HarbourVest Global Private Equity Limited (HVPE) has reported a 7 percent NAV increase during the financial period ended July 31, 2014. During the peirod HVPE committed $316 million to newly-formed HarbourVest funds including international fund-of-funds and a global balanced fund.
HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a closed-end investment company listed on Euronext Amsterdam and the Specialist Fund Market of the London Stock Exchange, today announces its unaudited results for the financial period ended 31 July 2014.
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 (Mature).
During the financial period ended 31 July 2014, HVPE committed $316 million to newly-formed HarbourVest funds, including international fund-of-funds and a global balanced fund. At 31 July, the Investment Pipeline of future commitments was $816 million, reflecting HVPE’s forward commitment strategy.
During the financial period, the Company invested $64 million in HarbourVest funds, which in turn made new primary fund, secondary, and direct co-investments. HVPE’s Investment Portfolio is highly diversified by stage, phase, geography, and strategy.
At 31 July 2014, HVPE’s Net Asset Value (“NAV”) was $1,246 million, or $15.35 per share, a 7% increase from 31 January 2014 ($14.38). Growth across the underlying portfolio was driven by ongoing liquidity events and increasing valuations alongside rising public equity markets. By stage, the buyout portfolio outperformed venture; by geography, Asia Pacific and the U.S. outperformed other regions.
HVPE received $147 million of realisations from HarbourVest funds during the financial period and expects to fund its ongoing commitments using the cash received. Liquidity events increased over the prior financial period, with venture events outpacing buyouts. The largest realisations within the Investment Portfolio were achieved at an uplift to carrying value of 40%.
Balance Sheet and Credit Facility
HVPE’s balance sheet strength and flexibility is supported by its $500 million credit facility, which will reduce to $300 million in January 2015. At 31 July 2014, a total of $22 million was outstanding on HVPE’s credit facility. During the financial period, the Company repaid $78 million (net of borrowings). The $20 million of Net Debt (outstanding debt less cash of $2 million) indicates a Net Leverage Ratio (Net Debt divided by NAV) of 2%, which had decreased from 8% at 31 January 2014 and from a peak of 20% in 2011. The Company has paid off its remaining debt and reduced gearing to zero subsequent to 31 July 2014.
HVPE’s Semi-Annual Report and Unaudited Financial Statements provide further details on the items above and can be found on HVPE’s website, in the Semi-Annual Report – Period Ending 31 July 2014.