HarbourVest Global Private Equity Ltd on Thursday said whilst the fund failed to replicate the gains of its benchmark, such performance was to be expected.
The Guernsey-incorporated investment fund is managed by HarbourVest Partners LLC and provides exposure to private companies globally.
In the year ended January 31, the fund increased net asset value per share by 4.0% to $50.47 from $48.52 the previous year.
The fund underperformed its benchmark, the FTSE All-World Total Return Index, which returned 15% over the same period.
‘HVPE’s relative underperformance is not surprising, and is consistent with private equity investments being inherently less volatile than listed markets, tending to outperform during public market downturns and lagging as markets start to recover,’ said Chair Ed Warner.
Over the financial year the fund invested $283 million, up from $56 million.
HarbourVest felt the impact of rising interest rates and fears of a global recession which caused investor confidence to falter throughout the year.
This was further exacerbated by the ongoing political tensions stemming from the conflicts in the Middle East and Ukraine, as well as the souring of US and China relations.
‘The investment case for HVPE remains compelling. The company has outperformed public equity markets over the past ten years, and we are optimistic that this will continue in the long term,’ Warner said.
Looking ahead, the fund manager expects private equity markets to improve, bolstered by modest declines in interest rates and inflationary pressures as part of a wider economic recovery
HarbourVest Global shares were up 0.9% to 2,345.66 pence each in London on Thursday morning.
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