Listed Private equity in the UK has been facing an image challenge, but this presents a unique opportunity for investors. Despite the robust performance of many private equity strategies, concerns over higher interest rates and valuations have led to listed private equity investment trusts trading at significant discounts to their underlying value. With the macroeconomic outlook improving, these discounts offer investors a golden chance to tap into the long-term returns generated by fast-growing private businesses. This is potentially a good time to consider investing in private equity, as the potential for substantial gains is considerable.
At HVPE, we are aware that investors may need some encouragement to revisit the sector. In 2024, we bought back $90m shares, boosting our net asset value per share and enhancing returns for our shareholders. In 2025, we are extending this programme by allocating up to $235m through the year to further buybacks and dividends, doubling our potential allocation to share buybacks on the previous year, demonstrating confidence in our published valuations and the outlook for the performance of the underlying assets.
We are also simplifying HVPE’s investment structure, with the aim of improving understanding of the trust and the listed private equity market more generally. The changes to the investment structure will give us greater flexibility in how we deploy capital while reducing overall leverage, and giving the trust wider appeal.
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The board also plans to introduce a Continuation Vote, which will be put to shareholders at HVPE’s Annual General Meeting in July 2026. Shareholders will be asked by simple majority vote whether they wish HVPE to continue. We are the first private equity fund of funds to offer this choice to our shareholders, giving them a say in the future of their investment. We believe is an exciting moment to re-examine the private equity sector. Buoyant merger and acquisition activity is driving valuations higher, while the IPO market shows signs of thawing. The private equity industry harbours dynamic companies in high-growth sectors such as AI, healthcare and business services. At HVPE, we believe the steps we’ve taken will allow investors to access the enormous opportunity that the listed private equity sector offers today.
Visit us at hvpe.com.
Your capital is at risk. Past performance cannot be relied on as a guide to future performance. This advert is for informational purposes only and is not investment advice. We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. The Key Investor Information Document is available from HarbourVest Advisors L.P. on request or at the website: hvpe.com
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