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Overview

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

Directors

  • Sir Michael Bunbury (Chairman): Chair of BH Global Ltd, Ex Director of Foreign & Colonial Investment Trust plc & Invesco Perpetual Select Trust plc.
  • 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.
  • Alan C. Hodson (Ind. NED): Ex global head of equities for SG Warburg & member of executive committee for UBS AG Group Managing Board.
  • Andrew W. Moore (Ind NED): Ex head of corporate trust & fund administration for RBS in Guernsey.
  • 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.
  • Edmond Warner: Chairman Air Partner PLC, Director Blackrock Energy & Resources Income Trust. Ex Chair Standard Life Private Equity Trust, Panmure Gordon & Grant Thornton

Financials

Summary of NAV31 Jan 2019
US$~m
31 Jan 2018
US$~m
Net Asset Value19241713.3
NAV Per Share24.0921.46
Balance Sheet31 Jan 2019
US$~m
31 Jan 2018
US$~m
Investments1,760.21,452.2
Cash & Equivalents156257
Total Assets1,9261,716
NAV PerformanceJune 2019May 2019Apr 2019Mar 2019Feb 2019Jan 2019
Monthly NAV Estimate (US $~m)1995.11971.81920.91917.61872.51860.4
Monthly estimated NAV per share (US $)24.9824.6924.0524.0123.4523.30
Shares outstanding (~m)79.979.979.979.979.979.9

 

Peer Group

  • Electra Private Equity (LSE: ELTA): investment trust targeting return on equity of 10-15% PA over the long-term by investing in PE
  • NB Private Equity Partners Ltd (LSE: NBPE) closed-end fund – invests across PE asset class, geography, industry, vintage year & sponsor.
  • Pantheon International Plc (LSE: PIN) closed-end fund. Invests in PE funds and directly in private companies.
  • Aberdeen Private Equity  (LSE:APEF) closed-ended investment company. Invests in PE funds.
  • Standard Life Euro Private Equity (LSE: SLPE) primary fund investing, secondary opportunities and direct co-investment.
  • ICG Enterprise Trust (LSE:ICGT) Invests in private equity funds & directly into private companies

Major Shareholders

State Teachers Retirement System of Ohio – 13.57%
Quilter – 13.05%
M & G IM – 10.14%
Washington State Investment Board – 5.73%
City of Edinburgh Council – 5.72%
Lazard AM – 4.39%
Schroders – 3.89%
Legal & General – 2.20%

Macro Indicators

Daily Telegraph (June 2017): “Private equity investment trusts look for fast-growing firms in their early stages before their shares are listed on the stock market. These trust were hit heavily in the financial crisis with many seeing their valuations plummet. This scared many investors off, but gradually the sector has picked up. Discounts on these trusts…have been narrowing in recent months and some analysts expect them to narrow further.”

Media Coverage

The Motely Fool (May 2019)
“Why I would buy shares in this FTSE 250 champion.”

Telegraph (May 2019)
“You may have heard of a fund of funds, but have you ever heard of a fund of funds of funds? HarbourVest Global Private Equity (HVPE) owns stakes in unlisted companies through 46 different HarbourVest funds. These funds invest in private businesses, as well as in other venture capital funds. As a result, investors are able to tap into the early stages of growth of more than 8,000 unlisted firms, including ride-sharing app Uber.”

Investors Chronicle (Jan 2018)
“Private Equity makes a surprising alternative”

Shares Magazine (June 2017)
“The private equity sector is awash with cash as funds offload holdings in investee companies and investors enthusiastically put up new money in the hope of getting exposure to the next big thing.”

Broker Coverage

Jefferies (May 2017)
“FY17 represented a more straightforward year for HVPE after the shareholder enfranchisement, LSE listing and step-up in commitments delivered in the previous year. While the NAV made good progress during the year, there is increasing evidence the former of these actions have allowed HVPE to fully participate in the recent re-rating of the LPE sector.”

Winterfloods (May 2017)
“HVPE  has come a long way since its Euronext listing almost ten years ago. From being on the periphery of the listed private equity sector it is now a mainstay, offering size, increasing liquidity and highly diversified private equity exposure.”

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