Edison publishes update on HarbourVest Global Priv

London, UK, 29 September 2020

Edison publishes update on HarbourVest Global Private Equity (HVPE/HVPD)

Following HVPE's August update, its last-reported NAV is now largely based on end-June valuations and captures the rebound in equity markets following the March downturn. In recent months, capital calls from underlying general partners (GPs) moderated compared to March/April while distributions to HVPE resumed (although are still below historical average). Consequently, HVPE was able to partially repay its credit facility and maintained a stable coverage ratio versus April. While the ratio remains relatively low compared to prior years, we still consider it a safe level.

HVPE's share price followed the equity market recovery and the current price implies discount to last reported NAV at 25%, narrowed from a multi-year low of 60% on 19 March 2020. The discount is still significantly larger than the five-year average discount of 21%. We understand the wider discount may at least partially reflect the macro uncertainty and is a common feature among private equity investment companies. Nevertheless, we note the valuations of most of the underlying companies HVPE has exposure to have already been updated since March 2020.  

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