(Alliance News) - HarbourVest Global Private Equity Ltd on Wednesday said it underperformed against its benchmark index in financial 2020 despite a increased investment gains.
As at January 31, the private equity investor reported a net asset value per share of USD27.58, up 15% from USD24.09 the same date the year before.
HarbourVest Global's benchmark, the FTSE All World Index, gained 16.7% in the same period.
HarbourVest's share price at the end of January was GBP18.36, or USD24.15, reflecting a discount to net asset value of 12%.
Shares in the investor were down 1.5% at 1,537.00 pence on Wednesday in London.
Within the year, HarbourVest reported a USD289.3 million net gain on investments, leading to an increase in overall net assets to USD278.8 million. This is compared to net gains of USD218.4 million made in the prior year, which led to net assets of USD210.1 million.
In percentage terms, the company's Primary portfolio was the best performing strategy, delivering value growth of 16%.
Geographically, the European portfolio delivered the strongest gains, with a value rise of 15.8%, followed by the US portfolio, which returned 15%.
Finally, in terms of stage Venture & Growth Equity was the top performer, growing by 18%, followed by Buyouts which returned 15%.
"Since the end of our financial year, the outbreak of the Covid-19 pandemic has sent shockwaves through the economy. The board and investment manager, HarbourVest, acted quickly to assess the potential impact on HVPE and its portfolio. Several years of strong growth and careful management have endowed HVPE with a strong balance sheet, ensuring it is well-placed to capitalise on the opportunities that may lie ahead," said Chair Michael Banbury.
"The private equity industry is structured with a view to long-term value creation, and this allows for considerable flexibility in times like these. Furthermore, HarbourVest has almost four decades of experience managing through previous global events and economic crises," Banbury added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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HarbourVest Private Equity (HVPE)