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HVPE NAV hits record level

HarbourVest Global Private Equity Limited’s estimated Economic NAV at 31 August 2011 is USD1,002.8 million, or USD11.05 per share, HVPE’s highest NAV since inception.


This exceeds the previous estimated Economic NAV peak of USD10.92 per share (recorded in May 2011), and represents a 2.9% increase from 31 July 2011 (USD10.74), a 14.5% increase from 31 December 2010 (USD9.65). 
The increase from July to August was driven by increases in value for privately-held companies as the majority of HVPE’s direct and fund-of-funds holdings were re-valued to reflect 30 June 2011 results (approximately USD0.43 per share) and positive foreign currency movement (USD0.01 per share).  These changes were partially offset by decreases in the value of publicly-traded holdings to 31 August 2011 (USD0.11 per share) and ongoing operating expenses (USD0.02 per share). 
In August 2011, HVPE funded USD12.0 million of capital calls to US and international fund-of-funds (USD13.4 million was funded in July) and received USD13.0 million in distributions from US and international fund-of-funds (above the USD11.5 million received in July), resulting in net positive cash flows of USD1.0 million.
Liquidity events continued across HVPE’s underlying portfolio during August 2011 with 32 transactions, including four IPOs and 28 M&A events.  Additionally, HVPE’s second largest underlying company based on investment value at 31 January 2011, Australia- based accounting software developer MYOB Limited, announced its sale to Bain Capital for AUSD1.2 billion, with the sale expected to close at the end of September 2011 and result in approximately USD10 million in distributions.
In April 2011, HVPE announced that it would participate, along with HarbourVest-managed secondary funds, in a public offer for all bearer shares of Absolute Private Equity, Ltd. (“Absolute”), an investment company incorporated in Switzerland. The transaction closed on 13 September 2011, with shareholders tendering 98.68% of Absolute shares. The offer price represented a 30% discount to Absolute’s most recently-reported net asset value per share and is expected to be accretive to HVPE’s NAV. In light of the attractive nature of the transaction and with the knowledge that HarbourVest has confirmed that Absolute will be taken private, HVPE increased its commitment to 14% of the transaction, representing an investment of approximately USD87 million.

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