Statement re HVPE 2011 Annual Report and Audite...
26 May 2011
HARBOURVEST GLOBAL PRIVATE EQUITY GROWS ECONOMIC NET ASSET VALUE 18.4% OVER THE
FINANCIAL YEAR ENDED 31 JANUARY 2011
* Economic NAV of $10.24 per share or $849.7 million at 31 January 2011
* Net positive cashflows of $10.6Â million during the financial year
* Pending sale of Nycomed, HVPE's largest underlying holding, expected to
increase estimated Economic NAV by $0.16 per share
HarbourVest Global Private Equity Limited ("HVPE"), a closed-end investment
company listed on Euronext Amsterdam and the Specialist Fund Market of the
London Stock Exchange, today announces its audited results for the financial
year ended 31 January 2011 and the publication of its Annual Report and Audited
Consolidated Financial Statements, showing that its Economic net asset value
("Economic NAV") rose by 18.4% over the year.
As at 31 January 2011, HVPE's Economic NAV was U.S.$849.7 million, or U.S.$10.24
per share. This represents an increase of U.S.$1.59 per share over the financial
year from 31 January 2010 (U.S.$8.65) and a significant milestone for HVPE as
Economic NAV per share exceeded its December 2007 IPO level of U.S.$10.00.
Of the U.S.$1.59 increase in Economic NAV per share, U.S.$1.14 resulted from
HarbourVest U.S. fund-of-funds, U.S.$0.40 from HarbourVest international fund-
of-funds, U.S.$0.19 from HarbourVest direct funds, and U.S.$0.15 from the global
secondary fund. Â Unrealised foreign currency losses decreased NAV by U.S.$0.02
per share, and operating expenses (including U.S.$0.02 of expense related to the
2010 Liquidity Plan) reduced NAV by U.S.$0.27 per share.
Portfolio highlights as at 31 January 2011 include:
* HVPE's portfolio included commitments to 24 HarbourVest funds at various
stages of development.
* HVPE had 58% of NAV invested in primary partnerships, 23% of NAV in
secondary investments, and 19% of NAV in direct investments.
* HVPE's portfolio was invested 65% in the U.S., 28% in Europe, and 7% in Asia
Pacific and the rest of the world.
* The Company's portfolio was invested 61% in buyouts, 34% in venture, and 5%
in other strategies.
* Reflecting HVPE's portfolio diversification strategy, no single company
represented more than 2% of NAV, and the top 25 companies represented
approximately 19% of NAV.
* During the financial year, HVPE invested £10.0 million in HarbourVest Senior
Loans Europe (HSLE) and committed U.S.$50.0 million to HarbourVest Partners
IX Programme, a U.S. fund-of-funds.
* The HarbourVest funds in the portfolio committed U.S.$158.0 million to
primary, secondary, and direct investments during the financial year.
* The Company's top 50 venture-backed companies by investment value at 31
January 2011 included Facebook, Greendot, Groupon, HomeAway, and Twitter.
* HVPE also had exposure to Skype Technologies, which announced its
acquisition by Microsoft Corporation in May 2011 at a significant multiple
over cost.
* HVPE had exposure to a total of 385 IPOs or M&A events within its underlying
portfolio of companies during the financial year. Â More than half of the IPO
and M&A totals by number represented liquidity events for companies in its
venture portfolio.
Commitments and balance sheet highlights as at 31 January 2011 include:
* Distributions received from HarbourVest funds increased 165% from the prior
financial year to U.S.$137.2 million.
* Capital calls increased 72% from the prior financial year to U.S.$126.6
million.
* Net positive cash flows of U.S.$10.6 million represented an improvement from
prior financial year outflows of U.S.$22.0 million.
* HVPE was 109% invested, which was unchanged from 31 January 2010.
* Total outstanding unfunded commitments were U.S.$543.5 million at 31 January
2011, down U.S.$79.5 million from U.S.$623.0 million at 31 January 2010,
despite U.S.$50.0 million of new commitments over the year.
* Net debt of U.S.$77.0 million at 31 January 2011 represented a Net Leverage
Ratio of 9.1%, largely unchanged since the prior year end.
