HarbourVest Global Private Equity’s estimated Net Asset Value per share stood at USD11.42 as at 31 January 2012, a 0.7% increase from 31 December 2011 (USD11.34) and an 11.5% increase for the financial year ended 31 January 2012.
January’s NAV increase resulted primarily from increases in the value of publicly-traded holdings to 31 January 2012 (approximately USD0.08 per share) as the MSCI World Index (USD) increased 5.7%; and positive foreign currency movement (USD0.02 per share) as the euro appreciated 0.9% against the US dollar. The value of the majority of HVPE’s privately-held companies continues to reflect the investment manager’s preliminary estimate of year-end 2011 valuations. The gain was partially offset by ongoing operating expenses (USD0.02 per share).
As of 31 January 2012, HVPE is valuing the Absolute portfolio at USD25.19 per share (including dividends received since closing), which is unchanged from 31 December 2011 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 USD9.9 million in US and international fund-of-funds and a direct fund. HVPE received USD4.0 million from fund-of-funds, resulting in net negative cashflows of USD5.9 million. Overall, HVPE was USD14.8 million cash flow positive for the financial year ended 31 January 2012 (excluding capital funded to the purchase of Absolute); compared to USD10.6 million cash flow positive for the financial year ended 31 January 2011. Investment and realisation activity is up significantly for the financial year, with USD165.8 million invested (a 31% increase over the financial year ended 31 January 2011) and USD180.6 million of realisations (32% increase).
In January, there were a total of 26 liquidity events across HVPE’s underlying portfolio, including 24 M&A transactions and two venture-backed IPOs. On 1 February 2012, social networking company 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. During the financial year ended 31 January 2012, there were a total of 409 liquidity events within HVPE’s underlying portfolio, a 6% increase over the 385 events during the financial year ended 31 January 2011. IPOs include Groupon and Zynga, held in HVPE’s venture portfolio, which currently represents 31% of investment value.
USD154.4 million is outstanding against the Company’s USD500 million credit facility, a USD4.8 million decrease from 31 December 2011 due to a USD5.0 million repayment and foreign currency movement.
