Financial results

HVPE NAV down 0.1 per cent in October

At the end of October, HVPE’s estimated net asset value per share was USD11.54, a nominal USD0.01 per share (0.1 per cent) decrease from 30 September 2012.

This change mainly reflects decreases in the value of publicly-traded investments and ongoing operating expenses, which were partially offset by an increase the valuation of Absolute Private Equity and positive foreign currency movement.     
      
At 31 October 2012, HVPE is valuing the Absolute portfolio at USD24.89 per share (including dividends received since closing), which is a USD0.23 increase over 30 September 2012 and a 34.5 per cent increase over the purchase price of USD18.50 per share. Absolute has been de-listed and is now 100 per cent privately held.            
 
During the month, HVPE invested USD6.0m in US and international fund of funds (compared to USD3.3m in September 2012) and received USD11.8m of realisations from US and international fund of funds and a direct fund (compared to USD17.1m in September), resulting in net positive cash flows of USD5.8m. HVPE is USD75.1m cash flow positive for the financial year since 31 January. During October 2012, there were a total of 43 liquidity events across HVPE’s underlying portfolio (more than double the 20 events in September), including 36 M&A transactions and seven IPOs.
 
In early July 2012, HVPE (along with HarbourVest-managed funds) announced the purchase of the investment portfolio of Conversus Capital for USD1.4bn (implied value of USD22.11 per Conversus unit at 30 April 2012).  HVPE’s direct commitment to the transaction is expected to be a maximum of USD120m, or approximately nine per cent of the total deal, depending on the final unit holder elections. Conversus is a listed private equity fund and the largest publicly-traded portfolio of third party private equity funds globally, with a broadly diversified portfolio of over 200 private equity fund interests. 

The secondary purchase of Conversus follows the 2011 take-private of Absolute Private Equity.

The amount of HVPE’s investment is expected to be finalised in early December 2012, and the transaction is expected to close on 31 December 2012.
 
At 31 October 2012, a total of USD87.5m is outstanding on HVPE’s credit facility, a USD6.7m decrease from 30 September 2012 due to total repayments of USD6.4m in October and foreign currency movements.

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