HarbourVest Global Private Equity (HVPE) H2 2024 earnings summary

Executive summary

• Net asset value (NAV) per share increased 7.3% year-over-year, with share price up 19.2% for the period ending January, driven by portfolio performance and capital allocation initiatives.

• Portfolio remains highly diversified, with exposure to over 1,000 private companies globally and a $4 billion net asset base.

• Share buybacks have exceeded $200 million since September 2022, with $106 million repurchased in the year, contributing to NAV per share accretion.

• Strategic shift to a separately managed account (SMA) structure aims to simplify operations, enhance flexibility, and reduce look-through gearing.

• A continuation vote for shareholders is scheduled for July 2026, reflecting a commitment to governance and shareholder democracy.

Financial highlights

• 13.1% compound annual growth rate in NAV per share (USD) over 10 years, outperforming the FTSE All-World Total Return Index by 2.7% per annum.

• Realized gains on investments totaled $151 million, with net gains of $256 million for the year.

• Buybacks contributed 1.9% to NAV per share growth.

• Portfolio companies achieved 13.4% revenue growth and 18.6% EBITDA growth, with prudent average debt multiples of 4.5x EBITDA.

• Total expense ratio (TER) rose to 2.46%, reflecting higher management and performance fees.

Outlook and guidance

• Management expects continued recovery in cash flow and more exits at premiums to carrying value.

• SMA structure finalized in May 2025, expected to simplify investment framework, increase control, and reduce look-through gearing.

• SMA assets projected to comprise 17%–68% of portfolio value by 2029, depending on distribution pace.

• Forecasts $180 million in distributions to the buyback pool for 2024, subject to market conditions.

• New commitments will be managed carefully to preserve balance sheet strength.