Harbourvest Global Private Equity has announced results for the year ended 31 January 2016. After reaching an all-time high in May 2015, the total return of the MSCI All Country World Index was negative at -6.3% for the twelve months. In contrast the net asset value per HVPE share increased by 5.6% (in US dollar terms). HVPE’s share price at its year end on 31 January 2016 was £8.71, equivalent to $12.41 at the exchange rate of 1.4244. A year earlier, the Company did not have a sterling quote. Its U.S. dollar share price then was $12.73, equivalent to £8.45 at the exchange rate of 1.506. Thus the share price in U.S. dollars decreased over the year by -2.5%. As the NAV had increased by 5.6%, the decline in the U.S. dollar equivalent share price was on account of the increase in the discount to NAV to 26% at which the shares were trading on 31 January 2016 in contrast to the discount of 20% twelve months earlier.
HarbourVest monitors the performance of the vast majority of the 6,923 underlying companies in which HVPE has interests. During the year, 501 companies were involved in a liquidity event. HVPE reports that the uplifts from carrying value (being the valuation of the shares of that company on the last valuation day before the liquidity event was announced) in the year to 31 January 2016 averaged approximately 38%. The buoyant exit market has left HVPE with a $200m cash pile. In the year the Company received $362 million of realisations and paid $211 million in investments (capital calls).
Commitments include $232m to HarbourVest X buyout and $118m to HarbourVest X venture, $100m to HarbourVest 2015 Global Fund, $26m to HIPEP VII Europe, $25m to HarbourVest Canada Growth Fund and $25m to HarbourVest Mezzanine Income Fund.
Realisations included $8.5m from JM Smucker (Big Heart Pet Brands), PODS Enterprises (mobile storage solutions), Zalando (online fashion), Vistra Group (offshore financial services), Perrigo Company (Omega Pharma – OTC pharmaceuticals).
HVPE : HarbourVest’s cash pile growing