HarbourVest Partners, a Boston-based fund-of-funds manager, has successfully floated a closed-end investment vehicle on the Euronext Amsterdam. The offering came up $100 million short of its $400 million target, but nonetheless managed to maintain the vehicle's $830 million initial market cap. Shares were flat in their first day of trading.
HarbourVest Global Private Equity (“HVPE”), a closed-ended investment company incorporated in
After a global roadshow that included Europe, the Middle East and the
HVPE is managed by HarbourVest Advisers L.P., an affiliate of HarbourVest Partners, LLC, a leading private equity fund-of-funds manager (“HarbourVest” ). The proceeds of the offering are being used to acquire a carefully selected portfolio of HarbourVest-managed funds and to make commitments to current HarbourVest-managed funds. On admission to trading, HVPE will be at least 90% invested.
HVPE will be the only means to access HarbourVest's investment strategy through a publicly-traded vehicle. It will invest in HarbourVest funds – past, present and future – which focus on primary partnership commitments, secondary investments or direct investments in operating companies.
Conditional dealings in the shares on Euronext Amsterdam begin today, Thursday, 6 December 2007 at 9:00am (CET) and unconditional dealings are expected to begin at 9:00am (CET) on 11 December 2007.
Lehman Brothers International (Europe), as stabilising manager, may, up to 5 January 2008, purchase up to an aggregate of 2,500,000 shares in cash at the offer price of U.S.$10.00 per share from certain existing HarbourVest limited partners to cover over-allotments, if any, made in connection with the offering.
HarbourVest is one of the largest and longest-established private equity fund-of-funds managers in the world. Over the past 25 years, investors have committed more than U.S.$29 billion to its private equity programs. It has demonstrated an ability to build top-quartile investment portfolios by actively selecting top-tier managers and allocating assets across private equity strategies.
Brooks Zug, Director of HVPE and Senior Managing Director of HarbourVest, said:
“We are delighted to have reached our targeted market capitalisation of U.S.$830 million and to have succeeded with the listing of HVPE. In the face of very challenging financial markets, investors have recognised that HVPE represents an exceptional opportunity to gain access to a high quality private equity portfolio through a public investment company structure. We remain very optimistic about the long-term potential of private equity markets in general and HVPE in particular.”
George Anson, Director of HVPE and Managing Director of HarbourVest, said:
“We are very pleased that high calibre investors have supported this offering. HVPE is a well structured vehicle, and we are confident that its investment portfolio provides a strong platform for delivering the performance to underpin shareholder value. We believe the profile of our investors – large institutions with medium to long-term investment horizons – further strengthens our company's long-term focus.”
Lehman Brothers International (Europe) acted as Global Coordinator and Lehman Brothers International (Europe), Deutsche Bank AG, London Branch and Goldman Sachs International acted as Joint Bookrunners of the global offering.
Notes to Editors:
About HarbourVest Global Private Equity Limited:
HarbourVest Global Private Equity Limited is a newly established, Guernsey-incorporated closed-ended investment company ( http://www.hvgpe.com ).
About HarbourVest Partners, LLC:
HarbourVest is an independent global private equity investment firm and an SEC-registered investment advisor, providing vehicles for institutional investors to invest in the venture capital and buyout markets in the U.S., Europe, and elsewhere through primary partnerships, secondary purchases, and direct investments. HarbourVest and its subsidiaries have 180 employees, including 68 investment professionals deployed in Boston, London, and Hong Kong. In 25 years of investing in private equity, the team has committed more than U.S.$18.6 billion to newly formed funds, representing relationships with 200 private equity managers. The team has also completed over U.S.$4.3 billion in secondary purchases of partnership interests and invested U.S.$3.1 billion directly in operating companies. The firm's clients consist of 240 institutional investors, including pension funds, endowments, foundations, and financial institutions throughout the U.S., Canada, Europe, Australia, and Japan ( http://www.harbourvest.com ).