Monthly Factsheet
30 June 2022
June Comment
The 30 June 2022 estimated NAV per share of $48.22 (£39.59) represents an increase of 1.5% in US dollar terms over the previous month. The growth over the period came from an increase in the value of the funds of funds as the remainder were updated with Q1 2022 valuations. This means that the June estimated NAV per share is now based mostly on 31 March valuations (90%), with 8% at 30 June, representing the public company holdings in the portfolio, and 2% at 31 December 2021.
At 30 June 2022
Estimated NAV | GBP | USD |
per Share | Share Price | Share Price |
$48.22 | £21.00 | $25.83 |
31 May 2022: $47.49 | 31 May 2022: £23.30 | 31 May 2022: $29.65 |
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Summary of Estimated Net Asset Value ("NAV") at 30 June 2022
30 June | 31 May | |
In millions except per share and last traded price data | 2022 | 2022 |
Investment Portfolio | $3,596 | $3,546 |
Cash and Cash Equivalents | $250 | $241 |
Drawings on the HVPE Credit Facility | $0 | $0 |
Net Other Assets (Liabilities) | $5 | $5 |
Estimated NAV | $3,851 | $3,792 |
Remaining Available Credit Facility (Undrawn) | $700 | $700 |
Estimated NAV per Share ($) | $48.22 | $47.49 |
Estimated NAV per Share (£ equivalent) | £39.59 | £37.68 |
Share Price (LSE) (£) | £21.00 | £23.30 |
Share Price (LSE) ($) | $25.83 | $29.65 |
Discount to NAV (GBP) | 47% | 38% |
Exchange Rate (GBP/USD) | 1.2181 | 1.2603 |
Share Price and NAV Movement from 31 January 2012
$50.00 | Key Share price ($, converted)* | $45.89 | $48.22 |
$45.00 | NAV per share ($) | ||
$40.00 | FTSE AW TR ($) | ||
Estimated NAV per Share Reconciliation (movement through month) ($)
47.49 | 1.09 | (0.14) | (0.04) | (0.18) | 48.22 |
NAV per share | Valuations | Valuations | Operating | Foreign | NAV per share |
at 31 May | gains/(losses) | gains/(losses) | expenses | currency | at 30 June |
Fund of funds | Direct funds |
The NAV breakdown is an estimate. See Valuation Methodology on page four for further details.
$35.00 | $31.86 | |||||||||||
$30.00 | $26.92 | $25.83 | ||||||||||
$23.30 | ||||||||||||
$25.00 | $21.01 | |||||||||||
$20.00 | $18.05 | |||||||||||
$15.86 | $16.75 | |||||||||||
$14.38 | ||||||||||||
$15.00 | $12.46 | |||||||||||
$11.42 | ||||||||||||
$10.00 | ||||||||||||
$5.00 | ||||||||||||
Jan | Jan | Jan | Jan | Jan | Jan | Jan | Jan | Jan | Jan | Jan | Jun | |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2022 |
Note: Total return figures can be found on page four.
- HVPE introduced an additional US dollar share price on 10 December 2018; from this date onwards, the actual US dollar share price, as reported by the London Stock Exchange, has been used. Prior to this date, the US dollar share price had been converted from the sterling share price at the prevailing exchange rate.
One share. A world of private company opportunities.
HVPE Monthly Factsheet
The Private Equity Cycle
HVPE invests in and alongside HarbourVest-managed funds which focus on primary fund commitments, secondary investments and direct co-investments in operating companies. These in turn drive a steady pace of direct and indirect investment into private company opportunities. These investments develop and grow over a period of several years, before being exited. Proceeds from these distributions then provide the fuel for new commitments and the lifecycle continues.
Month ended 30 June 2022
Investments
(Investment Phase)
In June, the majority of capital calls from underlying partnerships (by value) were for buyout investments at 79%, with venture investments representing a further 18%. Of the total amount called, the majority (77%) was from partnerships with a US investment focus.
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June
(Mature Phase)
During June there were a total of 28 M&A transactions and IPOs across HVPE's underlying portfolio, compared to May's 18, and a last 12-month average of 33. These were broken down into 27 M&A transactions and one IPO.
New Commitments
Global direct | Asia-focusedmulti-strategy | Monthly total |
co-investment fund | fund of funds | |
$25m | $90m | $115m |
Top Five | Top Five | |||
Investing Managers | Distributing Managers | |||
Total | Manager's largest | |||
Amount | proceeds | distribution in | ||
Manager | invested | Partnership | in month | month (company) |
Total month ended |
31 May: $0m |
Investment Pipeline
Unallocated | Allocated | Total Investment Pipeline |
$1.3bn | $1.5bn | $2.8bn |
Month ended | Month ended | Total month ended |
31 May: $1.3bn | 31 May: $1.5bn | 31 May: $2.8bn |
Investment | ||
Phase | ||
Investment Portfolio | ||
Cash invested in | ||
HarbourVest funds | Change includes | |
$62m | cash invested into | |
HarbourVest funds |
Thoma Bravo | $4.3m |
Incline Equity Management | $2.0m |
H.I.G. Capital | $1.9m |
Sycamore Partners Management | $1.5m |
Kohlberg Kravis Roberts & Co | $1.5m |
Please note that the amounts above represent capital calls to the underlying managers for investments, and may differ from the amount invested by HVPE into HarbourVest funds.
