14th Apr 2026 09:16
(Alliance News) - HarbourVest Global Private Equity Ltd on Tuesday said a plan to "enhance shareholder value" could see it return USD1 billion in the years to come.
The firm, with a diversified portfolio of private markets investments, said it will also put "new commitments on hold" and plans to increase the amount it puts towards a distribution pool.
HarbourVest Global shares shot up 3.4% to 3,127.69 pence each in London on Tuesday morning, for a GBP2.20 billion market capitalisation.
"HVPE shares are near an all-time high but currently trade on a wide discount to NAV. We believe the initiatives announced today represent a bold step forward in narrowing that gap and enhancing returns for shareholders," Chair Ed Warner said.
The company plans to distribute at least USD500 million, about 12 of net asset value, to shareholders in 2026. It noted USD400 million will come in the form of an autumn tender offer, with USD100 million through share buybacks. The tender offer follows "extensive discussions with a range of shareholders" and is subject to a continuation vote passing in July.
The firm plans to distribute around 5% to 10% of net asset value annually until the following continuation vote, also through tender offers and buybacks.
"This implies a total capital return of approximately USD1 billion if the vote is held in July 2029. The existing distribution pool mechanism will continue to form the basis for the annual allocations, with factors such as balance sheet strength, discount to NAV, market conditions and views of major shareholders being key determinants of the outcome in any given year," the company added.
"For the remainder of 2026, 100% of proceeds from any secondary sales will be allocated to the pool. The USD300 million of proceeds from the sale announced in December 2025, of which the first tranche (USD136 million) was received on 31st March 2026, will be allocated entirely to the pool. This will provide substantially increased capacity for shareholder distributions for the remainder of the year. The allocation of natural portfolio distributions to the pool will remain at 30%."
Back in January, Asset Value Investor urged HarbourVest Global Private to prioritise shareholder returns and consider running a formal sales process, warning it may vote against the trust's continuation.
"We are firmly of the view that further significant initiatives are necessary and should be explored well ahead of a potentially failed continuation vote," Asset Value Investors said at the time.
Asset Value Investors managed London-listed AVI Global Trust PLC.
According to a regulatory filing in February, Saba Capital Management, which has pushed for change at other London-listed investment trusts, has a 5.0% stake in HarbourVest.
HarbourVest Global Chair Warner said Tuesday: "The scale of the tender offer we are launching is unprecedented in our sector, and it reflects the confidence we have in HVPE's ability to generate liquidity. The board continually assesses a wide range of strategic options to enhance shareholder value, and these initiatives reflect the board's commitment to a closer correlation between the company's NAV and share price.
"We remain committed to HVPE's unique investment proposition, centred around providing a sector-leading private markets programme available to all investors. With the initiatives announced today, we believe that the opportunity ahead for HVPE shareholders is even more compelling, and we look ahead to the future with renewed optimism, I would like to thank all of our shareholders for their ongoing support."
By Eric Cunha, Alliance News news editor
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