Harbourvest Global Priva... Share Discussion Threads

[deadly] 21/7/2022 12:16

Up 10% in 2 days.

[skyship] 14/7/2022 07:41

At $/£ of 1.20 the May NAV = £39.57. Discount at 49.1% at 2015p.

[brwo349] 13/7/2022 20:21

This for me is a bargepole stock until I see an up to date net asset value.
78% of the portfolio was last valued on 31 December 2021



22 June 2022
HVPE ESTIMATED NAV PER SHARE UPDATE AT 31 MAY 2022

-- Estimated NAV per share of $47.49 (GBP37.68); down 0.1% in US dollar terms over the month
o 9% of Investment Portfolio (public company holdings) valued at 31 May 2022

o 13% valued at 31 March 2022, with remaining 78% valued at 31 December 2021

[riverman77] 13/7/2022 19:10

Almost on a 50% discount now - just incredible. Would be buying if I didn't already own a load of other PE funds, but tempted to switch some into HVPE.

[donald pond] 30/6/2022 09:52

I watched the recent results presentation. It was all very interesting but I particularly took away that the IPOs of things like Roblox, Coinbase and UIPath each added (IIRC) 30-50c to the NAV. But their recent pullbacks have only lost 1-8c. So it looks like HVPE sold a lot at the very top of the market. Not everything: they still have Klarna, but it seems they handled the bubble well and are no doubt investing now at much lower valuations than a year ago

[riverman77] 29/6/2022 14:56

Feels like we need an activist investor on board to force change or else wind this up and return capital to shareholders. This is what happened to Electra several years ago and surprised we have not seen more activity of this nature in the PE space given the huge discounts and negligible dividends.

[cartan1blue] 27/6/2022 21:27

Some interesting debate. What the Board seems to miss is that their register consists largely of retail shareholders. For the latter who hold shares directly, NAV performance means little, it doesn’t put food on the table. I’d add that discretionary managers who put this in retail portfolios will also be frustrated by the performance, as they’ll be constantly explaining to their customer why HVPEs performance is so poor during challenging markets. Bottom line for me, unless their is movement on either the divi or the buyback, then when it half way recovers, I’m sadly reducing what has been one of my largest positions for several years.

[skyship] 27/6/2022 14:30

I won't post verbatim; but pleased that Hickman replied to my email querying the no-dividend aspect.

Unfortunately he rather ducked the issue - "I would like to assure you that we take into account the views of all shareholders when considering topics such as the payment of dividends or the repurchase of the Company’s shares. We engage regularly with shareholders via a programme of meetings and events, and via our website at www.hvpe.com. If you would like to review our most recent results presentation, a video recording is available at the first link below."

He then directed me to P5 of their Annual Report; and beneath a ghastly pic of the Chairman rubbing his hands in glee at all the money the managers are making, came the piece below, which once again spectacularly fails, quite deliberately, to address the dividend solution as a DCM:

"Share Price and Discount to NAV The sterling share price increased by 48% over the year to 31 January 2022. Despite this very strong performance, the shares continue to trade at a discount to the value of the Company’s net assets. We remain frustrated that discounts in the listed private equity sector as a whole remain stubbornly wide, and note that the recent widening trend has also been reflected in the share prices of some newer entrants in the market which were previously trading at premiums.

In addressing HVPE’s discount, we are resolved to take the action that we believe is in the best long-term interest of shareholders. One option that we evaluate on a regular basis is buying back shares. At our most recent review, having consulted with our advisers, we concluded that reinvesting capital into new private markets opportunities, rather than buying back shares, should provide a better outcome for our shareholders over the long term. We have not seen evidence that buybacks are an effective discount control mechanism in our sub-sector. Instead, we will continue to look for ways to ensure that our long-term track record is understood and recognised by the market. With Directors personally invested in the Company, we are aligned with our investors and right now we believe this is the best course of action on behalf of all the Company’s owners. The Board will, however, re-evaluate this position on a regular basis, and to this end has developed a framework to ensure that discussions on the topic of share buybacks are well-structured, and focused on optimising long term shareholder returns."

[donald pond] 27/6/2022 14:21

Richard cancelled my call, I think he was wary about saying anything that differed from what has been publicly said already. From other comments on this thread I don't know if they have a new compliance officer who is over zealous.

[kenmitch] 27/6/2022 12:55

SKYSHIP.

You obviously feel very strongly, so I won’t pester you with different thoughts after this, especially as your opinions usually make sense.

But at present Private Equity discounts are often unusually large AND even Trusts that often traded at significant premiums are at quite big discounts. E.g HG 21% discount and 3i 13% discount. Oakley which I’ve held for ages is at 34% discount and ICG 41% and Pantheon and HVPE both on 46% discounts. I sold HVPE but if the discount gets to over 50% I’ll buy again and wait for discounts to narrow again.

After all at a discount of 50% a share would double without any increase in NAV if discount were to go altogether. I know that’s unlikely for HVPE but imo a significant narrowing of discounts across the sector is likely at some point and with no reason why HVPE can’t join in either with or without paying a dividend.

