HarbourVest Global Private Equity’s estimated net asset value per share is USD11.31 at the end of July 2012, a USD0.18 per share decrease (1.6 per cent) from 30 June 2012 (USD11.49).
This change mainly reflects decreases in the value of privately-held investments as a portion of the portfolio was re-valued to reflect 30 June 2012 valuations, decreases in the value of publicly-traded securities, and foreign currency movement.
At 31 July 2012, HVPE is valuing the Absolute portfolio at USD24.77 per share (including dividends received since closing), which is unchanged from 30 June 2012 and a 34 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 USD1.7m in US and international fund of funds. The company received USD8.5m from US fund of funds and a direct fund, resulting in net positive cash flows of USD6.8m. This is the sixth consecutive month of positive cash flows. During July 2012, there were a total of 37 liquidity events across HVPE’s underlying portfolio, including 30 M&A transactions and seven IPOs.
On 2 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 USD131m, 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 transaction is expected to hold an initial closing during the last four months of 2012, with subsequent closings extending into 2013.
At 31 July 2012, USD106.7m has been drawn against the company’s USD500m credit facility, a USD5.8m decrease from 30 June due to a USD5.0m repayment and foreign currency movements.