HarbourVest Global Private Equity (HVPE) announced results for the year ended 31 January 2020. NAV per share increase of 14.5% to $27.6 over the 12 months. The company was a net investor over the year, with $324.2m cash invested, compared with distributions of $308.2m.
HVPE committed $570m over the year, to new HarbourVest funds, with the majority weighted towards primary funds.
HVPE said that the impact of Covid-19 has had, and may continue to have, a material impact on the value and performance of the portfolio. As at 31 May 2020, estimated NAV per share was $25.62. Commitment plans have temporarily been placed on hold.
Based on assessment by the manager that so far has covered 80% of the portfolio’s value, HVPE says that at this point in time, the great majority of the portfolio by value, was deemed likely to experience a low or moderate impact. $200m was drawn down from the $600m credit facility in May 2020, with access to the remaining capital providing flexibility to react as required, going forward.
HVPE noted the following, in the management report section of the results announcement: “Challenging times like these are another reminder of the virtues of a well-diversified, global private markets investment programme in helping to mitigate downside risk. No single investment is sufficiently material on its own to cause serious concern; at 31 January 2020, the largest single exposure represents 1.9% of NAV. Furthermore, HVPE’s diversification by sector as well as by strategy, stage, geography, and vintage year should help to ensure that any potential negative developments in one part of the portfolio are offset, at least partially, by favourable outcomes elsewhere. See pages 32 to 33 for detail on portfolio diversification.
Continued, steady pacing of investment through the cycle is critical to achieve superior long-term risk-adjusted returns. HarbourVest funds are managed by experienced teams, and the investment manager will continue to seek opportunities for HVPE provided that forecast returns are suitably attractive on a risk-adjusted basis. HVPE’s ability to maintain a steady pace of investment allows it to participate in such opportunities as they arise, so that it not only navigates the current turbulence successfully but emerges even more strongly positioned in the long term.”
HVPE: HarbourVest Global Private Equity says majority of the portfolio likely to experience a low or moderate impact