TIDMHVPE
RNS Number : 8921G
HarbourVest Global Priv. Equity Ltd
20 March 2020
20 March 2020
HVPE ANNOUNCES ESTIMATED NAV PER SHARE AT 29 FEBRUARY 2020
-- Estimated NAV of $26.92 (GBP20.99) per share, flat in USD during February
-- Positive cash flow during month with a net $14 million of distributions received
-- Statement by the Board and the Investment Manager to Shareholders on COVID-19
HarbourVest Global Private Equity Limited ("HVPE" or the
"Company"), a closed-end investment company, today announces its
estimated Net Asset Value ("NAV") at 29 February 2020.
HVPE provides a complete private equity solution for public
investors, managing the portfolio through four phases of the
private equity cycle to create value: Commitments, Investment,
Growth, and Realisation.
Commitments
During February, HVPE did not make any new commitments to
HarbourVest-managed funds. The Company's existing HarbourVest fund
commitments continued to make new investments.
HVPE's Investment Pipeline (unfunded commitments) decreased on a
net basis by $18.2 million during February based on capital funded
and foreign exchange rate movement.
Investment
During February, HVPE invested $17.9 million in HarbourVest
funds (compared to $36.7 million in January). The largest
investment was made to a global direct co-investment fund.
Growth
At 29 February 2020, HVPE's estimated NAV per share was $26.92
(GBP20.99), unchanged in US dollar terms and a GBP0.61 increase in
sterling terms from the 31 January 2020 estimate of $26.92
(GBP20.38). The flat February NAV in US dollars resulted from a
combination of negative foreign exchange rate movement, public
market adjustments in partnership funds, and operating expenses
offsetting valuation gains in the direct funds.
Realisation
HVPE received $32.1 million of distributions from HarbourVest
funds during February 2020, compared to a particularly low $2.6
million in January 2020. The largest source of distributions in the
month was from a 2013 vintage global direct co-investment fund,
which distributed $10.0 million. The majority of this related to
the sale of UK-based telecom tower operator Eaton Towers (HVPE's
29(th) largest underlying portfolio company at 31 January 2019) to
American Towers Corporation. During February, there were a total of
23 liquidity events across HVPE's underlying portfolio compared to
January's 20 events, and a last 12-month average of 26.
Balance Sheet and Credit Facility
HVPE currently has no drawings on its credit facility. Borrowing
at the HarbourVest fund level stands at $379.5 million. At 29
February 2020, HVPE's cash ($144.5 million) and available credit
($600.0 million) totalled $744.5 million.
Additional detail about HVPE's NAV and investment
diversification can be found on HVPE's website, in the Monthly
Update for 29 February 2020 .
Statement by the Board and the Investment Manager to
Shareholders on COVID-19
The estimated end-February NAV figure provided in this report is
based largely on actual/estimated 31 December 2019 valuations in
respect of the unlisted assets (being approximately 90% of the
portfolio value) and has not been adjusted for the impact of public
market declines since 29 February 2020. The consequences of the
declines in public markets, and the broader impact of COVID-19 on
the real economy, are expected to weigh materially on HVPE's NAV in
the months ahead.
The Investment Manager would like to reassure all shareholders
that HarbourVest continues to monitor the spread of COVID-19 and
has taken actions to protect its employees and maintain business
operations. The virus will impact the global economy, and the
HarbourVest investment team is singularly focused on managing the
portfolio to weather the near- and long-term effects. HarbourVest's
investment team has significant experience managing through
previous global events and crises. Private equity is a long-term
investment, which allows for flexibility in times like these. The
Investment Manager is a long-established and leading global private
markets asset manager with over 35 years of experience.
HVPE benefits from a strong balance sheet with $144.5 million of
cash at 29 February which is further supported by an undrawn $600
million credit facility committed until at least January 2026. The
HVPE portfolio is well-diversified by geography, strategy, stage
and sector as detailed on page 3 of the Monthly Factsheet. This is
further supported by HVPE's strategy to dedicate a large portion of
commitments to HarbourVest funds investing over a multi-year time
horizon, enabling the Investment Manager to take advantage of
opportunities over several years, and adding to the investment year
spread of the portfolio.
The Board appreciates your partnership as shareholders and
understands how painful the recent decline in the share price has
been as the discount to Net Asset Value at which the shares
currently trade has materially increased. All of the directors are
shareholders themselves. Clearly the immediate future is impossible
to forecast and investment in private markets must be seen as a
long-term investment. However, the directors have confidence that
the Investment Manager's experience, the Company's strong balance
sheet and the measured way in which the assets of the Company are
invested, will carry HVPE through this current turbulence.
The HVPE team is here to discuss any questions you may have, so
please do not hesitate to contact Richard Hickman or Charlotte
Edgar using the contact details below.
Michael Bunbury - Chairman of HarbourVest Global Private
Equity
Peter Wilson - Joint Managing Partner of HarbourVest and
director of HarbourVest Global Private Equity
Enquiries:
HVPE
Richard Hickman Tel: +44 (0)20 7399 rhickman@harbourvest.com
9847
Charlotte Edgar Tel: +44 (0)20 7399 cedgar@harbourvest.com
9826
HarbourVest Partners
Alicia Sweeney Tel: +1 (617) 807 acurransweeney@harbourvest.com
2945
MHP Communications
Charlie Barker / Tel: +44(0)20 3128 hvpe@mhpc.com
Tim Rowntree 8100
Notes to Editors:
About HarbourVest Global Private Equity Limited:
HarbourVest Global Private Equity Limited ("HVPE" or the
"Company") is a Guernsey-incorporated, closed-end investment
company which is listed on the Main Market of the London Stock
Exchange and is a constituent of the FTSE 250 index. HVPE is
designed to offer shareholders long-term capital appreciation by
investing in a private equity portfolio diversified by geography,
stage of investment, vintage year, and industry. The Company
invests in and alongside HarbourVest-managed funds which focus on
primary fund commitments, secondary investments and direct
co-investments in operating companies. HVPE's investment manager is
HarbourVest Advisers L.P., an affiliate of HarbourVest Partners,
LLC, an independent, global private markets asset manager with more
than 35 years of experience.
About HarbourVest Partners, LLC:
HarbourVest is an independent, global private markets asset
manager with over 35 years of experience and more than $68 billion
in assets under management, as of December 31, 2019. 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 600 employees, including more than 125
investment professionals across Asia, Europe, and the Americas.
This global team has committed more than $40 billion to
newly-formed funds, completed over $24 billion in secondary
purchases, and invested over $17 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.
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, whose registered
address is BNP Paribas House, St Julian's Avenue, St Peter Port,
Guernsey, GY1 1WA
(c) 2020 HarbourVest Global Private Equity Limited. All rights
reserved.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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Kingdom. Terms and conditions relating to the use and distribution
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contact rns@lseg.com or visit www.rns.com.
END
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