HarbourVest Executive Addresses Liquidity and Discounts in PE Funds
Richard Hickman, managing director of HarbourVest Global Private Equity (HVPE), discussed liquidity during periods of market volatility and net asset value (NAV) to share price discounts in an interview with Private Equity Wire. The conversation highlighted that listed funds in the UK, including HVPE, remain at the center of debates over these discounts, with activist hedge fund Saba Capital disclosing a 5% stake in HVPE in February and the fund’s discount currently at 29.9%.
Overview of the Interview
In the interview, Hickman covered topics such as investor preferences for evergreens versus listed funds, as noted at the 3:34 mark, and the operational challenges of each for limited partners (LPs), discussed at 5:05. He also addressed the appeal of listed private equity funds compared to other public vehicles at 7:05 and why private equity has typically outperformed public markets, as explained at 8:45. According to Private Equity Wire, these points provide insight into the dynamics of private markets.
Managing Discounts and Activist Criticism
Hickman specifically talked about 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. This discussion occurs in the context of HVPE being a listed private equity fund managed by HarbourVest Partners, which faces ongoing scrutiny over its discount levels. As widely known in financial markets, activist investors like Saba Capital often push for changes to narrow such discounts, though this interview focuses on Hickman’s perspectives.
Key Topics on Liquidity and Performance
The interview also delved into liquidity challenges during market volatility at 1:00, emphasizing the differences between various fund structures. According to Private Equity Wire, Hickman’s insights highlight the operational aspects for LPs and the broader appeal of private equity vehicles.
