The investment companies team at Kepler Trust Intelligence has produced a research article about HarbourVest Global Private Equity to examine the company in detail and create a snapshot picture that investors can use to aid their investment decisions. The article notes:
“HVPE offers a unique exposure to a diverse range of private companies. Investments are made on a global basis, and across the maturity profile of businesses, with underlying exposure to more than 1,000 businesses. Within this portfolio there are relatively early-stage businesses which may be in their hyper-growth phase, more stable growth opportunities, and those which are highly predictable and generating significant cash. Importantly, private companies offer exposure to very different markets and niches than publicly listed companies. HVPE offers a simple one-stop-shop for private markets exposure, but one that manages risk by not exposing investors to a narrow group of investments, themes or areas of the market.
HVPE’s portfolio is designed to capture the strong returns potential of private equity, but minimise risks. Historically, it has been a strong performer, with the annualised NAV per share total return of 10% outperforming the FTSE All World Total Return Index by c. 3% per year since HVPE’s IPO in 2007 (to 31/08/2024). Company-specific risks are minimised by diversification. Currently Shein, the Singaporean-based fast-fashion on-line retailer reportedly aiming to list on public markets soon, is the largest position at 2.2% of NAV, and the top ten holdings only make up 7.3% of NAV (as at 31/08/2024). In other ways too, the portfolio is designed to potentially ensure a smoother trajectory over shorter timeframes than one focused on only one segment of the private market such as venture or buyouts.”
A link to download the full research note can be found below:
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