29th May 2025 10:49
(Alliance News) - HarbourVest Global Private Equity Ltd announced an improvement in net asset value total return, but continued to underperform against its benchmark which is boosted by the well-performing Magnificent 7.
The London-based investment fund with interest in various sectors including technology, infrastructure and energy said net asset value per share was USD54.17 as at January 31, up 7.3% from USD50.47 a year prior.
NAV total return was 7.3% in the financial year ended January 31, an improvement from 4.0% in financial 2024, but underperforming against its benchmark, the FTSE All-Share World TR index in USD, which had a return of 21%, which was up from 15% in financial 2024.
However, HarbourVest highlighted that its benchmark was significantly inflated by the "Magnificent 7" stocks which had a return of 45% during the company's financial 2025.
The Magnificent 7 are seven big US tech stocks with a market cap of over USD1 trillion each, namely Alphabet Inc, Amazon.com Inc, Apple Inc, Meta Platforms Inc, Microsoft Corp, Nvidia Corp and Tesla Inc.
HarbourVest Global said it has so far bought back USD197 million since it started share buybacks in September 2022.
Looking ahead, Chair Ed Warner said: "The turbulence in markets in recent weeks, as investors attempt to separate noise from signal in the pronouncements from the US administration, has had the immediate effect of dampening activity in private markets. Early signs are that this will prove merely a postponement of transactions and that, as confidence resettles, the pick-up in volumes evident across the turn of the year will resume."
He added: "While the effect on HVPE may be a lower overall quantum of distributions from our investments in 2025 than originally anticipated before the tariffs shock, we remain confident that HVPE's high quality, diversified global portfolio ensures it is very well placed to capitalise on the many exciting opportunities that the improving conditions in private markets will present. On behalf of the board, I would like to thank all shareholders for your continued support."
HarbourVest Global shares rose 0.8% to 2,453.91 pence each on Thursday morning in London, giving it a market capitalisation of GBP1.81 billion.
By Tom Budszus, Alliance News slot editor
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