HARBOURVEST GLOBAL PRIVATE EQUITY LTD. Monthly Factsheet
29 February 2024
February Comment
The estimated NAV per share of $50.09 (£39.69) at 29 February 2024 represents a 0.9% increase in US dollar terms over the previous month. This was mainly driven by valuation gains in the private company portion of the direct funds portfolio, and gains in the public market portion of the fund of funds portfolio. February saw a higher amount of capital calls with a net $78 million invested over the month. During February, HVPE was in the market for five days buying back shares. Over this time, 383,424 ordinary shares were repurchased for a total consideration of $11.5 million which resulted in a $0.10 accretion to estimated NAV per share. Post month-end, HVPE has continued to buy back shares.
At 29 February 2024
Estimated NAV | GBP | USD |
per Share | Share Price | Share Price |
$50.09 | £22.30 | $28.25 |
31 January 2024: $49.67 | 31 January 2024: £23.15 | 31 January 2024: $29.15 |
Estimated NAV per Share Reconciliation (movement through month) ($)
49.67 | 0.17 | 0.23 | (0.06) | (0.02) | 0.10 | 50.09 | The NAV breakdown is an | |
estimate. See Valuation | ||||||||
Methodology on page | ||||||||
four for further details. | ||||||||
NAV per share | Valuations | Valuations | Operating | Foreign | Share | NAV per share |
at 31 January | gains/(losses) | gains/(losses) | expenses | currency | buybacks | at 29 February |
2024 | Fund of funds | Direct funds | 2024 |
1
Summary of Estimated Net Asset Value ("NAV") at 29 February 2024
29 February | 31 January | |
In millions except per share and last traded price data | 2024 | 2024 |
Investment Portfolio | $4,102 | $3,996 |
Cash and Cash Equivalents | $51 | $140 |
Drawings on the HVPE Credit Facility | $(275) | $(275) |
Net Other Assets (Liabilities) | $(6) | $(3) |
Estimated NAV | $3,872 | $3,858 |
Remaining Available Credit Facility (Undrawn) | $525 | $525 |
Estimated NAV per Share ($) | $50.09 | $49.67 |
Estimated NAV per Share (£ equivalent) | £39.69 | £39.19 |
Share Price (LSE) (£) | £22.30 | £23.15 |
Share Price (LSE) ($) | $28.25 | $29.15 |
Discount to NAV (GBP) | 44% | 41% |
Exchange Rate (GBP/USD) | 1.2620 | 1.2673 |
Note: Totals and subtotals may not recalculate due to rounding.
Share Price and NAV Per Share Movement from 31 January 2014
+400% | Key | |||||||||
NAV per share ($) | ||||||||||
+350% | Share price ($, converted)* | |||||||||
+300% | FTSE AW TR ($) | |||||||||
+250% | +263% | |||||||||
+200% | +163% | |||||||||
+150% | ||||||||||
+148% | ||||||||||
+100% | ||||||||||
+50% | ||||||||||
0%Jan | Jan | Jan | Jan | Jan | Jan | Jan | Jan | Jan | Jan | Feb |
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
Note: Total return figures can be found on page four; these will vary slightly from the figures in the chart above.
- HVPE introduced an additional US dollar share price on 10 December 2018; from this date onwards, the actual US dollar share price, as reported by the London Stock Exchange, has been used. Prior to this date, the US dollar share price had been converted from the sterling share price at the prevailing exchange rate.
One share. A world of private company opportunities.
HVPE Monthly Factsheet
The Private Equity Cycle
HVPE invests in and alongside HarbourVest-managed funds which focus on primary fund commitments, secondary investments and direct co-investments in operating companies. These in
2
Investments | Distributions |
(Investment Phase) | (Mature Phase) |
turn drive a steady pace of direct and indirect investment into private company opportunities. These investments develop and grow over a period of several years, before being exited. Proceeds from these distributions then provide the fuel for new commitments and the lifecycle continues.
Month ended 29 February 2024
New Commitments
Monthly total
$0m
Total month ended
31 January 2024: $0m
In February the majority of capital calls from underlying partnerships (by value) were for buyout investments at 64%, with venture and growth equity investments representing a further 35%. Of the total amount called, 57% had a North American investment focus and 35% had an Asia focus.
Top Five
Investing Managers
Amount | |
Manager | invested |
During February, there were a total of 33 M&A transactions and IPOs across HVPE's underlying portfolio, compared to January's total of 26, and a last 12-month average of 22. These were broken down into 31 M&A transactions and two IPOs.
Top Five
Distributing Managers
Total | Manager's largest | |
proceeds | distribution in | |
Partnership | in month | month (company) |
Investment Pipeline
Unallocated | Allocated | Total Investment Pipeline |
$0.6bn | $1.8bn | $2.4bn |
Month ended | Month ended | Total month ended |
31 January 2024: $0.7bn | 31 January 2024: $1.8bn | 31 January 2024: $2.5bn |
Investment | ||
Phase | ||
Investment Portfolio | ||
Cash invested in | ||
HarbourVest funds | Change includes | |
cash invested into |
Avataar Capital Management | $2.8m |
Novacap Investments Inc. | $1.9m |
Trive Capital | $1.6m |
General Atlantic | $1.5m |
TA Associates | $1.4m |
Please note that the amounts above represent capital calls to the underlying managers for investments, and may differ from the amount invested by HVPE into HarbourVest funds.
