 2023 | Aug 2023 | July 2023 | June 2023 | May 2023 | Apr 2023 | Mar 2023 |
|---|---|---|---|---|---|---|---|---|
| Monthly NAV Estimate (US $~m) | 3837 | 3856 | 3897 | 3889 | 3865 | 3819 | 3827 | 3830 |
| Monthly estimated NAV per share (US $) | 49.08 | 49.31 | 49.70 | 49.60 | 49.22 | 48.27 | 48.38 | 48.42 |
| Shares outstanding (~m) | 79.9 | 79.9 | 79.9 | 79.9 | 79.9 | 79.9 | 79.9 | 79.9 |
Investors Chronicle (Sep 2023): IC Top 50 Funds 2023: Alternatives
HarbourVest is enormously diversified thanks to the fact that it invests in different private equity funds, resulting in a large number of underlying holdings. That lessens the impact of any company-specific problems, but likewise reduces the gains that can be made when one particular business is doing well. It’s also harder to analyse such a large and widely spread portfolio, compared with those private equity funds that invest directly and back a small selection of companies.
We still like this as a play on private equity with some of the stress removed, with the caveat that HVPE has lagged many of its peers in the past year. It remains a steady, well-constructed portfolio with a focus on an asset class that should offer good returns over time. HVPE shares also trade on one of the biggest discounts in the sector, 42.2 per cent at the end of August.
Shares Magazine (June 2023): Is this an opportune moment to pounce on private equity trusts?
“HarbourVest Global Private Equity (HVPE) This trust’s wide NAV discount shows a ‘clear disconnect between the resilient portfolio returns versus risk perception’ according to broker Peel Hunt, which sees scope for a recovery in the rating. HarbourVest, which invests in private companies and portfolios of private companies through funds managed by HarbourVest Partners, has a track record of materially outperforming public markets through the cycle and has generated 10 year annualised total returns of 13%. Ultra-diversified with over 1,000 underlying company holdings, the fund’s spread of exposure reduces risk and should continue to help support its NAV in these testing times. HarbourVest buys back shares but it doesn’t pay a dividend, electing instead to reinvest realisation proceeds into new investments. At last count, cash and cash equivalents of $310 million and available credit $600 million totalled $910 million, giving it plenty of firepower for deals, although the large investment pipeline (unfunded commitments) as of 31 May totalled $2.7 billion. In the unlikely scenario the trust has a period of negative cash flow with exits continuing at low levels, it could have to sell assets on the secondary market, which is a risk to consider.”
