Harbourvest Global Private Equity Limited Red.Shs USD · LSE:HVPD
Harbourvest Global Private Equity Limited Red.Shs USD — HarbourVest Global Private Equity — FY2025 Earnings Presentation
33 slides from Harbourvest Global Private Equity Limited Red.Shs USD's earnings presentation, Jan 31, 2025
Slide 1: HVPE Year in Review
HVPE Year in Review Annual Results 31 January 2025
Slide 2: Disclaimer
Disclaimer STRICTLY CONFIDENTIAL This document and this presentation have been prepared and issued by HarbourVest Global Private Equity Limited (the “Company”) for information purposes only and does not purport to be full or complete and may not be used in making any investment decision. It does not
Slide 3: Disclaimer
Disclaimer STRICTLY CONFIDENTIAL Performance Returns: Performance returns information (TV/TC (Total Value / Total Cost), TVPI (Total Value Paid-In), Portfolio IRR (Internal Rate of Return), TWR (Time Weighted Return), and IRR) shown net of fees and expenses are based on the Fund's Limited Partner ("
Slide 4: Forward-looking statements
Forward-looking statements Some of the factors that could cause actual results to vary from those expressed in forward-looking statements, include, but are not limited to: the factors described in this report; the rate at which HVPE deploys its capital in investments and achieves expected rates of r
Slide 5: HVPE in numbers
HVPE in numbers HarbourVest Global Private Equity (HVPE) is a listed investment company, launched in December 2007. Own shares in HVPE for global exposure to companies not listed on public markets. $4.0bn 1,000+ FTSE 250 Net assets private company exposures joined the index in 2015 (current position
Slide 6: Annual Results 2025: key messages
Annual Results 2025: key messages Gradual improvement in portfolio performance as market conditions stabilised Pickup in realisation rate, NAV per share return Larger credit facility ($1.2bn) although still below historical +7.3% secured levels Repurchased 3.4 million Total share repurchases of Shar
Slide 7: Move to SMA structure
Move to SMA structure Terms agreed in May 2025 • We recently finalised the details of the new investment Separately Managed Account (“SMA”) structure that will see HVPE’s capital deployed through a dedicated vehicle investing in third-party primary funds, secondaries, and direct Introduction co-inve
Slide 8: Portfolio & Positioning
Portfolio & Positioning
Slide 9: HVPE portfolio composition
HVPE portfolio composition We believe diversification optimises risk-adjusted returns Stage Strategy Geography Introduction Actual Actual Actual Actual Target Actual Target Actual Target North America 62% 60% Buyout 61% 55% Primary 49% 50% Portfolio & Europe 21% 24% Positioning Venture & Growth Equi
Slide 10: Innovative technology
Innovative technology Venture & Growth Equity portfolio: 26% focused on innovative technology The venture and growth equity portion of the portfolio, contains a range of exciting companies at the forefront of new and emerging technologies Introduction Portfolio & Positioning Financials Conclusion 10
Slide 11: HVPE vintage profile
HVPE vintage profile Investment in a broad range of vintages optimises risk-adjusted returns Introduction Vintage Profile: Percentage of Investment Portfolio (Partnerships) 13% 13%13% 13% 13% Portfolio & January '24 January '25 12% Positioning 11% 11% 11% 11% 9% 8% 8% 7% 6% 6% 6% 6% 4% 3% 3% 3% Fina
Slide 12: Investment Portfolio movement
Investment Portfolio movement Net gain on investments of $256 million in the 12 months ended 31 January 2025, with largest gains in Private Credit & InfRA, Direct Co-investment and North America Introduction Stage Strategy Geography 15% 15% 15% Direct Co-investment North America Buyout +10.1% Primar
Slide 13: Investment Portfolio movement: Stage breakdown
Investment Portfolio movement: Stage breakdown Within the Stage category, leading sub-segments were small buyouts, balanced venture and infra investments Introduction Mezzanine, Infrastructure & Real Assets Buyout (+6.4%) Venture & Growth Equity (+6.0%) (+8.7%) 15% Portfolio & Positioning Balanced V
Slide 14: Benefits of Diversification: HVPE Annual Returns
Benefits of Diversification: HVPE Annual Returns Financial Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Introduction 17.2% -2.9% 23.9% 20.9% 21.0% 58.4% 66.3% 9.8% 11.1% 8.7% 15.5% 0.0% 21.0% 19.8% 18.1% 40.2% 57.3% 6.5% 11.1% 7.8% Legend US Buyout 9.9% 3.6% 18.7% 17.1% 16.2% 38.8% 33.3% 5
Slide 15: Realised uplifts
Realised uplifts Uplift Performance Introduction Uplift average of 52%* since analysis began in 2012 M&A IPO (120 transactions) (14 transactions) 38% 23% 153% Sponsor to Sponsor, 55% Trade Portfolio & buyer, 45% Positioning 92% 63% 49% 50% Financials 42% 38% 41% 37% 37% Buyout 30% 31% 31% 24% 31% Ve
Slide 16: Realised Uplift Dispersion
Realised Uplift Dispersion Uplift dispersion Introduction 40 35 30 # of Companies Portfolio & 25 Positioning 20 15 10 Financials 5 0 <0% 0% - 20% >20% - 40% >40% - 60% >60% - 80% >80% - 100% >100% % Gain Conclusion Date as at 31st January 2025. Uplift: This analysis represents a subset of the transa
Slide 17: Portfolio company metrics
