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HVPE NAV static in six months to 31 July

HarbourVest Global Private Equity’s net asset value was USD943.3m, or USD11.41 per share, as at 31 July 2012, essentially unchanged over the six-month period from 31 January 2012 (USD11.42).

A small net increase based on realisations through 31 July 2012 was offset by ongoing operating expenses and foreign currency losses, as concern around the euro grew.
HVPE experienced six consecutive months of positive cash flows, investing USD36m in HarbourVest funds and realising USD93m from HarbourVest funds, for net positive cash flows of USD57m during the period. The company repaid USD44m of outstanding debt, reducing borrowings on its USD500m credit facility to USD107m.
In early 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 USD120m, 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. The transaction is expected to hold an initial closing during the fourth calendar quarter of 2012, with subsequent closings extending into 2013.
Stuart Howard (pictured), chief operating officer of European listed products at HarbourVest, says: “After a strong start to 2012, NAV performance in the second quarter was affected by continuing concern about the euro, which affected public markets across the globe, leaving NAV relatively unchanged during the period. The volume of liquidity within the mature portfolio is encouraging, and we continue to commit to new HarbourVest funds and participate in complex public market transactions including Absolute and Conversus. With a cash-generative portfolio, excellent access to deals, and a strong balance sheet, HVPE is well placed to deliver NAV growth and shareholder returns in the future.”

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