LONDON (Alliance News) - HarbourVest Global Private Equity Ltd announced the upcoming retirement of its chair and said its net asset value per share rose in its recent financial year, with the 2013 Direct fund its best performer.
As at January 31, the end of HarbourVest Global's year, NAV per share stood at USD24.09, up 12% from USD21.46 the year before. This 12% figure also put the private equity investor ahead of its benchmark, the FTSE All-World Total Return Index, which declined 7.1% in the year.
Over its recent year, HarbourVest Global recorded a USD218.4 million net gain on investment, leading to an overall increase in net assets of USD210.1 million. The USD218.4 million figure was equally composed of realised and unrealised gains on its portfolio. In its financial 2018 year, the investor recorded GBP248.9 million of gains, of which 63% were unrealised gains.
The strongest net asset value contributor in the period was the direct co-investment fund 2013 Direct, which added USD0.36 per share to HarbourVest Global over the year. Within 2013 Direct, there were significant realised and unrealised gains.
Fund X Venture also contributed strongly, adding USD0.24 to HarbourVest Global's NAV per share.
HarbourVest Global does not declare a dividend, instead delivering its return exclusively through share price appreciation. In its financial year, the company' share price rose 14% to GBP14.26 from GBP12.52, partly as a result of the weakening of sterling against the dollar. Share price growth equivalent in dollars was less, just 5.5% to USD18.75 from USD17.77.
"Through the life of the company since it was listed in December 2007 to 31 January 2019, HVPE's NAV per share has outperformed that of the benchmark FTSE All-World Total Return Index by a compound 380 basis points, or 3.8%, per annum," noted HarbourVest Global Chair Michael Bunbury.
"Our capacity to invest for further growth is supported by a strong balance sheet and an established global portfolio that is well-diversified by strategy and vintage year. We ended the year with a net cash position and have secured an increased credit facility of USD600 million, committed to January 2026, on finer terms. The balance sheet strength allows the company to be well placed to continue our long-term investment performance, taking advantage of high-quality opportunities in private markets, for the benefit of our shareholders," Bunbury added.
Bunbury has announced he plans to retire from the board at HarbourVest Global's annual general meeting in July 2020. He has chaired the company since its initial public offering in 2007. Independent consultants have been bought on to recruit a successor following a handover period.
"It has been a privilege for me to serve shareholders as chair of [HarbourVest Global] since the creation of the company, and it is proposed that I should continue to do so until such time as the board appoints my successor ahead of the AGM in 2020," said Bunbury.
A number of other board changes also were announced. Brooks Zug, a non-executive director of HarbourVest Global and co-founder of private equity firm HarbourVest Partners LLC, will stand down and will not seek re-election to the HarbourVest Global board at the 2019 July AGM.
HarbourVest Partners will put forward Carolina Espinal for election as Zug's successor. Espinal is managing director in HarbourVest Partners, having joined in 2004.
HarbourVest Global Senior Independent Director Keith Corbin also has decided to not seek re-election at the 2019 AGM. Alan Hodson will take his place, having been a director at HarbourVest Global since April 2013.
Shares in HarbourVest Global were down 0.8% at 1,615.68 pence on Wednesday.
HarbourVest Private Equity (HVPE)