12 Month Cash Flow ($m)
1 July 2021 to 30 June 2022
Pharos Capital Partners | $3.9m | Undisclosed |
Lightspeed Venture | $3.2m | Undisclosed |
Partners | ||
Golden Gate Capital | $3.0m | Various |
EQT Managers | $2.2m | VFS Global and |
Certara | ||
Corsair Capital | $2.2m | Undisclosed |
Infrastructure Partners | ||
Please note that these distributions from general partners represent proceeds to HarbourVest funds, and may differ to the amount actually received by HVPE.
Month ended 31 May | plus the Investment | ||
Portfolio growth, less | |||
$53m | |||
distributions received. | |||
Investment | |||
Portfolio Change | |||
Mature | $50m | Growth | |
Phase | Month ended 31 May | Phase | |
$49m | |||
Distributions | Investment Portfolio | ||
received | growth | ||
$71m | $59m | ||
Month ended 31 May | Month ended 31 May | ||
$0m | ($4m) |
Capital calls to HabourVest funds | Distributions from HabourVest funds |
132 | 132 | 125 | ||||||||||
112 | ||||||||||||
73 | 70 | 78 | 75 | 71 | ||||||||
61 | 58 | 62 | ||||||||||
53 | ||||||||||||
51 | 47 | |||||||||||
29 | 32 | |||||||||||
21 | 24 | 21 | ||||||||||
20 | ||||||||||||
3 | ||||||||||||
1 | 0 | |||||||||||
Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | |
2021 | 2022 |
HVPE Monthly Factsheet
Diversification at 30 June 2022
Managing HVPE
3
Consistent with HVPE's investment objective, the Investment Manager strives to manage risk through diversification within the portfolio.
Investment stage | Geography | Phase |
Credit facility
If future investments exceed distributions for a sustained period, it is important that HVPE is able to access funding as required to meet any shortfall.
At 30 June 2022, HVPE had a cash balance of $250 million and access to the full $700 million on its credit facility.
HarbourVest Partners ("HVP") Fund-level borrowing
At 30 June 2022, HVPE's share of HVP fund-level borrowing, on a look-through basis, was $540 million. Please refer to hvpe.com/portfolio/financial- resources/ for further details.
Investment Pipeline and commitment ratios
The Board and Investment Manager make reference to three key ratios when assessing the Company's commitment levels, as shown below.
Buyout | 53% | US | 62% | Investment | 52% | |||||
Venture and Growth Equity | 38% | Europe | 20% | Growth | 39% | |||||
Mezzanine and InfRA* | 9% | Asia Pacific | 15% | Mature | 9% | |||||
* InfRA incorporates infrastructure and | Rest of World | 3% | ||||||||
real assets.
Total Commitment Ratio at 30 June 2022
(Total exposure to private markets investments as a percentage of NAV)
Investment Portfolio + Investment Pipeline | $6,429m |
Divided by the NAV | $3,851m |
(12 month range: 146% to 167%) | 167% |
Strategy | Currency | Industry |
exposure | ||
Underlying partnership funds | ||||||||||
Primary | 53% | US dollar | 83% | Tech & Software | 31% | |||||
Secondary | 29% | Euro | 13% | Medical & Biotech | 13% | |||||
Direct | 18% | Sterling | 2% | Consumer | 12% | |||||
Australian dollar | 1% | Financial | 12% | |||||||
Other | 1% | Industrial & Transport | 12% | |||||||
Business Services & Other | 11% | |||||||||
Energy & Cleantech | 5% | |||||||||
Media & Telecom | 4% | |||||||||
Rolling Coverage Ratio at 30 June 2022
(A measure of medium-term commitment coverage)
Cash + Available Credit Facility ($) + Current Year Estimated Realisations ($) | $1,744m |
Divided by the next 36 months' estimated investments | $2,731m |
(12 month range: 64% to 115%) | 64% |
Commitment Coverage Ratio at 30 June 2022
(Short-term liquidity as a percentage of total Investment Pipeline)
Cash + Available Credit Facility | $950m |
Divided by the Investment Pipeline | $2,833m |
(12 month range: 34% to 43%) | 34% |
Notes:
The diversification by net asset value analysis is based on the fair value of the underlying investments, as estimated by the investment manager. Diversification by stage, phase, and geography is based on the estimated net asset value of partnership investments within HVPE's fund of funds and company investments within HVPE's co-investment funds. Industry diversification is based on the reported value of the underlying company investments for both fund of funds and co-investment funds. Some of the funds held in HVPE have not been fully invested. The composition of investments by phase, stage, geography, strategy, and industry may change as additional investments are made and existing investments are realised. By phase, mature includes vintage years pre-2013, growth includes vintage years 2013 to 2017, and investment includes vintage years 2018 to 2022.
