Harbourvest Global Priva... Share Discussion Threads

[deadly] 26/7/2024 15:08

Getting very lively, any news?

[donald pond] 07/6/2024 08:17

Butting up against 2 year resistance here but that buyback is sizeable. Could easily see this run to £28 level if they continue. Imo this should be the go to PE option on the basis of the long term record and level of diversification it offers. There are challenges: they need to get the disposals pipeline going and the NAV to start increasing but it is incredibly cheap.

[raj k] 07/6/2024 08:02

I just watched the last HVPE annual report video and they say they are drawn 275million on the RCF. Does anyone know what ibnterest they pay on this RCF facility?

[tania67] 07/6/2024 07:57

Thanks Spangle. Yesterday saw the first actual buybacks since 21/3, so it looks like the extended credit might have been a necessary condition for starting the already-announced buybacks, rather than any hint of a change in policy.

[spangle93] 07/6/2024 07:54

£2.5MM-worth of shares bought back yesterday

[spangle93] 06/6/2024 08:15

Rambutan - thanks for the clarification, that's helpful... but it really needs the company to spell it out.

Tania - See information on post 513 ref evergreen distribution pool. While the discount remains at extreme levels relative to NAV, they'll use it as a buy back vehicle. AIUI, if this closes, then it could be diverted to dividends

The distribution pool is $52 million as of 30 May 2024
Looking ahead, the distribution pool is funded by two sources:
• The seed funding diverted from a postponed fund commitment ($75 million in total funded in three tranches)
• 15% of ongoing monthly portfolio distributions

Buybacks year-to-date total $21.5 million (714,154 shares purchased at an average price of £23.67)
We expect to allocate a total of $150-250 million to the Pool across 2024 and 2025, inclusive of allocations to date and the seed amounts

[tania67] 06/6/2024 07:44

Today's announcement notes that the larger credit line gives "greater flexibility in capital allocation decisions".
At one level, this statement is just a truism. But is it also a hint that they might be considering boosting the buyback programme? I fear that may well be wishful thinking on my part. Was there anything in the presentations this week that helps us interpret this change?

[rambutan2] 05/6/2024 23:47

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.

[spangle93] 05/6/2024 13:03

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

[apple53] 05/6/2024 08:29

Thanks for the link Spangle

[spangle93] 04/6/2024 12:19

Today's investor meet presentation slides



Slide 17 on the Distribution Pool was interesting

[donald pond] 30/5/2024 21:43

I would prefer buybacks to a divi tbh. A tender would be even better. Most of all though we need to see the nav increasing. It has been a very odd market with the US economy booming, most markets at all time highs, and yet ipo activity still depressed. Politics as well play a part with Shein getting pushback now on its ipo.

[skyship] 30/5/2024 20:59

Took a good profit. Disappointed that they still avoid paying a divi.

[spangle93] 30/5/2024 17:16

Citywire summary



With 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’ policy with a high level of visibility and said the board had not been slow to act on the discount.

‘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

[its the oxman] 30/5/2024 15:48

Results have helped nudge us up today though the bar is low given the extent of our discount to nav. Be nice to get through 2400p.

[spangle93] 30/5/2024 08:08

Link to Finals RNS


Link to accompanying presentation

[skyship] 17/5/2024 08:26

Finals on 30th May; and an IM Presentation a few days later.

I've bought back in today, hoping that they may finally announce a fairer deal for shareholders. Forlorn hope perhaps; but the 42.8% discount represents outstanding value nevertheless.

[spangle93] 16/5/2024 11:16

Last NAV was £40.11 (not a typo)

[its the oxman] 16/5/2024 10:21

Still looking forgotten here. Perhaps a catch up rally over results.

[rambutan2] 24/4/2024 04:21

I note that last month was the first for a year in which distributions were higher than calls. During that period calls totalled $590m, with distributions at $312m, so a $278m deficit. Fund level borrowing has remained at around $500m throughout the period. But the credit facility was undrawn a year ago, with net cash of $140m. Now it is $325m drawn, with $110m cash. So gearing is currently approx $720m ie in the high teens. I wouldn't have thought most shareholders or the board would want it much higher in the current uncertain climate. So, like it or not, fond imaginings of big buybacks ala Pantheon can be forgotten about for the time being.

[its the oxman] 12/4/2024 10:14

Added sub 2300p. Bit late but still looking low relative to a lot of other things that are moving up. Catch up to come hopefully.

[donald pond] 08/4/2024 16:02

I've written a piece. Please read and comment in support https://x.com/donaldpond6/status/1777337279679275449?s=46&t=YfR7OyhMlqZLtI-h86iCxA

[mozy123] 08/4/2024 11:03

Need an activist PE firm to take a huge shareholding and start chasing the weasels on the board.

[skyship] 08/4/2024 08:56

dp - absolutely, said it all along, by maximising AUM (no dividends and parsimonious buybacks) they maximise their fees. Sod the shareholders...