In December 2007, HVPE secured a multi-currency revolving credit facility. The facility was renewed in January 2019 with a five-year rolling term. In August 2022, the facility increased from $700 million to $800 million and in June 2024, the facility increased from $800 million to $1.2 billion. Following receipt of notices in January 2023, the facility reverted to a conventional fixed-term arrangement.

Credit Facility

  • $1.2 billion total facility
  • $720 million available at 30 September 2024
  • $146 million held in cash at 30 September 2024

Please note: The cash balance and any amount drawn on the credit facility is deposited in a low-risk JP Morgan money market fund and is accessible for immediate utilisation as required.

Lenders are Ares Management Credit funds (“Ares”), Apollo-managed funds, Mitsubishi UFJ Trust Banking Corporation and The Guardians of New Zealand Superannuation.

Additional Terms

  • A commitment fee of 100 bps.
  • The margin on drawn amounts is 350 bps up to $300m drawn and 290 bps on amounts over $300m.
  • There is a minimum draw requirement of 40%.

Key Covenants

  • Asset Test Ratio: (1) company indebtedness limited to 35% of assets, with the value of the assets subject to certain diversification tests, and (2) total indebtedness (company indebtedness and fund level indebtedness) limited to 47% of assets, with the value of assets subject to certain diversification tests.
  • Non-Financial Covenants: Limitations restrict HVPE's ability to, among other things, make unduly concentrated commitments to funds, incur additional indebtedness or liens above the facility level, pay dividends above certain levels, or merge, consolidate, or substantially change its business without bank approval.

HarbourVest Partners ("HVP") Fund-Level Borrowing

HVPE has indirect exposure, on a look-through basis, to a pro-rata share of borrowing carried on the balance sheets of some of the HarbourVest funds in which HVPE is a Limited Partner (referred to previously as “embedded leverage”). The majority of this fund-level borrowing is for the purpose of cash flow bridging, a widely used private equity fund management technique. In addition, a smaller element of the borrowing at HarbourVest fund level is used for project finance. The HVPE team monitors the HarbourVest fund-level borrowing and ensures that possible changes in this borrowing (and hence the timing of capital calls payable by HVPE) are factored into the balance sheet scenario tests conducted as part of the annual commitment planning exercise. For further detailed information regarding the management of HVPE’s balance sheet and commitment levels, please see page 28 of the Annual Report and Accounts for the 12 months ended 31 January 2024.

At 30 September 2024, HVPE’s share of HVP fund-level borrowing, on a look-through basis, was $500 million.