Portfolio company metrics Introduction 13.4% 18.6% 71% Weighted average revenue Weighted average EBITDA Of underlying companies increase increase increased EBITDA during the Portfolio & period Positioning Financials 4.5x 14.9x 73% Overall debt multiple Overall valuation multiple Of these underlying
Slide 18: Underlying Valuations are Conservative vs Public Companies
Underlying Valuations are Conservative vs Public Companies Public valuations (S&P World Index, simple average) vs HVPE Introduction 30.0x 25.0x 25.0x 19.1x 20.0x Portfolio & 17.5x Positioning 16.1x 15.9x 14.8x 15.2x 14.9x 14.9x 15.0x 14.0x 13.7x 14.0x 12.1x 12.5x 10.0x 9.8x 10.0x Financials 5.0x 0.0
Slide 19: Low Potential Tariff impact across the HVPE Portfolio
Low Potential Tariff impact across the HVPE Portfolio • Following April’s tariff announcement, our investment teams for each strategy analysed HarbourVest’s portfolios to assess the magnitude of risk and have engaged closely with HarbourVest’s GPs to understand their approaches and idiosyncratic ris
Slide 20: Value Creation in the Direct Co-Investment Portfolio
Value Creation in the Direct Co-Investment Portfolio • The chart below shows the breakdown of value creation for realised transactions in the most recent HarbourVest Co-Investment Funds in which HVPE has invested (HCF III – VI). Introduction • We generally would expect the majority of funds to show
Slide 21: Distribution Pool
Distribution Pool The distribution pool balance was $38 million as of 31 January 2025 • The pool was primarily funded by two sources during the year: Introduction ⁻ The seed funding diverted from a cancelled fund commitment ($75 million in total funded in three tranches) ⁻ 15% of ongoing monthly por
Slide 22: Financials
Financials
Slide 23: Overview of Portfolio Position
Overview of Portfolio Position New commitments managed to a lower level in recent years New commitments via the SMA will be managed carefully to preserve balance sheet strength Introduction New Commitments, Pipeline & Portfolio 5,000 Portfolio & 4,375 4,500 4,058 Positioning 4,000 3,633 3,616 3,500
Slide 24: Portfolio Cash Flows
Portfolio Cash Flows A net $62 million cash was invested over the reporting period, with distributions increasing and capital calls decreasing compared to the previous year Introduction Investment and Distributions 1000 40% 800 30% Portfolio & 600 20% Positioning 400 835 200 532 10% 308 290 310 381
Slide 25: Portfolio Cash Flows
Portfolio Cash Flows Credit Facility, Calls and Distributions as a percentage of NAV since inception HVPE experiences cycles in its net cash flow, with the credit facility used to bridge periods when capital calls exceed distributions Introduction This is essential to remaining fully invested throug
Slide 26: Expected Phasing of SMA Assets
Expected Phasing of SMA Assets HVPE is expected to start committing to the new SMA structure in 2025 • HVPE model scenarios show projected phasing of the new SMA assets over time, ranging from 17% to 68% of the total portfolio value by 2029 Introduction • The phasing of the SMA assets depends on the
Slide 27: Beneficial Balance Sheet Impact of the SMA
Beneficial Balance Sheet Impact of the SMA HVPE’s share of HVP fund-level borrowing on a look-through basis is expected to decline materially due to the new SMA structure Introduction • From 1 February 2025 new commitments will be made via the new SMA structure rather than through commingled funds •
Slide 28: New Commitments
New Commitments Total of $415 million committed to seven funds in the 12 months to 31 January 2025 Introduction Primary Secondary Direct Total Total Total Fund Name Description Description Amount Amount Amount Portfolio & Positioning International multi-strategy fund Global infrastructure and $195m
Slide 29: Balance sheet at January 2025
Balance sheet at 31 January 2025 Total Commitment Ratio Medium-term Coverage Ratio Commitment Coverage Ratio Introduction 30 April 30 April 170% 104% 108% 34% 33% 164% 171% 83% 119% 23% 39% 12-month range 12-month range 12-month range Portfolio & Positioning Total exposure to private markets investm
Slide 30: Total Expense Ratio ("TER")
Total Expense Ratio ("TER") HVPE’s TER reflects the total cost incurred by the Company in assembling and maintaining its portfolio of HarbourVest funds and co-investments Introduction 12 MONTHS TO 12 MONTHS TO 12 MONTHS TO FINANCIAL SUMMARY JAN ’25 JAN ’24 JAN’23 HVPE OPEX 1.33% 0.72% 0.36% Manageme
Slide 31: Total Expense Ratio trend
Total Expense Ratio trend HVPE Total Expense Ratio as a % of Average NAV Introduction 5.00% 4.50% 4.00% 3.50% Portfolio & 3.00% Positioning 2.50% 2.00% 1.50% 1.00% Financials 0.50% 0.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 HVPE Net Recurring Operating Expe
Slide 32: Conclusion
Conclusion
Slide 33: HVPE is well-positioned for the long term
HVPE is well-positioned for the long term One share. A world of private company opportunities. Own shares in HVPE for global exposure to companies not listed on public markets. Introduction +227% +13.1% +2.7% Inclusive Diversification Depth of Superior share price (£) total compound annual per-annum
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