HVPE: Half Year Results
HVPE RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2024
Resilient performance
Outlook increasingly positive
HarbourVest Global Private Equity Limited (“HVPE” or the “Company”), a FTSE 250 investment company with global exposure to private companies, managed by HarbourVest Partners, today announces its unaudited results for the six months ended 31 July 2024.
Net asset value (“NAV”) growth
- NAV per share growth of 3.0% in the half-year to a new high of $51.98 (31 January 2024: $50.47)
- Steady improvement in exit numbers, driven by M&A, with an increase of 37% compared to the six months to 31 July 2023, and realised at an average 29% premium to carrying value
- HVPE was a net investor over the period, with $134m cash invested.
Long term outperformance of public markets continues
- Over the 10 years to 31 July 2024, HVPE has delivered growth in NAV per share of 239%, while the FTSE All-World Total Return (FTSE AW TR) Index returned 144% (USD)
- Underlines the benefits of HVPE’s diversification and high-quality portfolio.
Significant distribution pool and increased balance sheet flexibility
- Distribution Pool initiated 1 February 2024, ring fencing capital to be deployed for share buybacks or special dividends
- $45 million shares repurchased in 6 months to 31 July 2024, with HVPE actively buying back shares on 39 of the 126 trading days in the six month period
- From September 2022 to 18 October 2024, we bought back $120m of shares, adding 2.7% to NAV per share – making it one of the largest share buyback programmes in the sector
- New Revolving Credit Facility of $1.2bn secured, giving additional working capital headroom and greater flexibility in capital allocation decisions.
Well-positioned to benefit from upturn in private market activity
- Signs of steadily improving investor confidence, in spite of ongoing macro and geopolitical challenges
- Investment environment increasingly supporting a more active phase in the private markets cycle
- Exits expected to continue improving, supporting cash realisations and HVPE’s Distribution Pool, to the benefit of shareholders.
Ed Warner, Chair of HVPE, said:
“I am pleased to report steady growth in HVPE’s net asset value (NAV) in the first six months of this financial year, as well as signs of a recovery in the Company’s share price. This reflected a gradual improvement in global economic and financial market conditions, as well as the early positive effect of the Distribution Pool introduced by the Board at the start of the year.
“However, with short-term UK political uncertainty weighing on investor sentiment, gains in our shares during the first six months of the financial year were subsequently eroded. We view the future for HVPE with confidence and believe that the current share price in no way reflects the performance by the Company over many years and the opportunities in private markets that we foresee ahead.”
Semi-Annual Report and Accounts
To view the Company’s Semi-Annual Report and Accounts please visit HVPE’s results centre: https://www.hvpe.com/shareholders/results-centre/. Page number references in this announcement refer to pages in this report. The Semi-Annual Report and Accounts will also shortly be available on the National Storage Mechanism, which is situated at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Semi-Annual Results Presentation
HVPE will publish a new presentation on its website to supplement the publication of the Semi-Annual Results for the six months ended 31 July 2024. The presentation will be available to view and download from http://www.hvpe.com by the close of business today.
Below is an interview with Chairman Ed Warner & Managing Director, Richard Hickman