Final Results

RNS Number : 6311M

HarbourVest Global Priv. Equity Ltd

27 May 2010

 

27 May 2010

HARBOURVEST GLOBAL PRIVATE EQUITY SEES 13.7% GROWTH IN NET ASSET VALUE OVER THE YEAR ENDED 31 JANUARY 2010

·    Balance sheet strength and financing flexibility increased through NAV growth and positive cash flow trends

·    Diversified portfolio including exposure to venture capital investments positions the Company well for growth

HarbourVest Global Private Equity Limited ("HVPE"), a closed-end investment company listed on Euronext Amsterdam and the Specialist Fund Market of the London Stock Exchange, today announces its audited results for the year ended 31 January 2010 and the publication of its Annual Report, showing that its net asset value ("NAV") rose by 13.7% over the year to 31 January 2010.

As at 31 January 2010, HVPE's NAV was $718.2 million, or $8.65 per share. This represents an increase of $1.04 per share over the financial year from 31 January 2009 ($7.61).

Of the $1.04 increase in NAV per share, $0.44 resulted from HarbourVest U.S. fund-of-funds, $0.37 from HarbourVest international fund-of-funds, $0.33 from HarbourVest direct funds, and $0.17 from unrealised foreign currency gains. The performance of the global secondary fund was neutral, and operating expenses resulted in a decrease of $0.27 per share.

Gains for HarbourVest's U.S., international, and direct funds were driven primarily by improving public markets, which increased the value of the public securities held in the portfolios, as well as the value of comparable public companies against which many private company valuations are benchmarked.

Portfolio highlights as at 31 January 2010 include:

·    HVPE's portfolio included commitments to 20 HarbourVest funds at various stages of development

·    HVPE has 63% of NAV invested in primary partnerships, 20% in secondary investments, and 17% in direct investments

·    Reflecting HVPE's portfolio diversification strategy, no single company represented more than 3.2% of NAV, and the top 25 companies represented  21% of NAV

·    The portion of NAV represented by the top 25 managers was 30%

·    HVPE's portfolio was invested 64% in the U.S., 28% in Europe, and 8% in Asia Pacific and the rest of the world

·    During the financial year, HVPE did not make any new commitments to HarbourVest funds.  However, the Company benefitted from the ongoing commitments made by six of the actively-investing HarbourVest funds in the portfolio, which committed $38 million to primary investments and $16 million to secondary and direct investments on HVPE's behalf

·    HVPE's broadly diversified industry allocation is positioned defensively in the current economic environment

Commitments and balance sheet highlights as at 31 January 2010 include:

·    From 1 February 2009 to 31 January 2010, HVPE funded $73.8 million of capital calls and received $51.8 million in distributions from HarbourVest funds, including  $25.1 million received in the fourth quarter alone

·    HVPE is 109% invested, compared to 106% at 31 January 2009

·    Total outstanding unfunded commitments were $623.0 million, down from $682.5 million at 31 January 2009

·    As at 31 January 2010, HVPE had a maximum amount available to be drawn down from its $500 million credit facility of $389.0 million, compared to $326.1 million at 31 January 2009, based on the facility's most restrictive covenants.

·    HVPE's Commitment Coverage Ratio (coverage of unfunded commitments) increased from 52% at 31 January 2009 to 64% at 31 January 2010; and its coverage of allocated commitments increased from 72% at 31 January 2009 to 89% at 31 January 2010

Post the financial year end, in May 2010, the Company successfully completed admission to the Specialist Fund Market of the London Stock Exchange and a Secondary Placing and Put Right Offer.  Together, these elements form a Liquidity Plan intended to expand the Company's shareholder base and improve liquidity.

Also subsequent to the financial year end, in May 2010, the Company approved an investment of £10.0 million ($14.5 million) in a new HarbourVest fund, HarbourVest Senior Loans Europe Limited ("HSLE").  HSLE will invest in existing and new senior secured loans to private equity-backed, mid-market companies in Europe, including the U.K.  The Company's investment manager believes that the HSLE investment provides an attractive opportunity to further diversify the HVPE portfolio with fixed income exposure while providing incremental opportunities for capital appreciation and current cash earnings.

The Company's Annual Report and Audited Consolidated Financial Statements provide further detail on:

·    Diversification by NAV

·    Largest managers based on NAV

·    Largest underlying company investments

·    Publicly-listed holdings

·    Currency exposure

·    Post financial year end events, including the Company's Liquidity Plan and  investment in HSLE

Conference Call Today

HVPE will host a conference call and webcast reviewing the Company and these results

for investors and analysts today, Thursday 27 May 2010, at the following time:

17.00 Amsterdam (16.00 London and Guernsey / 11.00 Boston) 

The webcast and accompanying presentation materials will be accessible through a link on HVPE's web site, www.hvgpe.com, or it will be accessible directly at:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=217248&eventID=3111794 

The conference call will be accessible via the following numbers:

0800 917 4860 (United Kingdom)
[phone] (International)

877 770 5750 (U.S. / Canada)

The Conference ID is 77826850.

The webcast and presentation will also be archived on the Shareholders section of HVPE's website. 

The Annual Report for the year ending 31 January 2010 will be available on HVPE's web site, www.hvgpe.com.

Enquiries:

HVPE
Amanda McCrystal	Tel: [phone]
HarbourVest
Laura Thaxter	Tel: [phone]
Fishburn Hedges
Michelle James/Dan Bradley/Jason Nisse	Tel: [phone]
[e-mail]

Notes to Editors:

About HarbourVest Global Private Equity Limited:

HarbourVest Global Private Equity Limited ("HVPE") is a Guernsey-incorporated closed-end investment company which has a dual listing on both the London Stock Exchange and Euronext Amsterdam.  HVPE is registered as an investment institution with the Netherlands Authority for the Financial Markets.  HVPE is designed to offer shareholders long-term capital appreciation by investing in a private equity portfolio diversified by geography, by stage of investment, by vintage year, and by industry.  It invests in and alongside HarbourVest-managed funds which focus on primary partnership commitments, secondary investments, and direct investments in operating companies.  HVPE is advised by HarbourVest Advisers L.P., an affiliate of HarbourVest Partners, LLC.  To learn more about HVPE, please visit 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.  It was formed in 1982 and has invested more than U.S.$30 billion over its 28-year history.  It currently has 236 employees in its Boston office and London and Hong Kong subsidiaries. www.harbourvest.com.

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/6311M_-2010-5-27.pdf

***

This release does not contain or constitute an offer to sell or a solicitation of an offer to purchase securities in the United States. The securities of HVPE have not been and will not be registered under the United States Securities Act of 1933 (the "Securities Act"), as amended, and may not be offered or sold in the United States or to U.S. persons unless they are registered under applicable law or exempt from registration. HVPE does not intend to register any portion of its securities in the United States or to conduct a public offer of securities in the United States. In addition, HVPE has not been and will not be registered under the United States Investment Company Act of 1940, and investors in HVPE are not entitled to the benefits of such Act.

 

END

 

 

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