Net Asset Value(s)

RNS Number : 8921G

HarbourVest Global Priv. Equity Ltd

20 March 2020

 

 

20 March 2020

HVPE ANNOUNCES ESTIMATED NAV PER SHARE AT 29 FEBRUARY 2020

· Estimated NAV of $26.92 (£20.99) per share, flat in USD during February

· Positive cash flow during month with a net $14 million of distributions received

· Statement by the Board and the Investment Manager to Shareholders on COVID-19

HarbourVest Global Private Equity Limited ("HVPE" or the "Company"), a closed-end investment company, today announces its estimated Net Asset Value ("NAV") at 29 February 2020.

HVPE provides a complete private equity solution for public investors, managing the portfolio through four phases of the private equity cycle to create value: Commitments, Investment, Growth, and Realisation.

Commitments

During February, HVPE did not make any new commitments to HarbourVest-managed funds. The Company's existing HarbourVest fund commitments continued to make new investments.

HVPE's Investment Pipeline (unfunded commitments) decreased on a net basis by $18.2 million during February based on capital funded and foreign exchange rate movement.

Investment

During February, HVPE invested $17.9 million in HarbourVest funds (compared to $36.7 million in January). The largest investment was made to a global direct co-investment fund.

Growth

At 29 February 2020, HVPE's estimated NAV per share was $26.92 (£20.99), unchanged in US dollar terms and a £0.61 increase in sterling terms from the 31 January 2020 estimate of $26.92 (£20.38). The flat February NAV in US dollars resulted from a combination of negative foreign exchange rate movement, public market adjustments in partnership funds, and operating expenses offsetting valuation gains in the direct funds.

Realisation

HVPE received $32.1 million of distributions from HarbourVest funds during February 2020, compared to a particularly low $2.6 million in January 2020. The largest source of distributions in the month was from a 2013 vintage global direct co-investment fund, which distributed $10.0 million. The majority of this related to the sale of UK-based telecom tower operator Eaton Towers (HVPE's 29^th largest underlying portfolio company at 31 January 2019) to American Towers Corporation. During February, there were a total of 23 liquidity events across HVPE's underlying portfolio compared to January's 20 events, and a last 12-month average of 26.

Balance Sheet and Credit Facility

HVPE currently has no drawings on its credit facility. Borrowing at the HarbourVest fund level stands at $379.5 million. At 29 February 2020, HVPE's cash ($144.5 million) and available credit ($600.0 million) totalled $744.5 million.

Additional detail about HVPE's NAV and investment diversification can be found on HVPE's website, in the Monthly Update for 29 February 2020 .

Statement by the Board and the Investment Manager to Shareholders on COVID-19

The estimated end-February NAV figure provided in this report is based largely on actual/estimated 31 December 2019 valuations in respect of the unlisted assets (being approximately 90% of the portfolio value) and has not been adjusted for the impact of public market declines since 29 February 2020. The consequences of the declines in public markets, and the broader impact of COVID-19 on the real economy, are expected to weigh materially on HVPE's NAV in the months ahead.

The Investment Manager would like to reassure all shareholders that HarbourVest continues to monitor the spread of COVID-19 and has taken actions to protect its employees and maintain business operations. The virus will impact the global economy, and the HarbourVest investment team is singularly focused on managing the portfolio to weather the near- and long-term effects. HarbourVest's investment team has significant experience managing through previous global events and crises. Private equity is a long-term investment, which allows for flexibility in times like these.  The Investment Manager is a long-established and leading global private markets asset manager with over 35 years of experience.

HVPE benefits from a strong balance sheet with $144.5 million of cash at 29 February which is further supported by an undrawn $600 million credit facility committed until at least January 2026.  The HVPE portfolio is well-diversified by geography, strategy, stage and sector as detailed on page 3 of the Monthly Factsheet. This is further supported by HVPE's strategy to dedicate a large portion of commitments to HarbourVest funds investing over a multi-year time horizon, enabling the Investment Manager to take advantage of opportunities over several years, and adding to the investment year spread of the portfolio.

The Board appreciates your partnership as shareholders and understands how painful the recent decline in the share price has been as the discount to Net Asset Value at which the shares currently trade has materially increased.  All of the directors are shareholders themselves.  Clearly the immediate future is impossible to forecast and investment in private markets must be seen as a long-term investment.  However, the directors have confidence that the Investment Manager's experience, the Company's strong balance sheet and the measured way in which the assets of the Company are invested, will carry HVPE through this current turbulence.

The HVPE team is here to discuss any questions you may have, so please do not hesitate to contact Richard Hickman or Charlotte Edgar using the contact details below.

Michael Bunbury - Chairman of HarbourVest Global Private Equity

Peter Wilson - Joint Managing Partner of HarbourVest and director of HarbourVest Global Private Equity

Enquiries:

HVPE
Richard Hickman	Tel: [phone]	[e-mail]
Charlotte Edgar	Tel: [phone]	[e-mail]
HarbourVest Partners
Alicia Sweeney	Tel: [phone]	[e-mail]
MHP Communications
Charlie Barker / Tim Rowntree	Tel: [phone]	[e-mail]

Notes to Editors:

About HarbourVest Global Private Equity Limited:

HarbourVest Global Private Equity Limited ("HVPE" or the "Company") is a Guernsey-incorporated, closed-end investment company which is listed on the Main Market of the London Stock Exchange and is a constituent of the FTSE 250 index. HVPE is designed to offer shareholders long-term capital appreciation by investing in a private equity portfolio diversified by geography, stage of investment, vintage year, and industry. The Company invests in and alongside HarbourVest-managed funds which focus on primary fund commitments, secondary investments and direct co-investments in operating companies. HVPE's investment manager is HarbourVest Advisers L.P., an affiliate of HarbourVest Partners, LLC, an independent, global private markets asset manager with more than 35 years of experience.

About HarbourVest Partners, LLC:

HarbourVest is an independent, global private markets asset manager with over 35 years of experience and more than $68 billion in assets under management, as of December 31, 2019. The Firm's powerful global platform offers clients investment opportunities through primary fund investments, secondary investments, and direct co-investments in commingled funds or separately managed accounts. HarbourVest has more than 600 employees, including more than 125 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $40 billion to newly-formed funds, completed over $24 billion in secondary purchases, and invested over $17 billion directly in operating companies. Partnering with HarbourVest, clients have access to customised solutions, longstanding relationships, actionable insights, and proven results.

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.

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, whose registered address is BNP Paribas House, St Julian's Avenue, St Peter Port, Guernsey, GY1 1WA

© 2020 HarbourVest Global Private Equity Limited. All rights reserved.

 

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