HarbourVest grows net assets to $924m

The Euronext-listed firm has reaped a 9.1% gain in net asset value, driven primarily from HarbourVest US fund of funds.

HarbourVest Global Private Equity has grown its net asset value by 9.1 percent to $924 million for the six month period ending 31 July. The gain gives the Euronext-listed company its highest valuation since HVPE came to market in 2007, according to an unaudited report released this week.

The 9.1 percent gain, equivalent to a 93 cent increase per share, came primarily from HarbourVest US fund of funds, which grew 48 cents per share. HarbourVest direct funds recorded a 15 cent gain per share, while its international fund of funds grew 14 cents per share. The company’s global secondary fund increased 8 cents per share.

Earlier this month, HarbourVest committed $87 million as part of a deal to acquire listed Swiss peer Absolute Private Equity. HarbourVest faced a number of hurdles in its attempt to acquire APE, with activist shareholders proving a thorn in its side. HarbourVest launched an offer of $17.25 per share for APE in April, worth up to $752 million. HarbourVest then increased its bid to $18.50 a share in July, valuing APE at $806 million. That increase was reportedly in response to an attempt by Swiss asset management group Alpine Select to acquire Credit Suisse’s 20 percent shareholding, thereby foiling HarbourVest’s takeover bid. The final offer of $18.50 per share values APE at $820 million, if approved by 100 percent of APE shareholders.

During the six-month period ending 31 July, HarbourVest funds committed approximately $50 million to primary investments, $20 million to secondary investments and $29 million to direct investments on HVPE’s behalf. HVPE has 55 percent of its net asset value invested in primary partnerships, 23 percent in secondary investments and 22 percent in direct investments.

HarbourVest recorded 78 M&A exits during the six-month period and 19 initial public offerings. Notable exits include pharmaceutical company Nycomed, which was valued at 4.7 times cost as of 30 June, and Australian software company MYOB, which was valued at 4.6 times cost as of the end of June.

HVPE received $77 million in distributions from HarbourVest funds between 1 February and 31 July, over half of the $137 million distributed during the previous financial year.