Continued net asset value growth for HarbourVest

Closed-end investment company HarbourVest Global Private Equity announced its audited results for the year to 31 January on Friday, reporting continued growth in net asset value per share of 10% during the year, to $18.47.

The FTSE 250 firm said that equated to annual compound growth of 11% since 2010.

Its share price was up 37% to £11.95 at year-end, with a further rise of 7% to £12.78 between then and 10 May.

The company’s discount to net asset value narrowed from 26% to 19% year-on-year, with the board adding that it continued to close since the end of the reporting period.

It cited its “active portfolio management” as supporting the next wave of growth, with $425m committed to new HarbourVest funds, down from $526m, and $270m invested in private companies through HarbourVest funds, rising from $211m in the 2016 financial year.

A total of $148m value growth was created from the investment portfolio, up from $82m.

The board also said direct-co-investments and buyouts were the “key drivers” to its $251m of realisations, down from $363m, with larger exits realised at an average of 30% above carrying value.

Net cash stood at $175.2m on the balance sheet, with zero borrowings.

“I am very pleased to report another year of steady progress for HVPE,” said chairman Sir Michael Bunbury.

“This represents the eighth consecutive financial year of positive NAV growth and reflects the continuing success of HVPE's consistent investment strategy.”

Sir Michael said that, through committing to HarbourVest-managed funds, the company provided shareholders with access to a “ready-made and globally diversified” private equity programme - a strategy which he said aimed to deliver long-term capital appreciation for shareholders.

“From inception in December 2007 to 31 January 2017, HVPE has delivered a share price total return of 140% in sterling terms.

“As we approach our tenth year of existence, we remain confident that the private markets will continue to offer superior returns and that your company is well-positioned to take advantage of this.”