TRUST WATCH

Harbourvest Global Private Equity

WHAT DOES IT DO?

FTSE250-listed Harbourvest Global Private Equity (HVPE), worth £1.1bn, aims to grow investors’ cash over the long term. It gives normal savers access to unlisted companies, which usually only big-name private equity and venture capital firms can invest in.

WHAT DOES THE MANAGER INVEST IN?

Unlike most trusts, which invest in listed companies trading on a stock exchange, HVPE puts money into the funds managed by its parent, private equity firm Harbourvest Partners.

These funds in turn invest in private companies, or take stakes in whole portfolios of companies owned by other private equity houses. This gave HVPE access to businesses such as Uber, Facebook and Netflix before they listed.

WHAT DO THE EXPERTS SAY?

Myrto Charamis, an analyst at Liberum, notes that the HVPE’s underlying value has increased by 258pc since it was founded in 2007. In comparison, the FTSE All Share has provided a total return of 85pc.

She adds: ‘The portfolio gives part-ownership to more than 8,000 private companies from early venture to large-cap buyouts in the US, Europe and Asia.’

WHAT DO THEY LIKE?

Chamaris says the fund has a ‘robust, consistent performance track record’ and its shares are trading at an attractive discount to the value of the underlying investments.

ARE THERE ANY DOWNSIDES?

She warns the pricing of private companies has increased significantly in recent years. So she expects returns may be smaller since Harbourvest will make smaller profits when firms are sold. She adds that ‘private assets are complex in nature and can take longer to sell’ – so HVPE may not make investors a quick profit.