In December 2007, HVPE secured a multi-currency revolving credit facility. The facility was most recently renewed in January 2019 and is an evergreen structure with a five-year rolling term. In August 2022, the facility increased from $700 million to $800 million.
- $800 million facility
- Five-year evergreen structure
- Full $800 million available at 18 November 2022 (date of latest NAV release)
- $229 million held in cash at 31 October 2022
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 Credit Suisse, Mitsubishi UFJ Trust Banking Corporation and The Guardians of New Zealand Superannuation ($400 million, $300 million and $100 million, respectively).
- Blended rate of 95 basis points on undrawn amounts
- For drawn amounts up to $300 million, borrowing at SOFR plus 250 basis points; additional 40 basis points for balances over $300 million
- 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 9 of the Semi-Annual Report and Accounts for the six months ended 31 July 2022.
At 31 October 2022, HVPE’s share of HVP fund-level borrowing, on a look-through basis, was $512 million.