Monthly Factsheet
30 NOVEMBER 2015
Highlights
HVPE's estimated NAV per share is $16.80, a 1% increase from the 31 October 2015 estimate of $16.65 and a 6% increase from 31 January 2015.
Gearing remains at zero, and the Company holds $184 million of cash on its balance sheet.
The Investment Pipeline of unfunded commitments is $954 million, a $19 million decrease from 31 October.
The Company invested $14 million and received $31 million in realisations during the month.
HVPE's functional currency is the U.S. dollar, and NAV movements are reported in U.S. dollars with a conversion to sterling at the month-end exchange rate.
On 15 December 2015, FTSE Russell announced that HVPE had qualified for inclusion in the FTSE 250 Index.
The Company joined the index at the market close on 17 December 2015.
SUMMARY OF NET ASSET VALUE (in millions except per share and last traded price data) | 30 November 2015 | 31 October 2015 | Change |
Investment Portfolio | $1,153.2 | $1,157.9 | ($4.7) |
Cash and Cash Equivalents | $184.4 | $167.9 | $16.5 |
Debt | - | - | - |
Net Other Assets (Liabilities) | $3.9 | $3.8 | $0.1 |
Estimated NAV | $1,341.5 | $1,329.6 | $11.9 |
Cash + Remaining Available Credit Facility* | $684.4 | $667.9 | $16.5 |
% Invested | 86% | 87% | (1%) |
Commitment Level (Allocated Investment Pipeline)† | 127% | 128% | (1%) |
Rolling Coverage Ratio‡ | 105% | 102% | 3% |
Estimated NAV per Share ($) (79.9 million shares outstanding) | $16.80 | $16.65 | $0.15 |
Share Price ($) (converted from £ at the rate indicated) | $13.01 | $13.07 | ($0.06) |
Foreign Exchange Rate | 1.5056 | 1.5428 | (0.0372) |
Estimated NAV per Share (£) (79.9 million shares outstanding) | £11.16 | £10.79 | £0.37 |
Last Traded Price (LSE) (£) | £8.64 | £8.47 | £0.17 |
Discount to NAV | 23% | 22% | 1% |
Available credit facility reflects amount available subject to most restrictive covenant limit applicable.
† Reflects the Investment Portfolio plus the allocated Investment Pipeline divided by estimated NAV.
‡ Reflects cash plus Available Credit Facility plus projected full year realisations divided by forecast cash investments over the next three years. Note: HVPE shares are also listed on the Euronext in Amsterdam. Trading volume on Euronext is limited.
ESTIMATED SHAREHOLDER BREAKDOWN AT 30 NOVEMBER 2015
• 46% U.S.
HVPE Monthly Factsheet
• 44% U.K.
10% Other
The Private Equity Cycle
HVPE 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. This comprehensive solution is designed to deliver shareholders strong returns over a multi-year investment cycle.
THE PRIVATE EQUITY CYCLE | Month Ended 30 November 2015 | Month Ended 31 October 2015 |
1 / Commitments | - | $40.0 |
New Commitments to HarbourVest Funds | ||
INVESTMENT PIPELINE (UNFUNDED COMMITMENTS) | ||
Allocated | $546.7 | $544.1 |
Unallocated | 407.6 | 428.7 |
Total Investment Pipeline | $954.3 | $972.8 |
2 / Cash Invested in HarbourVest Funds | $14.0 | $17.3 |
3 / NAV Growth (Change In Estimated NAV) | $11.9 | $18.4 |
4 / Realisations Received from HarbourVest Funds | $31.2 | $23.0 |
Commitments and Investment Pipeline
HVPE did not make new commitments to HarbourVest funds during November 2015; meanwhile HVPE's existing HarbourVest fund commitments continued to make new investments.
HVPE's Investment Pipeline (unfunded commitments) of $954.3 million decreased on a net basis by $18.5 million during November based on capital funded and foreign currency movement. Of the total investment pipeline, approxi- mately $546.7 million (57%) has been committed by HarbourVest funds to underlying partnerships.
Cash Invested
During November, HVPE invested $14.0 million mainly in HarbourVest fund-of-funds and a secondary fund (compared to $17.3 million in October).
