At the end of December, HarbourVest Global Private Equity (HVPE) recorded its highest Net Asset Value level for four years, with NAV reaching USD937.7 million, or USD11.34 per share, a 3.0% (USD0.33) increase from 30 November (USD11.01) and a 10.7% increase for the eleven months to 31 December 2011.
December’s NAV increase resulted primarily from an approximate USD0.36 per share valuation uplift plus a USD0.04 per share increase related to the valuation of Absolute. As of 31 December 2011, HVPE is valuing the Absolute portfolio at USD25.19 per share (including dividends received since closing), a 36% increase over the purchase price of USD18.50 per share.
The December NAV gain was partially offset by negative foreign currency movement (USD0.05 per share) and ongoing operating expenses (USD0.02 per share). Despite euro weakness affecting HVPE’s NAV of Investments, the overall result of currency movement is broadly neutral as the Company maintains sufficient euro-denominated borrowings so that these and its unfunded euro commitments are approximately equal to its euro assets.
During the month, HVPE funded USD22.9 million of capital calls to U.S. and international fund-of-funds, the global secondary fund, and a direct fund. HVPE received USD21.1 million in distributions in December, resulting in nominal negative cashflows of USD1.8 million. Year to date cashflows are net positive at USD20.6 million, with a 37% increase in distributions received compared to the same period in 2010.
In December, there were a total of 35 liquidity events across HVPE’s underlying portfolio, including 29 M&A transactions and six IPOs. Venture-backed IPOs included social network game developer Zynga Game Network and Jive Software. During the eleven months to 31 December 2011, there were a total of 383 liquidity events within HVPE’s underlying portfolio, a 9% increase over the 350 events during the same period in 2010.
USD159.2 million has been drawn against the Company’s USD500 million credit facility, a USD2.4 million decrease from 30 November due to foreign currency movement.
Additional detail about HVPE’s Economic NAV and investment diversification can be found on HVPE’s website, in the Monthly Update for 31 December 2011.
