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AVI Global Trust’s investment manager, Asset Value Investor, has urged HarbourVest Global Private Equity Ltd to prioritise shareholder returns and consider running a formal sales process, warning it may vote against the trust’s continuation. In an open letter published on Friday and addressed to the board, manager and shareholders of HarbourVest Global Private Equity, Asset Value Investors said it manages a 3.3% stake in the London-based private equity fund on behalf of institutional clients, making it a top-ten shareholder with an investment worth around £75 million. The firm said it welcomed steps taken over the past year, including the introduction of a continuation vote scheduled for July 2026, and an increase in the buyback distribution pool. However, it said these measures do not go far enough. ‘We are firmly of the view that further significant initiatives are necessary and should be explored well ahead of a potentially failed continuation vote,’ Asset Value Investors said. The manager criticised HarbourVest Global Private Equity’s net asset value performance, describing it as ‘disappointing’. It said this weak track record helps explain why the shares trade at what it called a ‘deep and persistent discount to NAV’, currently estimated at around 28%. Asset Value Investors argued that, at such a wide discount, buying back shares or returning capital at net asset value offers a significantly higher return than making new investments. It said a 5% share buyback at the current discount would generate an immediate and ‘risk-free’ return of more than 40% within the company. Despite this, it said capital returns have been too limited. Only around 3.6% of shares have been repurchased over the past year, which Asset Value Investors attributed to what it described as a stretched balance sheet, unreliable cashflow forecasts and insufficient asset sales. The firm also raised concerns about the company’s gearing and forecasting accuracy. To address these issues, Asset Value Investors outlined two strategic alternatives. The first would be to formally prioritise capital returns to shareholders over new investments, and the second option would be to run a formal sales process for the company or its portfolio. ‘To ensure shareholders are armed with sufficient information ahead of casting their votes for or against continuation, we believe the board should set out and evidence its expected returns for shareholders from the status quo; from a managed run-off; and from a sale of the company or its portfolio,’ the firm said. AVI Global Trust PLC, which is managed by Asset Value Investors and is itself a shareholder in HarbourVest Global Private Equity, said it fully supports the points raised in the letter. Migo Opportunities Trust PLC, also managed by Asset Value Investors, likewise expressed its backing. AVI Global shares were down 0.6% at 263.52 pence in London on Friday morning. HarbourVest shares were down 0.1% at 3,177.77. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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