HarbourVest Global Private Equity Limited : Hal...
30 September 2013
HARBOURVEST GLOBAL PRIVATE EQUITY REPORTS 4% NAV INCREASE DURING SIX MONTHS ENDED 31 JULY 2013
Net asset value per share is $12.98, up from $12.46 at 31 January 2013
35% uplift on carrying value at realisation for largest exits
HVPE's share price increased 11% during six months ended 31 July 2013
$45 million cash flow positive during the period
Ongoing strategic initiatives result in upcoming distribution of $20 million to shareholders
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 six-month period ended 31 July 2013.
Net Asset Value
At 31 July 2013, HVPE's Net Asset Value ("NAV") was $1,074 million, or $12.98 per share, a 4% increase from 31 January 2013 ($12.46). Realised gains were driven by ongoing liquidity events within the underlying portfolio, and valuations increased alongside a continued rising NAV environment within volatile public markets and despite eurozone concerns. These increases were partially offset by management and performance fees, foreign currency movement, and ongoing operating expenses.
Cash Flows
HVPE experienced five months of positive cash flows from its portfolio during the six-month period. The Company invested $54 million in HarbourVest funds and received $99 million of realisations from HarbourVest funds, Conversus Capital, and Absolute Private Equity, leading to net positive cash flows of $45 million during the period.
Strategic Initiatives
In May 2013, HVPE's Board of Directors announced a number of strategic initiatives. The current summary of the initiatives is as follows:
Distribution
Following a shareholder vote to approve changes in the Company's articles, the Board has announced HVPE's initial distribution of $20 million ($0.24 per share) to shareholders. The payment is expected on 15 October 2013 and will take the form of a share redemption.
Listing and Governance Structure
The Company remains committed to reviewing both HVPE's current listing and its governance. The Board and the Investment Manager have begun discussions on aspects of the current management agreement and received advice on the steps necessary to list on the Main Market of the London Stock Exchange.
Gearing and Commitments
Gearing (net debt/NAV) has decreased from 15% to 11% during the first half of HVPE's financial year. The planned October distribution is expected to add approximately 2% to gearing, within the limits previously announced by the Board.
HVPE committed $170 million to HarbourVest funds during the six-month period to 31 July 2013, demonstrating the Board's continued belief in the asset class and the Investment Manager's ability to grow NAV.
Portfolio highlights at or during the six-month period ended 31 July 2013 include:
Investment Activity
$54 million invested in HarbourVest funds
$170 million committed to HarbourVest secondary fund and venture fund-of-funds
Realisation Activity and Liquidity Events
212 liquidity events (M&A events and IPOs) within the portfolio, more than half of prior year total
$99 million of realisations received from HarbourVest funds, Absolute, and Conversus
Weighted average uplift of 35% of carrying value at realisation for largest liquidity events
Highly Diversified and Mature Portfolio
23 vintage years dating back to 1986 (76% pre-2008)
Strategy - 30% venture, 65% buyout, 5% other
Geography - 70% U.S., 22% Europe, 8% Asia Pacific and Rest of World
Top 100 companies represent 30% of investment portfolio
Strong Balance Sheet
Continued focus on maintaining adequate resources to finance future obligations
$500 million credit facility committed through December 2014; will reduce to $300 million thereafter ($130 million outstanding at 31 July 2013)
$573 million investment pipeline
$383 million liquid resources
HVPE's Semi-Annual Report and Unaudited Consolidated Financial Statements provide further detail on:
The results for the six-month financial period ended 31 July 2013
The Investment Manager's market review and outlook
Investment and commitment activity
Portfolio performance and review
Realisation activity and liquidity events
Cash flows
Balance sheet management and commitment ratios
Recent events
The Company's Semi-Annual Report and Unaudited Consolidated Financial Statements can be found on HVPE's website, in the Semi-Annual Report - Period Ending 31 July 2013.
Enquiries:
| HarbourVest | |||
| Stuart Howard | Mobile: +44 (0) 7739 538096 | showard@harbourvest.com | |
| Laura Thaxter | Tel: +1 (617) 348 3695 | lthaxter@harbourvest.com | |
| Fishburn Hedges | |||
| Paul Farrow / Alastair Fairbrother / Ben Lyons | Tel: +44 (0) 20 7839 4321 | HVPE@fishburn-hedges.co.uk | |
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.
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. The HarbourVest team began investing in 1982 and has committed more than $30 billion to investments over its more than 30-year history. Across its global investment platform, HarbourVest and its affiliates have more than 230 employees in Boston, London, Hong Kong, Tokyo, Bogotá, and Beijing.
This announcement is for information purposes only and does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in any jurisdiction and should not be relied upon in connection with any decision to subscribe for or acquire any Shares. In particular, this announcement does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in the United States or to US Persons (as defined in Regulation S under the US Securities Act of 1933, as amended ("US Persons")). Neither this announcement nor any copy of it may be taken, released, published or distributed, directly or indirectly to US Persons or in or into the United States (including its territories and possessions), Canada, Australia or Japan, or any jurisdiction where such action would be unlawful. Accordingly, recipients represent that they are able to receive this announcement without contravention of any applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business. No recipient may distribute, or make available, this announcement (directly or indirectly) to any other person. Recipients of this announcement should inform themselves about and observe any applicable legal requirements in their jurisdictions.
The Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and, accordingly, may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, within the United States or to US Persons. In addition, the Company is not registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act") and shareholders of the Company will not have the protections of that act. There will be no public offer of the Shares in the United States or to US Persons.
This announcement has been prepared by the Company and its investment manager, HarbourVest Advisers L.P. (the "Investment Manager"). No liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of this announcement is accepted and no representation, warranty or undertaking, express or implied, is or will be made by the Company, the Investment Manager or any of their respective directors, officers, employees, advisers, representatives or other agents ("Agents") for any information or any of the opinions contained herein or for any errors, omissions or misstatements. None of the Investment Manager nor any of their respective Agents makes or has been authorised to make any representation or warranties (express or implied) in relation to the Company or as to the truth, accuracy or completeness of this announcement, or any other written or oral statement provided. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts contained in this announcement and nothing in this announcement is or should be relied on as a promise or representation as to the future.
Other than as required by applicable laws, the Company gives no undertaking to update this announcement or any additional information, or to correct any inaccuracies in it which may become apparent and the distribution of this announcement. The information contained in this announcement is given at the date of its publication and is subject to updating, revision and amendment. The contents of this announcement have not been approved by any competent regulatory or supervisory authority.
This announcement includes statements that are, or may be deemed to be, "forward looking statements". These forward looking statements can be identified by the use of forward looking terminology, including the terms "believes", "projects", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could", "should" or "continue" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding the intentions, beliefs or current expectations of the Company. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's ability to control or predict. Forward looking statements are not guarantees of future performance. More detailed information on the potential factors which could affect the financial results of
the Company is contained in the Company's public filings and reports.
HarbourVest Global Private Equity Limited is registered with the Netherlands 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.
This announcement is issued by the Company, which is registered with the Netherlands Authority for the Financial Markets and whose registered address is at Anson Place, Mill Court, La Charroterie, St Peter Port, Guernsey GY1 1EJ.
© 2013 HarbourVest Global Private Equity Limited. All rights reserved.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: HarbourVest Global Private Equity Limited via Thomson Reuters ONE
COMPANIES COVERED:
Latest directors dealings
- 30 minutes ago Braemar
- 44 minutes ago Ricardo
- 46 minutes ago Airtel Africa
- 1 hour ago Burford Capital NPV (DI)
- 1 hour ago Imperial Brands