HarbourVest Global Private Equity’s estimated net asset value per share is USD11.46, a USD0.15 per share (1.3 per cent) increase from the 31 July 2012 figure of USD11.31.
This change mainly reflects increases in the value of privately-held investments as the entire portfolio was re-valued to reflect final 30 June 2012 valuations, which were partially offset by ongoing operating expenses.
At 31 August 2012, HVPE is valuing the absolute portfolio at USD24.54 per share (including dividends received since closing), which is a 33 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 an active month for cash flows, HVPE invested USD15.7m in US and international fund of funds (compared to USD1.7m in July 2012). The company received USD13.6m of realisations from US and international fund of funds and a direct fund (compared to USD8.5m in July 2012), resulting in net negative cash flows of USD2.1m. Following six consecutive months of positive cash flows, HVPE remains USD55.1m cash flow positive for the financial year since 31 January. During August 2012, there were a total of 32 liquidity events across HVPE’s underlying portfolio, including 27 M&A transactions and five IPOs.
On 2 July 2012, HVPE (along with HarbourVest-managed funds) announced the purchase of the investment portfolio of Conversus Capital (CCAP) 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 Ltd. The transaction is expected to hold an initial closing during the fourth calendar quarter of 2012, with subsequent closings extending into 2013.
At 31 August 2012, a total of USD104m is outstanding, a USD2.7m decrease from 31 July 2012 due to a USD4m repayment in August and foreign currency movements.