* As at 31 January 2011, HVPE had a maximum amount available to be drawn down
from its U.S.$500 million credit facility of U.S.$409.0 million, compared to
U.S.$389.0 million at 31 January 2010, based on the facility's most
restrictive covenants.
* HVPE's Commitment Coverage Ratio (coverage of total unfunded commitments)
increased from 64% at 31 January 2010 to 78% at 31 January 2011; and its
coverage of allocated commitments increased from 89% at 31 January 2010 to
110% at 31 January 2011.
The Company's Annual Report and Audited Consolidated Financial Statements
provide further detail on:
* Diversification by NAV
* Largest managers based on NAV
* Largest underlying company investments
* Publicly-listed holdings
* Currency exposure
* Post financial year end events
Trading and Liquidity
In May 2010, HVPE initiated a Liquidity Plan, which involved listing the Company
on the Specialist Fund Market of the London Stock Exchange; a Secondary Placing
of 4.8 million existing shares at U.S.$5.75 per share; and the issuance of 6.9
million Put Rights to purchasers of the shares in the Secondary Placing (and
thereafter in the market). Â Subsequent to implementing the Liquidity Plan, the
Company has made significant progress in enhancing trading liquidity, with an
annualised share turnover rate of over 10% for the period following the
Secondary Placing through to 30 April 2011. During the period from 1 February
2010 to 31 January 2011, the Company's share price increased 20% to U.S.$6.00
per share. Â Subsequent to the financial year end, HVPE's share price has
increased 17% to U.S.$7.00 at 25 May 2011.
Recent Events Subsequent to Financial Year End
Pending Sale of Nycomed
On 19 May 2011, Takeda Pharmaceutical Company announced its intention to acquire
Nycomed, HVPE's largest underlying company at 31 January 2011, for €9.6 billion.
 HVPE holds Nycomed directly via an international direct fund and indirectly via
primary and secondary partnership positions for a total of 1.95% of 31 January
2011 NAV. Â The transaction, which is expected to close in September 2011, should
result in an increase of U.S.$0.16 in HVPE's estimated Economic NAV per share
from 30 April 2011 and in distributions of more than U.S.$30 million.
Share Buyback Programme
In March 2011, HVPE announced a Share Buyback Programme with the objective of
decreasing the discount to NAV at which the Company's shares are currently
trading. Â At current discounts to NAV, the programme represents an attractive
opportunity to invest in the existing HVPE portfolio in a manner that is
immediately accretive to NAV per share. Â Additionally, to the extent that
pricing gaps exist between third party buyers and sellers, the buyback programme
enables the Company to enhance liquidity by demonstrating pricing to the market.
Participation in Public Tender for Absolute Private Equity, Ltd.
Also, subsequent to the financial year end, in April 2011, HarbourVest announced
that HarbourVest-managed secondary funds, together with HVPE, will, through an
acquisition vehicle, make a public offer for all bearer shares of Absolute
Private Equity, Ltd. ("Absolute"). Â Absolute, an investment company incorporated
in Switzerland and listed on the SIX Swiss Exchange, primarily invests across
various sectors of the private equity market. Â The tender offer is for
U.S.$17.25 cash per Absolute share and is subject to a minimum acceptance level
of 50.01% and other customary conditions. Â At a 100% acceptance level, the
transaction values Absolute at U.S.$752Â million. Â HVPE's direct commitment to
the transaction is expected to be 10% of the purchase price, which would
represent an investment of U.S.$38 million to U.S.$75 million, depending on the
results of the tender offer. Â Absolute's Board of Directors supports the offer
and intends in its formal report to recommend that its shareholders accept the
offer.
Resignation of HVPE CFO
On 11 May 2011, HVPE announced that CFO Steve Belgrad had resigned from the
Investment Manager effective 31 May 2011, to take a senior position in the asset
management sector. Â The Investment Manager and the Board of Directors are
evaluating suitable candidates to replace Mr. Belgrad.
