28 September 2016
HARBOURVEST GLOBAL PRIVATE EQUITY REPORTS 5% NAV PER SHARE INCREASE IN SIX MONTHS TO 31 JULY 2016
- Net asset value (NAV) per share increased to $17.63 (£13.33), a 5% increase from 31 January 2016 - equivalent to 13% growth in pound sterling
- $131 million invested in HarbourVest funds and $101 million of realisations received during financial period
- 37% uplift on carrying value at realisation for largest exits
- Gearing remains at zero; $169 million of cash on Balance Sheet
HarbourVest Global Private Equity Limited ("HVPE" or the "Company"), a closed-end investment company listed on the London Stock Exchange and Euronext Amsterdam, today announces its unaudited results for the financial period ended 31 July 2016.
The Company invests in private companies and portfolios of private companies through funds managed by HarbourVest, an independent global private markets investment specialist with $43 billion in assets under management globally and a 30-year track record of innovation and success.
HVPE is designed to offer shareholders long-term capital appreciation by investing in a portfolio of private companies diversified by geography, by stage of investment, by vintage year, and by industry.
Sir Michael Bunbury, Chairman of HVPE, said:
"I am pleased to report a strong set of results, with NAV having grown by 5% in US dollars in the six months ending 31 July 2016, which translates into growth of 13% in sterling terms. We are continuing to see the benefits of a consistent forward commitment strategy and are confident about the outlook based on our diverse portfolio and range of investment opportunities."
HVPE provides a complete private equity solution for a broad range of investors by giving access to a diversified portfolio of private companies managed through four phases of the cycle to create value: Commitments, Investment, Growth, and Realisation (Mature).
During the financial period ended 31 July 2016, HVPE committed $200 million to newly-formed HarbourVest funds, including global secondary, co-investment, real assets, and multi-strategy focused funds.
At 31 July, the Investment Pipeline of future commitments was $1.1 billion, reflecting HVPE's forward commitment strategy.
During the six months ended 31 July 2016, the Company invested $131 million in HarbourVest funds, which, in turn made investments across the private equity spectrum, including new primary fund investments, secondary investments, and co-investments. HVPE's Investment Portfolio is highly diversified by stage, phase, geography, and strategy.
At 31 July 2016, HVPE's NAV was $1.4 billion, or $17.63 (£13.33) per share, a 5% increase (13% in sterling) from 31 January 2016 ($16.75/£11.76). Growth across the Investment Portfolio was driven by ongoing liquidity events and increasing valuations. By strategy, the buyout portfolio outperformed venture; by geography, Asia Pacific and the Rest of the World outperformed the US and Europe.
HVPE's functional currency is the US dollar, and NAV movements are reported in US dollars with a conversion to sterling at the month-end exchange rate. The GBP/USD rate as of 31 July 2016 was 1.323, while the rate as of 31 January 2016 was 1.424.
HVPE received $101 million of realisations from HarbourVest funds during the financial period and expects to fund its ongoing commitments using the cash received. Liquidity events within the underlying portfolio remained steady, with buyout-backed M&A events outpacing venture-backed events and venture IPOs slightly outpacing buyout-backed offerings. The largest realisations within the Investment Portfolio during the period were achieved at an uplift to carrying value of 37%.
Balance Sheet and Credit Facility
HVPE's balance sheet strength and flexibility is supported by its $500 million credit facility, and gearing remains at zero. At 31 July 2016, HVPE's cash ($169 million) and remaining available credit facility total $669 million.
HVPE's Semi-Annual Report and Unaudited Consolidated Financial Statements provide further detail on:
- The results for the financial period ended 31 July 2016
- Commitments - HVPE's commitments to newly-formed HarbourVest funds and the Investment Pipeline
- Investment - Cash invested in HarbourVest funds and HVPE's HarbourVest funds' new commitments to portfolios of private companies
- Growth - Investment Portfolio review and growth
- Realisation (Mature) - Realisations received and liquidity events
- Managing a Listed Private Equity Company - Balance Sheet Management and Commitment Ratios
- Global Private Markets Overview and Outlook and Recent Events
HVPE's Semi-Annual Report and Unaudited Consolidated Financial Statements can be found on HVPE's website, in the Semi-Annual Report - Period Ending 31 July 2016.
