HarbourVest Global Private Equity, a closed-end investment company, today announces its estimated Net Asset Value (“NAV”) at 30 November 2021.
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
During November, HVPE committed a total of $285.0 million to four HarbourVest- managed funds. This included an additional commitment of $25.0 million to US-focused small buyout fund of funds, $35.0 million to global direct co-investment fund, $75.0 million to a US-focused venture fund of funds, and $150.0 million to US-focused buyout fund of funds. The new commitments, alongside foreign exchange rate movements, contributed to a net increase of $233.9 million in HVPE’s Investment Pipeline (unfunded commitments), which totalled $2.06 billion at 30 November 2021.
During November, HVPE invested $50.5 million into HarbourVest funds (compared to $3.4 million in October 2021). The largest individual investment during the month was made to a 2015 vintage US-focused venture fund of funds.
At 30 November 2021, HVPE’s estimated NAV per share was $45.71 (£34.37), compared to the 31 October 2021 estimate of $44.20 (£32.30). This represents an uplift of 3.4% in US dollar terms over the previous month, driven largely by gains in the fund of funds following receipt of a large portion of 30 September valuations.
The valuation breakdown of the HVPE portfolio as reported here is as follows: 15% actual 30 November 2021 (representing the public companies in the portfolio); 43% actual 30 September 2021, and 42% actual 30 June 2021. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cashflows, and any known material events to 30 November 2021.
HVPE received $131.8 million of distributions from HarbourVest funds during November 2021 (compared to $32.1 million in October 2021). The largest source of proceeds came from a 2015 vintage US-focused buyout fund of funds. During November, there were a total of 31 M&A transactions and IPOs across HVPE’s underlying portfolio compared to October’s 46, and a last 12-month average of 46.
Strategic Asset Allocation
In November, the Board approved revisions to the Company’s five-year portfolio construction (Strategic Asset Allocation) targets. Adjustments were made to the geographical targets and included: an increase to Europe from 18% to 20%; an increase to Asia Pacific from 17% to 20%, and removal of the Rest of World allocation (5%). All other targets remain unchanged.
Balance Sheet and Credit Facility
At 30 November, HVPE had the full $600.0 million available on its credit facility. Borrowing at the HarbourVest fund level amounted to $412.2 million, an increase of $34.9 million from the previous month. HVPE’s cash and cash equivalents ($253.0 million) and available credit ($600.0 million) totalled $853.0 million.
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