Conference Call Today
HVPE will host a conference call and webcast reviewing the Company and these
results
for investors and analysts today, Thursday 26 May 2011, at the following time:
11.00 Boston / 16.00 London and Guernsey / 17.00 Amsterdam
The webcast and accompanying presentation materials will be accessible through
links on HVPE's web site.
The webcast (with audio) will be accessible directly at
http://www-waa-
akam.thomson-
webcast.net/us/dispatching/?event_id=934156f7a5915ad59e6e1af1fa0a8544&portal_id=
0c66e69ef9b989911a5afc8d53d3a249.
The webcast (via telephone) will be accessible directly at
http://www-waa-
akam.thomson-
webcast.net/us/dispatching/?event_id=934156f7a5915ad59e6e1af1fa0a8544&portal_id=
29d1fc34a82751bc4c865d18b040661f.
The conference call will be accessible via the following numbers:
0808 234 7616 (U.K./Europe toll-free)
+44 (0)20 7365 8426 (U.K. local)
+1 617 213 8067 (International)
866 770 7129 (U.S. / Canada toll-free)
The participant passcode is 61528147.
The webcast will also be archived on the Shareholders section of HVPE's website.
The Annual Report for the financial year ending 31 January 2011 will be
available on HVPE's web site
at:
http://www.hvgpe.com/download/pdf/HVPE_2011_January_Annual_Report_FINAL.pdf.
Enquiries:
HarbourVest
Laura Thaxter Tel: +1 (617) 348 3695
Fishburn Hedges
Michelle James/Alastair Fairbrother Tel: +44 (0) 20 7839 4321
HVPE@fishburn-hedges.co.uk
Notes to Editors:
As previously disclosed, HVPE is now using Economic NAV as its primary reporting
metric for its Monthly Updates and management analysis. Â Economic NAV excludes
the fair value of the liability arising as a result of the issue of the Put
Rights as part of the Company's Liquidity Plan, and represents the most
conservative outcome upon the maturity of the Put Rights. Â The Company believes
that this is the most appropriate measure of economic value to holders of the
Shares. Â The U.S. GAAP NAV reported in HVPE's Audited Consolidated Financial
Statements at 31 January 2011 is U.S.$10.21 per share.
About HarbourVest Global Private Equity Limited:
HarbourVest Global Private Equity Limited ("HVPE") is a Guernsey-incorporated
closed-end investment company which has a dual listing on both the London Stock
Exchange and Euronext Amsterdam. Â HVPE is registered as an investment
institution with the Netherlands Authority for the Financial Markets. Â HVPE is
designed to offer shareholders long-term capital appreciation by investing in a
private equity portfolio diversified by geography, by stage of investment, by
vintage year, and by industry. Â It invests in and alongside HarbourVest-managed
funds which focus on primary partnership commitments, secondary investments, and
direct investments in operating companies. Â HVPE is advised by HarbourVest
Advisers L.P., an affiliate of HarbourVest Partners, LLC.
About HarbourVest Partners, LLC:
HarbourVest is an independent global private equity investment firm and an SEC
registered investment advisor, providing vehicles for institutional investors to
invest in
the venture capital and buyout markets in the U.S., Europe, and elsewhere
through primary partnerships, secondary purchases, and direct investments. It
was formed in
1982 and has committed more than U.S.$30 billion to investments over its 29-year
history. It currently has 236 employees in its Boston office and London, Hong
Kong, and Tokyo subsidiaries.
This announcement is for information purposes only and does not constitute or
form part of any offer to issue or sell, or the solicitation of an offer to
acquire, purchase or subscribe for, any securities in any jurisdiction and
should not be relied upon in connection with any decision to subscribe for or
acquire any Shares. Â In particular, this announcement does not constitute or
form part of any offer to issue or sell, or the solicitation of an offer to
acquire, purchase or subscribe for, any securities in the United States or to US
Persons (as defined in Regulations under the US Securities Act of 1933, as
amended ("US Persons")). Â Neither this announcement nor any copy of it may be
taken, released, published or distributed, directly or indirectly to US Persons
or in or into the United States (including its territories and possessions),
Canada, Australia or Japan, or any jurisdiction where such action would be
unlawful. Accordingly, recipients represent that they are able to receive this
announcement without contravention of any applicable legal or regulatory
restrictions in the jurisdiction in which they reside or conduct business. No
recipient may distribute, or make available, this announcement (directly or
indirectly) to any other person. Recipients of this announcement should inform
themselves about and observe any applicable legal requirements in their
jurisdictions.