I do strongly agree about them not allowing the Mello Presentation to be transcribed for compliance reasons is a nonsense excuse. So I hope that is put to Hickman.

[skyship] 27/6/2022 12:20

ken - "Does HVPE performance really justify your view that “There is no buffer as there is no return.” HVPE performance isn’t bad:-"

Their performance has been great. The problem is that they provide ZILCH return to shareholders other than the comfortable feeling arising from an increasing NAV.

It is entirely logical that the discount drift from 15%, to 25%, 35%, now 45%; might continue on to 55%, 65%....and even higher.

Their business model is bust and the City has finally woken up to the fact that the only gainers are the managers. The shareholders receive NOTHING!

Their only bleat when questioned is that they are stepping up the financial PR. Well, that hasn't worked has it?

What is it that finally will make them do the honourable thing and make a dividend payout.

DP - please put this to Hickman; and also why are they not permitting the Mello presentation to be transcribed. They state COMPLIANCE. Why? Doesn't seem to bother anyone else. Were they perhaps given a hard time over the dividend issue in the Q&A session!

[mirandaj] 27/6/2022 11:13

Always found Richard Hickman very approachable for any queries in the past having held since 2016 and took out original stake at just over £27. A good investment to hold on to I think.

Richard Hickman:

Tel: [phone]

[e-mail]

Accounts webinar if not seen:

[kenmitch] 27/6/2022 10:11

SKYSHIP.

Might an even bigger discount attract investors to a fabulous bargain price? I like dividends but not token ones. We’ve argued buybacks to death but whatever the plus and minus points there’s no guarantee that other than temporarily they will see the NAV discount narrow.

e.g SREI (I hold) buybacks don’t seem to have helped with the crazy SREI current 32% discount and it was even wider last week.

Does HVPE performance really justify your view that “There is no buffer as there is no return.” HVPE performance isn’t bad:-



That’s similar to the sector average except over 10 years where at UP 345% it lags sector average of Up 455%.

Have just seen that HVPE share price is up 75p/3.7% so far today. Like others HVPE looks very oversold.

[kenmitch] 27/6/2022 10:00

I would also be very interested to know why they don’t think buybacks are a good idea, because I agree with them, but their reasons might be different to or additional to mine.

[donald pond] 27/6/2022 09:45

I'm speaking to Richard today. Last week was scuppered by a train cancellation on my side. Before we speak I will ask if he is happy for me to report back. I'm interested in understanding why they don't think buybacks now are a good idea. It may be, for example, that there are always limited life structures needing to sell PE holdings and real bargains can be bought right now. Hopefully I'll be able to report back

[skyship] 25/6/2022 15:48

The problem is their business model works fine in rising markets, but when there is a whiff of fear abroad people question what is there in HVPE for a shareholder.

With no dividend, what is the shareholder return? The NAV discount can widen out - as it has - from 15% to 25% to 35%; and now to 45%. Where will it stop? 55%, 65%. There is no buffer as there is no return.

I just wish I could attend their AGM and lambast the prats.

[skyship] 25/6/2022 15:38

Captan - buybacks would help in the short-term; whereas providing a yield would help in the medium/long-term.

[cartan1blue] 25/6/2022 13:55

Whilst a dividend would help, a buyback makes far more sense to me. That they are making new commitments when they could be buying back at these levels is outrageous.

[skyship] 24/6/2022 14:15

How incredibly stupid - compliance? Why? Did anyone hear it. If so, please, what was said about a dividend possibility?

[tania67] 24/6/2022 09:29

Sky - Mello website says "Richard’s presentation will not be recorded for compliance reasons and so will not be available after the webinar."

But FWIW, you saw the announcement yesterday of a purchase by a NED?

[ammons] 23/6/2022 17:13

Any feedback, donald pond? The fall here seems crazy.

[skyship] 23/6/2022 16:30

Veery annoying - had to miss the live webinar. Will see the repeat within 48hrs; but can anyone reveal what they had to say about a dividend. I did ask a question just in case they didn't cover in the presentation.

[davidosh] 21/6/2022 15:32

Harbourvest are on the Mello show at 2pm for those wanting a catch up and there will be ten minutes of Q&A. Registration is free as posted.

[melloteam] 21/6/2022 13:32

Mello Events is hosting a FREE Investment Trusts and Funds event on Thursday 23rd June at 12:30pm.

The programme is as follows:
12.30 pm Mello welcome from Karin Schulte and Company presentation from Ocean Dial
1.05 pm Company presentation from Invesco
1.40 pm Moira O’Neill from Interactive Investor analyses how retail investors are asset allocating in 2022
2.00 pm Company presentation from HarbourVest
2.35 pm Nigel Hawkins present on REIFs (Renewable Energy/Infrastructure Funds)
3.05 pm Company presentation from TB Amati Strategic Innovation Fund
3.40 pm Mark Bentley presents his best performing income trusts for 2022

To register for free, please click here: