HarbourVest Global Private Equity (HVPE) has passed its first continuation vote with over 98% support of shareholder votes.
Results from the annual general meeting held in Guernsey on Wednesday afternoon show the special resolution on HVPE’s continuation was backed by over 32.9m shares, 98.2% of the total that were voted. Turnout was 48%.
Over 590,000 shares voted against the £2.4bn investment company whose shares – in common with most London-listed private equity funds – stand on a wide 23% discount below their net asset value.
Ordinary resolutions to approve the annual report, directors’ pay, the appointment of KPMG as auditor and the re-election and election of the non-executive directors received over 99% support.
Chair Ed Warner said: “We are grateful to our shareholders for their overwhelming support in today’s continuation vote, the first within our sub-sector, which represents a strong endorsement of HVPE’s mandate, strategy, and future potential.”
He added: “We believe today’s result reflects shareholder support for the actions taken over the past 18 months to enhance shareholder returns, narrow the discount to NAV and strengthen alignment with investors. These initiatives have contributed to HVPE’s positive share price performance, with the shares currently trading close to an all‑time high.”
HVPE has been under pressure from activist investors Saba Capital, holder of a 10% stake, and Asset Value Investors, owner of 3.1% which published an open letter in January calling for the company to stop making new investments and consider winding down.
Despite this, it was expected to win the vote having subsequently pledged a $400m (£296m) tender offer this autumn with the proceeds of two big disposals since December. HVPE will also hold a further continuation vote by July 2029.
Shares in the company, which invests in the funds of US manager HarbourVest and stakes in unquoted companies, slipped 40p or 1.2% to £33.65. They have rallied 35% in the past year but more modest performance before that means shareholders have received a total of 56% over five years.
Warner also thanked senior independent director Francesca Barnes who stepped down after nine years on the board.
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