HarbourVest Private Equity’s (HVPE) estimated NAV per share was USD13.81 at the end of January, a USD0.04 per share decrease from the 31 December 2013 estimate of USD13.85 and a USD1.35 per share (11 per cent) increase during the financial year ended 31 January 2014.
The monthly change was driven primarily by foreign currency movement. The value of the majority of HVPE’s privately-held companies continues to reflect the investment manager’s preliminary estimate of year-end 2013 valuations.
During January, HVPE invested USD22.4m in HarbourVest funds and received USD20.4m of realisations, resulting in net negative cash flows of USD2.0 m. With positive cash flows during nine of the last 12 months, HVPE is USD93.1m cash flow positive for the financial year ended 31 January 2014. During the month, there were a total of 44 liquidity events across HVPE’s underlying portfolio, including 34 M&A transactions and 10 IPOs. Digital Insight, held directly in HarbourVest 2013 Direct and HarbourVest IX Buyout, was sold to NCR for two times the HarbourVest funds’ cost.
HVPE increased its commitment to global direct co-investment fund HarbourVest 2013 Direct by USD50.0m, bringing the total commitment to USD100.0m. This fund is building a portfolio of global direct co-investments and participated in the January 2014 sale of Digital Insight. The company committed a total of USD274m to HarbourVest funds during the financial year.
During January, HVPE repaid USD5.3m against its credit facility, which is committed until April 2018 subject to certain covenants. At 31 January 2014, a total of USD99.7m is outstanding, which is a USD5.7m decrease from 31 December 2013 due to the repayment and foreign currency movement.
