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HarbourVest NAV down 1.5 per cent in January

HarbourVest Global Private Equity, a closed-end investment company listed on Euronext Amsterdam, had an estimated net asset value of USD699.1m, or USD8.42 per share, as at 31 January 2010. 

This represents a 1.5 per cent decrease from the 31 December 2009 estimated NAV per share of USD8.55. 

The decrease was driven primarily by foreign currency movements, decreases in the value of publicly-traded holdings, and ongoing operating expenses.
During January, HarbourVest did not make any new commitments or purchase additional interests in HarbourVest-managed funds.

The company continued to benefit from ongoing commitments made by the actively-investing HarbourVest funds in its portfolio, which made a new US venture partnership commitment.

During the month, HarbourVest funded USD2.7m of capital calls to US and non-US fund of funds.

HarbourVest received USD6.5m in distributions from US fund of funds and direct funds during January, resulting in a net positive cash flow of USD3.8m.

Approximately 60 per cent of the distributions were received from Fund VI Partnership, and 40 per cent were received from Fund VI Direct, which distributed proceeds from the December 2009 sale of Birds Eye Foods to Pinnacle Foods.

Merger and acquisition and initial public offering activity continued across HVPE’s underlying portfolio. During January 2010, three underlying buyout-backed companies completed IPOs, and
24 portfolio companies completed sale transactions.

HarbourVest’s unfunded commitments of USD623.0m decreased by USD8.5m during January, primarily as a result of currency movement. Of the total unfunded commitments, approximately USD447.3m has been committed by HarbourVest funds to underlying partnerships, while the remaining USD175.7m has not yet been committed.

During January, the company did not draw down additional capital against its USD500.0m credit facility, which is committed until December 2014 and subject to certain covenants. As at 31 January 2010, a total of USD75.0m has been drawn. Based on the facility’s most restrictive covenant, the remaining amount currently available is USD372.8m.

The company has USD10.6m in cash on its balance sheet, an increase of USD3.3m from 31 December, primarily reflecting the net positive cash flow during the month.

As at 31 January 2010, HarbourVest’s cash and available credit facility of USD383.4m represents 86 per cent of commitments allocated to underlying partnerships and 62 per cent of total commitments (compared to 86 per cent and 61 per cent, respectively, at 31 December 2009).

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