HarbourVest Global Private Equity’s (HVPE) estimated net asset value (NAV) at the end of February is USD11.43, a USD0.01 per share increase from 31 January 2012 (USD11.42), its third consecutive monthly increase.
This modest adjustment reflects positive public markets and foreign currency movement during February, as well as adjustments to the estimated valuations as 31 December 2011 valuations are received from the underlying investments.
At 29 February 2012, HVPE is valuing the Absolute portfolio at USD25.19 per share (including dividends received since closing), which is unchanged from 31 January and a 36% increase over the purchase price of USD18.50 per share. Based on current market conditions and the rate at which the Absolute portfolio is receiving distributions, HVPE’s investment manager expects the Company to receive its first distribution from the Absolute investment in mid-2012.
During the month, HVPE invested USD1.0 million in the global secondary fund (the Company invested USD9.9 million in January 2012). HVPE received USD10.8 million from fund-of-funds, a direct fund, and the global secondary fund (compared to USD4.0 million in January), resulting in net positive cash flows of USD9.8 million. February realisations included proceeds from the December 2011 sale of Clyde Union Pumps (one of HVPE’s largest underlying companies at 31 July 2011) to SPX Corporation and the February 2012 sale of direct holding Kiala N.V. to UPS.
During February 2012, there were a total of 41 M&A and IPO liquidity events across HVPE’s underlying portfolio, a 58% increase over the 26 events during January. On 1 February 2012, Facebook, HVPE’s third largest underlying portfolio company at 31 July 2011, filed for an IPO, which is expected to value the company at between USD75 and USD100 billion. On 2 March 2012, Yelp, Inc. (NYSE: YELP) completed an IPO at USD15 per share, above its initial price range.
At 29 February 2012, USD150.3 million has been drawn against the Company’s USD500 million credit facility, a USD4.1 million decrease from 31 January 2012 due to a USD6.0 million repayment and foreign currency movement.
