HarbourVest Global Private Equity notes interim headwinds, AI boost

HarbourVest Global Private Equity Ltd on Thursday said that conditions for private equity remained challenging in its first financial half, while noting some companies in its portfolio performed "exceptionally" well, in particular in the artificial intelligence sector.

The Guernsey-based investment fund said net asset value per share rose 2.4% to USD60.82 as at July 31, from USD59.40 at January 31, which it said was driven by a 4.3% underlying portfolio valuation gain.

The firm highlighted that SpaceX's USD86 billion initial public offering in June made it HarbourVest's third largest underlying company. Further, it noted that portfolio firms Anthropic PBC and Databricks are reported to be mulling IPOs.

The company noted that the FTSE All World index had a dollar total return of 8.3% in the half-year. It said: "We consider that this underperformance relative to global equity markets is a function of the short-term performance lag between public and private markets and the reduced level of private market exit activity, rather than being an indication of the true long-term growth prospects of the portfolio."

The firm added: "Public markets tend to be more volatile than private markets, especially during periods of uncertainty, and therefore we believe short-term comparisons are less meaningful. Longer-term evaluations through the cycle are more reflective of HVPE's performance and strategy."

HarbourVest said that since it began share buybacks in September 2022, it has bought back USD362 million of shares.

Chair Ed Warner said: "Conditions for private equity remained challenging in the first half of 2026, as a combination of macroeconomic and geopolitical headwinds continued to weigh on the market. While many private equity firms found exits challenging, resulting in lower-than-expected cash returns to investors, several of our individual portfolio companies performed exceptionally well, particularly in the AI sector. These successes provide grounds for optimism and reinforce our confidence in the long-term outlook for private equity."

HarbourVest shares were 1.2% lower at 3,285.00 pence each on Thursday afternoon in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.