12 Month Cash Flow ($m)
31 March 2023 to 29 February 2024
Court Square Capital | $10.5m | Undisclosed |
Management, L.P. | ||
First Reserve | $3.8m | CHA |
Corporation | ||
Bain Capital Partners | $3.1m | Various |
Asia | ||
Summa Equity | $2.0m | Pagero |
Frazier Healthcare | $1.8m | Undisclosed |
Partners | ||
Please note that these distributions from general partners represent proceeds to HarbourVest funds, and may differ to the amount actually received by HVPE.
$89m | HarbourVest funds | ||
plus the Investment | |||
Month ended 31 January 2024 | Portfolio growth, less | ||
$7m | |||
distributions received. | |||
Investment | |||
Portfolio Change | |||
Mature | $106m | Growth | |
Phase | Month ended 31 January 2024 | Phase | |
$(23m) | |||
Distributions | Investment Portfolio | ||
received | growth | ||
$11m | $28m | ||
Month ended 31 January 2024 | Month ended 31 January 2024 | ||
$4m | $(26m) |
Capital calls to HabourVest funds | Distributions from HabourVest funds | |
130 | ||||||||||||
89 | ||||||||||||
76 | ||||||||||||
68 | 65 | 70 | ||||||||||
46 | 51 | 51 | ||||||||||
42 | 40 | |||||||||||
38 | 38 | |||||||||||
33 | ||||||||||||
11 | 8 | 4 | 10 | 12 | 8 | 7 | 4 | 11 | ||||
2 | ||||||||||||
Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | |
2023 | 2024 |
HVPE Monthly Factsheet
Diversification at 29 February 2024
Managing HVPE
3
Consistent with HVPE's investment objective, the Investment Manager strives to manage risk through diversification within the portfolio.
Investment stage | Geography | Strategy |
Credit facility
If future investments exceed distributions for a sustained period, it is important that HVPE is able to access funding as required to meet any shortfall.
At 29 February 2024, HVPE had a cash balance of $51 million and access to $525 million on its credit facility.
HarbourVest Partners ("HVP") Fund-level borrowing
At 29 February 2024, HVPE's share of HVP fund-level borrowing, on a look-through basis, was $482 million. Please refer to www.hvpe.com/ portfolio/financial-resources/ for further details.
Investment Pipeline and commitment ratios
The Board and Investment Manager make reference to three key ratios when assessing the Company's commitment levels, as shown below.
Buyout | 60% | North America | 62% | Primary | 50% | |||||
Venture and Growth Equity | 32% | Europe | 22% | Secondary | 30% | |||||
Mezzanine and InfRA1 | 8% | Asia Pacific | 14% | Direct Co-investment | 20% | |||||
Rest of World | 2% | |||||||||
Total Commitment Ratio at 29 February 2024
(Total exposure to private markets investments as a percentage of NAV)
Investment Portfolio + Investment Pipeline | $6,514m |
Divided by the NAV | $3,872m |
(12 month range: 167% to 169%) | 168% |
Phase | Currency | Industry |
exposure | ||
Growth | 47% | US dollar | 82% | Tech & Software | 33% | |||||
Investment | 42% | Euro | 14% | Consumer | 14% | |||||
Mature | 11% | Sterling | 2% | Medical & Biotech | 13% | |||||
Australian dollar | 1% | Financial | 11% | |||||||
Other | 1% | Industrial & Transport | 11% | |||||||
Business Services & Other | 10% | |||||||||
Energy & Cleantech | 4% | |||||||||
Media & Telecom | 4% | |||||||||
Medium-term Coverage Ratio at 29 February 2024
(A measure of medium-term commitment coverage based on current commitments)
Cash + Available Credit Facility ($) + next 12 Months' Projected Realisations ($) | $1,221m |
Divided by the next 36 Months' Estimated Investments | $1,472m |
(12 month range: 83% to 106%) | 83% |
Commitment Coverage Ratio at 29 February 2024
(Short-term liquidity as a percentage of total Investment Pipeline)
Cash + Available Credit Facility | $576m |
Divided by the Investment Pipeline | $2,412m |
(12 month range: 24% to 35%) | 24% |
Notes:
The diversification by net asset value analysis is based on the fair value of the underlying investments, as estimated by the investment manager. Diversification by stage, phase, currency and geography is based on the estimated net asset value of partnership investments within HVPE's fund of funds and company investments within HVPE's co-investment funds. Industry diversification is based on the reported value of the underlying company investments for both fund of funds and co-investment funds. Some of the funds held in HVPE have not been fully invested. The composition of investments by phase, stage, geography, strategy, and industry may change as additional investments are made and existing investments are realised. By phase, mature includes vintage years pre-2015, growth includes vintage years 2015 to 2019, and investment includes vintage years 2020 to 2024.