|Richard Hickman||Tel: +44 (0) 20 7399 9847||[email protected]|
|Laura Thaxter||Tel: +1 (617) 348 3695||[email protected]|
| Henry Adams|
| Tel: +44 (0) 20 8618 2975|
Tel: +44 (0) 20 8618 2897
Notes to Editors:
About HarbourVest Global Private Equity Limited:
HarbourVest Global Private Equity Limited ("HVPE") is a Guernsey-incorporated closed-end investment company which has a dual listing on both the London Stock Exchange and Euronext Amsterdam. HVPE is registered as an investment institution with the Netherlands Authority for the Financial Markets. HVPE is designed to offer shareholders long-term capital appreciation by investing in a private equity portfolio diversified by geography, by stage of investment, by vintage year, and by industry. It invests in and alongside HarbourVest-managed funds which focus on primary fund commitments, secondary investments, and direct co-investments in operating companies. HVPE is advised by HarbourVest Advisers L.P., an affiliate of HarbourVest Partners, LLC.
About HarbourVest Partners, LLC:
HarbourVest is an independent, global private markets investment specialist with more than 30 years of experience and $43 billion in assets under management. The Firm's powerful global platform offers clients investment opportunities through primary fund investments, secondary investments, and direct co-investments in commingled funds or separately managed accounts. HarbourVest has more than 340 employees, including more than 90 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $31 billion to newly-formed funds, completed over $14 billion in secondary purchases, and invested $5 billion directly in operating companies. Partnering with HarbourVest, clients have access to customised solutions, longstanding relationships, actionable insights, and proven results.
This announcement is for information purposes only and does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in any jurisdiction and should not be relied upon in connection with any decision to subscribe for or acquire any Shares. In particular, this announcement does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in the United States or to US Persons (as defined in Regulation S under the US Securities Act of 1933, as amended ("US Persons")). Neither this announcement nor any copy of it may be taken, released, published or distributed, directly or indirectly to US Persons or in or into the United States (including its territories and possessions), Canada, Australia or Japan, or any jurisdiction where such action would be unlawful. Accordingly, recipients represent that they are able to receive this announcement without contravention of any applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business. No recipient may distribute, or make available, this announcement (directly or indirectly) to any other person. Recipients of this announcement should inform themselves about and observe any applicable legal requirements in their jurisdictions.
The Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and, accordingly, may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, within the United States or to US Persons. In addition, the Company is not registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act") and shareholders of the Company will not have the protections of that act. There will be no public offer of the Shares in the United States or to US Persons.
This announcement has been prepared by the Company and its investment manager, HarbourVest Advisers L.P. (the "Investment Manager"). No liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of this announcement is accepted and no representation, warranty or undertaking, express or implied, is or will be made by the Company, the Investment Manager or any of their respective directors, officers, employees, advisers, representatives or other agents ("Agents") for any information or any of the opinions contained herein or for any errors, omissions or misstatements. None of the Investment Manager nor any of their respective Agents makes or has been authorised to make any representation or warranties (express or implied) in relation to the Company or as to the truth, accuracy or completeness of this announcement, or any other written or oral statement provided. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts contained in this announcement and nothing in this announcement is or should be relied on as a promise or representation as to the future.
Other than as required by applicable laws, the Company gives no undertaking to update this announcement or any additional information, or to correct any inaccuracies in it which may become apparent and the distribution of this announcement. The information contained in this announcement is given at the date of its publication and is subject to updating, revision and amendment. The contents of this announcement have not been approved by any competent regulatory or supervisory authority.
This announcement includes statements that are, or may be deemed to be, "forward looking statements". These forward looking statements can be identified by the use of forward looking terminology, including the terms "believes", "projects", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could", "should" or "continue" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding the intentions, beliefs or current expectations of the Company. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's ability to control or predict. Forward looking statements are not guarantees of future performance. More detailed information on the potential factors which could affect the financial results of the Company is contained in the Company's public filings and reports.
HarbourVest Global Private Equity Limited is registered with the Netherlands Authority for the Financial Markets as a collective investment scheme which may offer participations in The Netherlands pursuant to article 2:66 of the Financial Markets Supervision Act (Wet op het financieel toezicht). All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results.
This announcement is issued by the Company, which is registered with the Netherlands Authority for the Financial Markets and whose registered address is Ground Floor Dorey Court Admiral Park St Peter Port Guernsey GY1 2HT.
© 2016 HarbourVest Global Private Equity Limited. All rights reserved.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: HarbourVest Global Private Equity Limited via Globenewswire