(Alliance News) - HarbourVest Global Private Equity Ltd on Friday reported a jump in assets over financial 2022 and outperformed its benchmark, due to strong value gains.
The FTSE 250-listed investment company reported a net asset value per share as at January 31 of USD49.11, reflecting a 37% increase from USD35.97 on the same date the year before. This outperformed the FTSE AW TR Index, which only increased by 14%.
Net assets grew 34% to USD3.9 million from USD2.9 million.
HarbourVest recorded a NAV total return of 37% throughout the year, up from 30% the year before.
The company credited its performance to "strong" exit activity and value gains. HarbourVest registered USD1.06 billion of net gain on investments in financial 2022, contributing to an overall increase in net assets of USD1.05 billion. In financial 2021, it only registered a USD682 million net gain, reflecting a rise of 55% year-on-year.
"The higher overall net gains in absolute terms in this reporting period compared with the same period last year reflect increased exit activity and the strong performance of the underlying portfolio, particularly in overweight sector exposures such as tech & software and, to a lesser extent, medical & biotech," HarbourVest said.
Looking ahead, it is "convinced" that it can continue to deliver strong returns to investors.
"While mindful of the very severe economic and political challenges currently besetting global markets, the board and I feel optimistic about the long-term prospects for HVPE. We believe that investment into private companies presents an attractive opportunity for investors. As an asset class, it has proven to reward patience, and we remain convinced that this company can continue to generate superior returns for shareholders over the long term," Chair Ed Warner said.
HarbourVest shares were trading 4.6% higher at 2,358.00 pence each in London on Friday afternoon.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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HarbourVest Private Equity (HVPE)