Our multi-layered investment approach creates diversification, helping to spread risk, and is fundamental to our aim of creating a portfolio that no individual investor can replicate.
We believe that strategic diversification to create a well-balanced portfolio with global exposure to private company investments is critical for both maximising long-term returns and minimising downside risk.
This is a key consideration in the strategic objectives set by the HVPE Board, and in subsequent asset allocation and portfolio construction decisions taken by the HVPE investment team in consultation with HarbourVest through its dedicated HVPE Investment Committee.
HVPE allocates across different stages, strategies, and geographies within the private markets investment universe, in-line with its rolling five-year portfolio construction targets (what we call Strategic Asset Allocation). These targets reflect the Investment Manager’s and the Board’s perspective on the best means of optimising long-term NAV growth.
The below graph (as at 31 August 2022) shows how HVPE provides well-balanced global exposure to private markets investments.