HVPE Monthly Factsheet
Performance as at 30 June 2022
Since | |||||
Inception | |||||
1 year | 3 years | 5 years | 10 years | (2007) | |
NAV per share ($) | 19.4% | 93.0% | 150.6% | 319.7% | 382.2% |
Share price total return ($) | (13.8%) | 24.8% | 58.3% | 260.6% | 154.2% |
Share price total return (£) | (3.2%) | 30.6% | 67.6% | 358.4% | 317.8% |
FTSE All-World TR ($) | (15.2%) | 21.8% | 43.9% | 145.4% | 112.0% |
HVPE introduced an additional US dollar share price on 10 December 2018; from this date onwards, the actual US dollar share price, as reported by the London Stock Exchange, has been used. Prior to this date, the US dollar share price had been converted from the sterling share price at the prevailing exchange rate.
Valuation Methodology:
HVPE carries its investments at fair value in accordance with US generally-accepted accounting principles. HVPE's Investment Manager uses the best information it has available to estimate fair value. Fair value for private equity assets is based on the most recent financial information provided by the Investment Manager, adjusted for known investment operating expenses and subsequent transactions, including investments, realisations, changes in foreign currency exchange rates, and changes in value of public securities. The valuation breakdown of the HVPE portfolio as reported here is as follows: 8% actual 30 June 2022 (representing the public companies in the portfolio); 90% actual 31 March 2022 and 2% actual 31 December 2021. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cashflows, and any known material events to 30 June 2022.
All investments are subject to risk. Past performance is not indicative of, or a guarantee of future performance. Prospective investors are advised to seek expert legal, financial, tax, and other professional advice before making any investment decision. The value of an investment in HVPE may fluctuate and share prices and returns may go down as well as up. Results achieved in the past are no guarantee of future results. This document is not intended to be an investment advertisement or sales instrument; it constitutes neither an offer nor an attempt to solicit offers for the securities described herein. This report was prepared using financial information contained in HVPE's books and records as of the reporting date. This information is believed to be accurate but has not been audited by a third party. This report describes past performance, which may not be indicative of future results. HVPE does not accept liability for actions taken on the basis of the information provided. The Paying Agent in Switzerland is Banque Cantonale de Genève, 17 Quai de l'Ile, CH-1211 Geneva 2, Switzerland. The distribution of Interests in Switzerland must exclusively be made to qualified investors. Copies of the Prospectus, Articles of Association and annual and semi-annual reports can be obtained free of charge from the Representative. The place of performance for Interests of HVPE offered or distributed in or from Switzerland is the registered office of the Representative, ACOLIN Fund Services AG, succursale Genève, 6 cours de Rive, 1204 Geneva, Switzerland. *Delisted from Euronext in October 2016.
HarbourVest
Global Private
Equity Limited
HarbourVest Global Private Equity Limited ("HVPE" or the "Company") is a London listed, FTSE 250 private equity investment company with assets of $3.9 billion (HVPE's functional currency is the US dollar) and a market capitalisation of approximately £1.7 billion as at 30 June 2022 (tickers: £ HVPE |
-
HVPD). HVPE invests in private companies and portfolios of private companies through funds managed by HarbourVest Partners, an innovative global private markets asset manager with 40 years of experience. HVPE is designed to offer shareholders long-term capital appreciation by investing in a private markets portfolio diversified by geography, strategy, stage of investment, vintage year, and sector. By following a consistent and proven investment strategy, HVPE has delivered steady and robust
NAV growth and has outperformed the public markets since inception, as measured by the
FTSE All-World Total Return ("TR") index.
Why Invest
Holding shares in HVPE provides investors with a well-managed, ready-made global private equity programme and gives part-ownership of a diversified portfolio of underlying private companies**, spanning investment stages from early venture to large-cap buyouts. Many of these companies have the potential to become tomorrow's household names.
- Holdings in publicly-traded companies, often resulting from IPOs in the private equity portfolio, represent 8% of HVPE's investment portfolio value.
www.hvpe.com
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Key Information
Exchange | London Stock Exchange |
Tickers (£ | $) | HVPE | HVPD |
Market capitalisation | £1.7 billion |
Shares in issue | 79.9 million |
Listing date | 6 December 2007 (Euronext) |
9 September 2015 (LSE MM) | |
Financial year end | 31 January |
ISIN | GG00BR30MJ80 |
SEDOL (£ | $) | BR30MJ8 | BGT0LX2 |
Base currency | US Dollar |
Dividend policy | HVPE does not pay |
a dividend. The Company | |
re-invests all distribution | |
proceeds into new | |
opportunities. |
Contact
Richard Hickman rhickman@harbourvest.com +44 (0)20 7399 9847
Charlotte Edgar cedgar@harbourvest.com +44 (0)20 7399 9826
Registered Office
HarbourVest Global Private Equity Limited BNP Paribas House , St Julian's Avenue, St Peter Port, Guernsey GY1 1WA
Investment Manager
HarbourVest Advisers L.P. c/o HarbourVest Partners, LLC
One Financial Center, Boston MA 02111, USA
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Disclaimer
HarbourVest Global Private Equity Ltd. published this content on 19 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 07:23:03 UTC.