Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Harbourvest Global Private Equity Limited | HVPE | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 2,365.00 | 14:31:11 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 2,380.00 | 2,345.00 | 2,380.00 | 2,365.00 |
| Industry Sector |
|---|
| EQUITY INVESTMENT INSTRUMENTS |
| Top Posts |
|---|
Posted at 03/11/2024 20:20 by steelbreeze The Investor Presentation on Tuesday 5 Nov is a good chance to grill them over their pathetic buyback policy. To me the key questions are:HVPE recently made a large new fund commitment. What return is anticipated on this investment? How can this be expected to outperform the instant and risk-free 72.4% NAV uplift that would be earned by using this cash instead to buy back more shares at 58p in the pound (a 42% discount)? HVPE presumably expects to outperform listed equities. By paying no dividend (whilst most equities do) it must therefore expect to become an ever-larger proportion of investors’ portfolios. But the current massive discount clearly shows that investors do not want to hold even the current NAV. Will the Board finally accept that shareholder interests would be best served by reversing this, i.e. for the fund to shrink substantially by making no new commitments and instead distributing 100% of cash receipts? |
Posted at 24/10/2024 07:53 by spangle93 Update view of future in the latest half year results"Steady improvement in exit numbers, driven by M&A, with an increase of 37% compared to the six months to 31 July 2023, and realised at an average 29% premium to carrying value" "Signs of steadily improving investor confidence, in spite of ongoing macro and geopolitical challenges Investment environment increasingly supporting a more active phase in the private markets cycle Exits expected to continue improving, supporting cash realisations and HVPE's Distribution Pool, to the benefit of shareholders." "We view the future for HVPE with confidence and believe that the current share price in no way reflects the performance by the Company over many years and the opportunities in private markets that we foresee ahead." |
Posted at 13/10/2024 10:49 by the millipede The problem here is surely the debt?Debt has appeared just at the moment when literally no one will touch debt fuelled private equity and the plan seems to be to increase it. I suspect this is why institutional investors are largely avoiding. HVPE need realisations and positive cash flow. But till then, deserve a wider discount than other PE funds IMO. |
Posted at 15/8/2024 18:23 by spangle93 HVPE presenting on investor meet on Sept 5th, 11am |
Posted at 05/6/2024 22:47 by rambutan2 Spangle, its real key differentiator is the big chunk in VC, and not just ordinary VC, but elite level managers which have been closed to new investors for years. Apart from PIN, which holds a very small amount of VC, no other PE trust holds any. That is because apart from the very very best VC, buyouts will outperform. And none of the other trusts have access to the top stuff. |
Posted at 05/6/2024 12:03 by spangle93 apple - the video is quite detailed on performance and holdings - it was intended to introduce new investors to this area, but I think it would benefit experienced folks like yourself more than people looking to enter PE.It makes lots of noise about its 10-year performance vs the sector, but does acknowledge that some years are better than others, and that the last couple of years have been pretty lean. It also doesn't hide the negative cash flow over the last year, due to a shortage of deals. They have more more set aside for promotion, and have committed to a formula that will be used for distribution to shareholders (though with a discount above 40% this will initially just be for buy backs) I would have liked a bit more commentary on how HVPE differs from other PE funds (rather that "it doesn't pay dividends"). It makes sense if you're spruiking it to say "why buy HVPE versus others" than "why buy PE". However it does (like a few other commentators) feel that deals are more likely in 2024, and exits are generally at a premium to a conservative carried value. Whether it's the best PE fund, I couldn't say. I own stocks in 4, plus a couple of others like SMT that have a PE component. But it has scale, a big discount as a buffer to what's becoming clearer isn't an inflated NAV, and hopefully a swing of the pendulum this way when the interest rates start falling, so I'll hold |
Posted at 04/6/2024 11:19 by spangle93 Today's investor meet presentation slidesSlide 17 on the Distribution Pool was interesting |
Posted at 30/5/2024 16:16 by spangle93 Citywire summaryWith the company planning to treble the amount of money for share buybacks in the next two years to tackle its 42% discount, the widest in its peer group, chair Ed Warner said: ‘The investment case for HVPE remains compelling. The company has outperformed public equity markets over the past 10 years, and we are optimistic that this will continue in the long term.’ .... In February HVPE announced it would create a distribution pool, storing 15% of cash profits for share buybacks and special dividends to enhance shareholder returns while their stakes were undervalued. Around $52m has been allocated to the pool, though this is expected to rise to between $150m and $250m in 2024 and 2025. Speaking to Citywire, Warner stressed the manager would not be deducting any costs from the distributions, an ‘evergreen&rsq ‘I don’t accept that [we were slow to act] on the basis that HVPE has been in existence since 2007 and has significantly outperformed the public markets and pretty much all the peer group by taking a long-term view. I’ve watched some other funds make decisions and come up with policies that, to my mind, they might regret at leisure. ‘And that’s why we came up with something which is very much evergreen – it doesn’t have caveats around where our discount might be at any one time and what calls on the balance sheet of the funds might be that would then determine buybacks. We’ve thought very carefully about the need to give shareholders dependability and visibility,’ he said. Investors can look at HVPE’s monthly net asset value returns, see what the distributions are and work out exactly how much will be spent on buybacks, he added |