The Shares have not been and will not be registered under the US Securities Act
of 1933, as amended (the "Securities Act") or with any securities regulatory
authority of any state or other jurisdiction of the United States and,
accordingly, may not be offered, sold, resold, transferred, delivered or
distributed, directly or indirectly, within the United States or to US Persons.
 In addition, the Company is not registered under the US Investment Company Act
of 1940, as amended (the "Investment Company Act") and shareholders of the
Company will not have the protections of that act. Â There will be no public
offer of the Shares in the United States or to US Persons.
This announcement has been prepared by the Company and its investment manager,
HarbourVest Advisers L.P. (the "Investment Manager"). No liability whatsoever
(whether in negligence or otherwise) arising directly or indirectly from the use
of this announcement is accepted and no representation, warranty or undertaking,
express or implied, is or will be made by the Company, the Investment Manager or
any of their respective directors, officers, employees, advisers,
representatives or other agents ("Agents") for any information or any of the
opinions contained herein or for any errors, omissions or misstatements. None of
the Investment Manager nor any of their respective Agents makes or has been
authorised to make any representation or warranties (express or implied) in
relation to the Company or as to the truth, accuracy or completeness of this
announcement, or any other written or oral statement provided. In particular, no
representation or warranty is given as to the achievement or reasonableness of,
and no reliance should be placed on any projections, targets, estimates or
forecasts contained in this announcement and nothing in this announcement is or
should be relied on as a promise or representation as to the future.
Other than as required by applicable laws, the Company gives no undertaking to
update this announcement or any additional information, or to correct any
inaccuracies in it which may become apparent and the distribution of this
announcement. The information contained in this announcement is given at the
date of its publication and is subject to updating, revision and amendment. The
contents of this announcement have not been approved by any competent regulatory
or supervisory authority.
This announcement includes statements that are, or may be deemed to be, "forward
looking statements". Â These forward looking statements can be identified by the
use of forward looking terminology, including the terms "believes", "projects",
"estimates", "anticipates", "expects", "intends", "plans", "goal", "target",
"aim", "may", "will", "would", "could", "should" or "continue" or, in each case,
their negative or other variations or comparable terminology. These forward
looking statements include all matters that are not historical facts and include
statements regarding the intentions, beliefs or current expectations of the
Company. Â By their nature, forward looking statements involve risks and
uncertainties because they relate to events and depend on circumstances that may
or may not occur in the future and may be beyond the Company's ability to
control or predict. Forward looking statements are not guarantees of future
performance. Â More detailed information on the potential factors which could
affect the financial results of the Company is contained in the Company's public
filings and reports.
HarbourVest Global Private Equity Limited is registered with the Netherlands
Authority for the Financial Markets as a collective investment scheme which may
offer participations in The Netherlands pursuant to article 2:66 of the
Financial Markets Supervision Act (Wet op het financieel toezicht). All
investments are subject to risk. Past performance is no guarantee of future
returns. Prospective investors are advised to seek expert legal, financial, tax
and other professional advice before making any investment decision. The value
of investments may fluctuate. Results achieved in the past are no guarantee of
future results.
This announcement is issued by the Company, which is registered with the
Netherlands Authority for the Financial Markets and whose registered address is
at Anson Place, Mill Court, La Charroterie, St Peter Port, Guernsey GY1 1EJ.
© 2011 HarbourVest Global Private Equity Limited. All rights reserved.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: HarbourVest Global Private Equity Limited via Thomson Reuters ONE
[HUG#1519016]
Latest directors dealings
- 9 hours ago Luceco
- 9 hours ago Helios Towers
- 10 hours ago Wise Class A
- 10 hours ago EDX Medical Group Plc
- 10 hours ago Naked Wines