NAV Growth
At 30 November 2015, HVPE's estimated Net Asset Value (NAV) per share is $16.80, a $0.15 per share increase from the 31 October 2015 estimate of $16.65. This 0.9% increase compares to the MSCI All Country World Index (USD) decrease of 1.0% during November. This change resulted primarily from increasing values for private holdings as the portfolio was revalued to reflect 30 September 2015 results, which were partially offset by negative foreign currency movement and operating expenses of $0.02 per share. During November, the euro depreciated 4.0% against the
U.S. dollar.
Realisations Received
HVPE received $31.2 million in realisations from HarbourVest funds during November (compared to $23.0 million in October), the largest source of which was global secondary fund Dover VIII.
LIQUIDITY EVENTS
During November, there were a total of 42 liquidity events across HVPE's underlying portfolio (compared to 61 in October and a last 12-month average of 43). These included 32 M&A transactions and 10 IPOs. The November 2015 IPOs included:
Venture-backed U.S.-based mobile payment processor Square (SQ), held in the primary fund portfolio via Kleiner Perkins Caufield & Byers and the secondary portfolio via Tiger Global Management
Venture-backed U.S.-based optic communication technology provider Xtera (XCOM), held in the primary fund and secondary portfolios via multiple managers
Buyout-backed Chinese investment bank China International Capital Corporation (3908 HK), held in the secondary and Conversus Capital portfolios via KKR Asia and TPG Asia
HVPE LIQUIDITY EVENTS
Buyout/other IPO
Buyout/other M&A
Venture IPO
Venture M&A
(# of transactions) 60
61
HVPE Monthly Factsheet
40
42
20
0
Buyout-backed Japanese telemarketing firm BellSystems 24
October 2015
November 2015
(6183), held in the primary fund and Conversus Capital portfolios via Bain Capital 2
Inclusion in the FTSE All Share Index
On 15 December 2015, FTSE Russell announced that HVPE had qualified for inclusion in the FTSE 250 Index. The shares were included in the index at the market close on Thursday, 17 December 2015. This has resulted in additional demand for the shares from index-tracking funds, and is expected to raise HVPE's profile among a broad range of investors.
Management and Board
Following the successful completion of a number of key projects in the current financial year, the HVPE Board has formalised the current management structure. The Chairman, Sir Michael Bunbury, has taken on the role of Executive Chairman. At the same time, Richard Hickman has been promoted to Director, Investment & Operations, and Billy Macaulay has been promoted to Director of Finance. Richard and Billy are responsible for the day-to-day operations of the Company, while the strategy and investment policy continue to be managed by directors Brooks Zug and Peter Wilson.
Managing a Listed Private Equity Company
Throughout HVPE's ongoing cycle of Commitments, Investment, Growth, and Realisation, the Board (along with the Investment Manager) employs tools and policies to manage the risk and reward for the benefit of the Company's shareholders.
Credit Facility
HVPE currently has no drawings on its credit facility. At 30 November 2015, HVPE's cash ($184.4 million) and available credit ($500.0 million) total $684.4 million. This represents 125% of commitments allocated to underlying partnerships and 72% of total commitments (compared to 123% and 69%, respectively, at 31 October 2015). The Rolling Coverage Ratio at 30 November 2015 is 105%. This reflects the sum of cash, available credit, and realisations expected to be received during the current financial year, taken as a percentage of the expected cash investments in HarbourVest funds over the current year plus the next two years. In considering forecast investments over a three-year period rather than total unfunded commitments, this calculation enables a more useful comparison of HVPE's coverage ratio relative to its peers.
Management of Foreign Currency Exposure
HVPE has exposure to foreign currency movements through foreign currency-denominated assets within the portfolio and through its unfunded commitments, which are long term in nature. The Company's most significant currency exposure is to euros. The Company does not actively use derivatives or other products to hedge the currency exposure.
Portfolio Diversification NAV
Consistent with HVPE's investment objective, the investment manager strives to manage risk through diversification within the portfolio. The charts illustrate the breakdown of HVPE's investment portfolio at 30 November 2015.
PORTFOLIO DIVERSIFICATION AT 30 NOVEMBER 2015
By Stage
By Phase
By Geography By Strategy
By Industry
- 61% Buyout
35% Venture and
Growth Equity
4% Other
49% Growth
20% Mature
31% Investment
• 66% U.S.
