Boosted HarbourVest PE distribution pool offers potential 'material rerating' of shares

$150m-$250m over 2024-25

James Baxter-Derrington
clock • 2 min read

HarbourVest Global Private Equity’s (HVPE) newly refreshed distribution pool has been met with positivity by analysts, who have argued the move may lead to a “material rerating” of the trust’s shares.

According to the vehicle's annual results to 31 January 2024, the distribution pool is set to fall between $150m-$250m for the calendar years of 2024 and 2025, including a $75m seed. Taking the estimated midpoint and deducting the seed amount, Jefferies analysts Matthew Hose and Fiona Huang calculated the $62.5m annual allocation would produce distributions equal to 10% of the portfolio each year. HarbourVest Global Private Equity establishes distribution pool to manage future buybacks "This looks realistic in the context that annual distribution rates of greater than 20% have been...

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