Posted at 04/2/2024 20:24 by cerrito I held HVPE about 8 years ago and was impressed by Harborvest when they managed £50m for a pension fund I was involved in the last decade but they have been out of sight out of mind for me till I read today the following in Citywire.Will contain nothing new for many of you but interesting for some of you will be a good synopsis. quote HarbourVest Global Private Equity (HVPE) hopes to finally narrow its wide share price discount after it announced plans to return more capital to shareholders and move to a fully independent board. In response to shareholder feedback, including from wealth manager Quilter Cheviot, which began red-carding weak boards last September, the global private equity investor will establish a ‘distribution pool’ funded by profits on disposals that will be used for share buybacks and special dividends. The board and manager have agreed that 15% of cash realisations will go to the pool, which launches immediately, helped by a decision to place on hold a ‘specific̵ The company has languished on a discount of about 40% since 2022, giving the £3.1bn portfolio of funds and direct company stakes a market value of £1.8bn. A £25m buyback plan launched last May did nothing to move the dial. HVPE has purchased £45m worth of shares since September 2022 but expects the returns from the pool to be ‘materially greater’. As an indication, it said total annual cash proceeds received from disposals averaged $568m (£448.9m) over the last three calendar years. HVPE said that in deciding the timing, amount and nature of distributions, it would take into account the macroeconomic environment, the discount, market sentiment and ‘relative merits of distributing capital against the potential benefit of committing to new investment opportunities’ Ed Warner, chair of HVPE, said he had ‘engaged actively’ with shareholders in coming up with the proposals, and that the ‘new, more flexible policy, including the potential to pay dividends for the first time since HVPE was created, will make a significant difference to shareholders’. ‘It will help ensure they benefit more directly from the strong value growth delivered by HVPE’s high-quality portfolio, which has consistently outperformed public market benchmarks over the long term,’ he said. HVPE has delivered total underlying returns of 121% and 349% over five years and 10 years respectively, compared with the MSCI World, which rose 77% and 210%. However, investors haven’t reaped all the benefit as the shares have returned 62% and 254% over the same periods. Activity from the private equity sector has picked up in recent months after Pantheon International (PIN) was applauded by analysts for its ‘bold’ £200m buyback plan, with the board called ‘a leader’ in the space. Earlier this month, Abrdn Private Equity (APEO) said it was planning to use proceeds from selling its stake in Dutch discount retailer Action to start a buyback programme. Board independence The investment company also improved its governance structure following feedback from shareholders, including wealth manager Quilter Cheviot, who holds 4.6% of shares. Carolina Espinal, a managing director at HVPE, will not stand for re-election as a non-executive director at the annual general meeting in July. As a result, the board will be fully independent of its investment manager. However, Espinal and Richard Hickman, another managing director at HVPE, will be non-voting participants of the board and join the investment committee alongside managing director John Toomey and chief investment officer Greg Steno. ‘Board independence is an increasingly important area of focus for investors and I am confident HVPE will be viewed as having adopted best practice in this regard,’ said Warner. In September, the wealth management firm said it was opposed to employees of a trust’s fund manager sitting on the board as a non-independent as it set out its wider expectations for boards of the sector. Gemma Woodward, head of responsible investment at Quilter Cheviot, said she had engaged with the private equity company on independence and was ‘really pleased to see HVPE’s board take the move to become fully independent’. ‘It is good to see the power proactive engagement can have to help get boards acting in the interests of shareholders,’ said Woodward. ‘This sets a strong example to other trusts within the sector, which continue to have manager representation on the board.’ Quilter Cheviot’s sister company Quilter Investors also has a stake in HVPE with 2.5% of shares. Other large shareholders include M&G with 7.5%, Evelyn Partners and Lothian pension fund with 5.6% apiece, and Schroders with 5%. |
Posted at 17/10/2023 08:18 by the real stan Maybe PIN will do the work for them. When investors see the discount differential they'll sell PIN and exchange for HVPE! |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Hot Features
Premium
