Richard Hickman Addresses Liquidity and NAV Discounts for HarbourVest Global Private Equity
Richard Hickman, managing director of HarbourVest Global Private Equity (HVPE), discussed liquidity and net asset value (NAV) to share price discounts in an interview with Private Equity Wire. The interview, part of the publication’s Alternative Views series, focused on HVPE, a listed private equity fund managed by HarbourVest Partners, amid ongoing debates about discounts for UK-listed funds. In February, activist hedge fund Saba Capital disclosed a 5% stake in HVPE, with the fund’s discount currently at 29.9%, according to Private Equity Wire.
Key Topics in the Discussion
Hickman covered liquidity during periods of market volatility at the 1:00 mark of the interview. He also addressed investor preferences for evergreens versus listed funds at 3:34 and the operational challenges of each for limited partners (LPs) at 5:05. Additionally, the conversation included the appeal of listed private equity funds compared to other public vehicles at 7:05 and why private equity has typically outperformed public markets at 8:45, according to Private Equity Wire.
Managing Discounts and Activist Criticism
Hickman discussed managing the NAV to share price discount at 10:54, whether such discounts are inevitable at 14:36, and criticism from activist shareholders at 15:49. These points highlight the ongoing scrutiny of listed funds like HVPE in the UK private equity sector. As widely known in private markets, activist investors often push for changes to narrow discounts, a context that frames Saba Capital’s involvement with HVPE.
Implications for Private Equity Debates
The interview underscores debates around listed private equity funds, with Hickman providing insights into liquidity and discounts as part of broader industry discussions. Topics like investor preferences and operational challenges for LPs reflect common themes in private equity, according to Private Equity Wire.
