HarbourVest Global Private Equity, a closed-end investment company listed on Euronext Amsterdam, has reported a 3.3 per cent rise in net asset value over the six months to 31 July 2009.
As at 31 July 2009, HVPE’s NAV was USD652.0m or USD7.86 per share. This represents an increase of USD0.25 per share, or 3.3 per cent over the six months from 31 January 2009 (USD7.61).
Of the USD0.25 increase in NAV per share, USD0.02 resulted from HarbourVest US fund of funds, USD0.11 from HarbourVest non-US fund of funds, USD0.06 from HarbourVest direct funds, and USD0.22 from unrealised foreign currency movement.
These were partially offset by a reduction in the global secondary fund (USD0.02) and operating expenses (USD0.14).
Gains for HarbourVest’s US, non-US and direct funds were driven primarily by improving public markets which increased the value of the public securities held in the portfolios, as well as the value of comparable public companies, against which many private company valuations are benchmarked.
HVPE chairman Sir Michael Bunbury says: "Your company has been in business for 22 of the most difficult months that any of your directors have experienced in their working lives. Thanks to HarbourVest’s strategic planning at the launch of HVPE, the company has weathered those months without deviating from its objectives as set out in the prospectus. We have not had to sell assets at distressed levels or raise additional capital at an inopportune time. We expect to continue to commit to new HarbourVest funds as they come to market. Meanwhile, the underlying managers of our existing fund commitments continue to make new investments. Our investment manager’s focus on the task of delivering strong long-term NAV growth will continue without deviation."
As at 31 July 2009 HVPE’s portfolio included commitments to 20 HarbourVest funds at various stages of development.
HVPE has 64 per cent of NAV invested in primary fund of funds, 21 per cent in secondary funds and 15 per cent in direct funds.
Reflecting HVPE’s portfolio diversification strategy, no single company represented more than 2.5 per cent of NAV, and the top 25 companies represented only approximately 18 per cent of NAV. The portion of NAV represented by the top 25 managers was only 29 per cent.
HVPE’s portfolio was invested 65 per cent in the US, 26 per cent in Europe, and nine per cent in Asia Pacific and the rest of the world, with significant geographic variability between venture and buyout within this split.
During the six-month period, HVPE did not make any new commitments to HarbourVest funds. However, the Company benefitted from the ongoing commitments made by six of the actively-investing HarbourVest funds in the portfolio.