1 InfRA incorporates infrastructure and real assets.
HVPE Monthly Factsheet
Performance as at 29 February 2024
Since | |||||||
YTD1 | Inception | ||||||
Total Return | 1 year | 3 years | 5 years | 10 years | (2007) | ||
NAV per share ($) | 0% | 4% | 54% | 114% | 252% | 401% | |
Share price total return ($) | -6% | 10% | 3% | 49% | 161% | 178% | |
Share price total return (£) | -6% | 5% | 13% | 56% | 244% | 343% | |
FTSE All-World TR ($) | 5% | 24% | 24% | 69% | 137% | 180% | |
Since | |||||||
Inception | |||||||
Compound Annual Growth Rate | 3 years | 5 years | 10 years | (2007) | |||
NAV per share ($) | 16% | 16% | 13% | 10% | |||
Share price ($) | 1% | 8% | 10% | 6% | |||
Share price (£) | 4% | 9% | 13% | 10% | |||
FTSE All-World TR ($) | 7% | 11% | 9% | 7% | |||
1 "YTD" refers to calendar year to date.
HVPE introduced an additional US dollar share price on 10 December 2018; from this date onwards, the actual US dollar share price, as reported by the London Stock Exchange, has been used. Prior to this date, the US dollar share price had been converted from the sterling share price at the prevailing exchange rate. The share price total return figures have been adjusted for the redemptions which occurred in October 2013 and October 2014. Please also note the "NAV per share" percentages in the table above reflect the US dollar monthly estimated NAV per share.
Valuation Methodology:
HVPE carries its investments at fair value in accordance with US 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. The valuation breakdown of the HVPE portfolio as reported here is as follows: 6% actual 29 February 2024 (representing the public companies in the portfolio), 8% actual 31 December 2023 and 86% actual 30 September 2023. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cashflows, and any known material events to 29 February 2024.
All investments are subject to risk. Past performance is not indicative of, or a guarantee of future performance. Prospective investors are advised to seek expert legal, financial, tax, and other professional advice before making any investment decision. The value of an investment in HVPE may fluctuate and share prices and returns may go down as well as up. Results achieved in the past are no guarantee of future results. 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. The Paying Agent in Switzerland is Banque Cantonale de Genève, 17 Quai de l'Ile, CH-1211 Geneva 2, Switzerland. The distribution of Interests in Switzerland must exclusively be made to qualified investors. Copies of the Prospectus, Articles of Association and annual and semi-annual reports can be obtained free of charge from the Representative. The place of performance for Interests of HVPE offered or distributed in or from Switzerland is the registered office of the Representative, ACOLIN Fund Services AG, succursale Genève, 6 cours de Rive, 1204 Geneva, Switzerland.
HarbourVest
Global Private
Equity Limited
HarbourVest Global Private Equity Limited ("HVPE" or the "Company") is a London listed, FTSE 250 private equity investment company with assets of $3.9 billion (HVPE's functional currency is the US dollar) and a market capitalisation of approximately £1.7 billion as at 29 February 2024 (tickers: £ HVPE | $ HVPD). HVPE invests in private companies and portfolios of private companies through funds managed by HarbourVest Partners, an innovative global private markets asset manager with over 40 years of experience. HVPE is designed to offer shareholders long-term capital appreciation
by investing in a private markets portfolio diversified by geography, strategy, stage of investment, vintage year, and sector. By following a consistent and proven investment strategy, HVPE has delivered steady and robust NAV growth and has outperformed the public markets since inception, as measured by the FTSE All-World Total Return ("TR") index.
Why Invest
Holding shares in HVPE provides investors with a well-managed, ready-made global private equity programme and gives part-ownership of a diversified portfolio of underlying private companies3, spanning investment stages from early venture to large-cap buyouts. Many of these companies have the potential to become tomorrow's household names.
- Delisted from Euronext in October 2016.
- Holdings in publicly-traded companies, often resulting from IPOs in the private equity portfolio, represent 6% of HVPE's investment portfolio value.
www.hvpe.com
4
Key Information
Exchange | London Stock Exchange |
Tickers (£ | $) | HVPE | HVPD |
Market capitalisation | £1.7 billion |
Shares in issue | 77.3 million |
Listing date | 6 December 2007 (Euronext)2 |
9 September 2015 (LSE MM) | |
Financial year end | 31 January |
ISIN | GG00BR30MJ80 |
SEDOL (£ | $) | BR30MJ8 | BGT0LX2 |
Base currency | US Dollar |
Dividend policy | Historically HVPE has not paid |
a dividend. Any prospective | |
special dividends will be | |
determined by the Board, as | |
announced on 1 February | |
2024. |
Contact
Richard Hickman rhickman@harbourvest.com +44 (0)20 7399 9847
Stephanie Hocking shocking@harbourvest.com +44 (0)20 7399 9834
Registered Office
HarbourVest Global Private Equity Limited BNP Paribas House, St Julian's Avenue,
St Peter Port, Guernsey GY1 1WA
Investment Manager
HarbourVest Advisers L.P. c/o HarbourVest Partners, LLC
One Financial Center, Boston MA 02111, USA
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Disclaimer
HarbourVest Global Private Equity Ltd. published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2024 07:11:04 UTC.