18% Europe
10% Asia Pacific
6% Rest of World
49% Primary
34% Secondary
17% Direct
35% Consumer / Financial
31% Technology / Telecom
18% Industrial / Other
16% Medical / Biotech
HVPE Monthly Factsheet
Notes The diversification by net asset value analysis is based on the fair value of the underlying investments, as estimated by the investment manager. Diversification by stage, phase, and geography is based on the estimated net asset value of partnership investments within HVPE's fund-of-funds and company investments within HVPE's direct funds. Industry diversification is based on the reported value of the underlying company investments for both fund-of-funds and direct funds. Some of the funds held in HVPE have not been fully invested. The composition of investments by phase, stage, geography, strategy, and industry may change as additional investments are made and existing investments are realised. By phase, growth includes vintage years 2006 to 2010, mature includes vintage years pre-2006, and investment includes vintage years 2011 to 2015.Company Overview
HarbourVest Global Private Equity Limited ("HVPE" or the "Company") is a Guernsey-incorporated, closed-end investment company listed on the London Stock Exchange and Euronext Amsterdam. HVPE is designed to offer shareholders superior, long-term capital appreciation while avoiding undue risk by investing in a diversified portfolio of private equity investments. The Company is managed by an affiliate of HarbourVest Partners, LLC ("HarbourVest"), a leading private equity fund-of-funds manager. The HarbourVest team has managed private equity investments for over 30 years, gaining invaluable expertise and developing long-term relationships with high quality managers.
HVPE is expected to continue to make investments in and alongside existing and newly-formed HarbourVest funds as they come to market. HarbourVest's funds typically invest their capital in primary partnerships, secondary investments, and direct investments across vintage years, strategies, geographies, and industries.
Contacts
REGISTERED OFFICE HarbourVest Global Private Equity Limited Ground Floor Dorey Court Admiral Park St Peter Port Guernsey GY1 2HT Tel +44 1481 702 400 Fax +44 1481 702 407 | INVESTMENT MANAGER HarbourVest Advisers L.P. c/o HarbourVest Partners, LLC One Financial Center 44th Floor Boston MA 02111 U.S.A. Tel +1 617 348 3707 Fax +1 617 350 0305 Richard Hickman rhickman@harbourvest.com +44 (0)20 7399 9847 | KEY INFORMATION Exchanges London Stock Exchange & Euronext Amsterdam Ticker HVPE Listing Date 6 December 2007 (Euronext) 9 September 2015 (LSE MM) Financial Year End 31 January Base Currency U.S. Dollars ISIN GG00BR30MJ80 SEDOL (SFM) BR30MJ8 SEDOL (Euronext) BR30MK9 Bloomberg HVPE NA, HVPE LN Reuters HVPE.AS, HVPE.L Common Code 032908187 Amsterdam 612956 Security Code |
Valuation Methodology HVPE carries its investments at fair value in accordance with U.S. generally-accepted accounting principles. HVPE's investment manager uses the best information it has available to estimate fair value. Fair value for private equity assets is based on the most recent financial information provided by the investment manager, adjusted for known investment operating expenses and subsequent transactions, including investments, realisations, changes in foreign currency exchange rates, and changes in value of public securities. Valuation adjustments are made for known significant events, if any, that affect the fair value of the investments. The 30 November 2015 estimated NAV is based on investment values at 30 September 2015 for company investments within HVPE's direct funds and partnerships within HVPE's fund-of-funds, adjusted for foreign exchange movements, cashflows, and known events to 30 November 2015.
HVPE is registered with the Dutch Authority for the Financial Markets as a collective investment scheme which may offer participations in The Netherlands pursuant to article 2:66 of the Financial Markets Supervision Act (Wet op het financieel toezicht). All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax, and other professional advice before making any investment decision. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results.
HVPE Monthly Factsheet
This document is not intended to be an investment advertisement or sales instrument; it constitutes neither an offer nor an attempt to solicit offers for the securities described herein. This report was prepared using financial information contained in HVPE's books and records as of the reporting date. This information is believed to be accurate but has not been audited by a third party. This report describes past performance, which may not be indicative of future results. HVPE does not accept liability for actions taken on the basis of the information provided.
HarbourVest Global Private Equity Ltd. issued this content on 2015-12-18 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2015-12-18 09:22:07 UTC
Original Document: http://www.hvpe.com/~/media/Files/H/Hvgpe/reports-and-presentations/estimated-monthly-nav/2015/30-november-2015-monthly-update.pdf