HarbourVest’s funds have record realisations in H1

Realisations were driven in part by secondaries, which also fueled growth of the firm's investment portfolio.

HarbourVest Global Private Equity Limited had record realisations in the first six months of the year ended 31 July, with a large contribution from secondaries, according to a report from the firm.

In the first half of the year, HarbourVest funds and co-investments distributed $187 million back to HVPE, which is HarbourVest Partners’ listed fund of funds. Realisations included $19 million from global secondaries fund Dover VII and $13 million from global secondaries fund Dover VIII, for a total of about $32 million.

This compares with total realisations from its secondaries funds of $16.6 million in the same period last year and $37.7 million for the full year ended 31 January.

HPVE believes that total cash realisations for the full year will roughly equal the record $356 million received during the fiscal year ended 31 January. Total cash realisations for the first half of last year were $146.6 million.

HVPE also grew its portfolio by 6 percent, or $84 million, in the first half of the year, mainly driven by its secondaries investments, which outperformed the primary fund portfolio.

“Secondary performance was led by an increasing valuation for South African facilities management provider Tsebo Outsourcing and HVPE’s co-investment in Conversus Capital,” according to the report. Tsebo Outsourcing is held via Rockwood Private Equity, a South African private equity firm.

During the first six months, HVPE also invested $29.3 million in Dover VIII, representing all its investment within secondaries funds for that period. The investment was to fund the purchases of venture and buyout assets in the US, Europe, Asia Pacific and emerging markets.

That’s up from $19.4 million for the same period in 2014. For the financial year ended 31 January, it invested $42.4 million in secondaries funds. HVPE also invested more than $72 million in various fund of funds that have the capability to invest in secondaries.

Meanwhile, HVPE’s HarbourVest fund of funds and secondaries funds made $83 million of new commitments in eight secondaries investments in the first half of the year.

As of 31 July, secondaries represented about 36 percent of the HVPE’s investment portfolio net asset value, compared with 49 percent within primary investments and 15 percent in direct investments.