Judging by prevailing discounts to net assets, broad fund of fund investors in private equity are not a particularly favoured group within the investment company sector. However, a fund such as HarbourVest Global Private Equity (LONDON: HVPE) can be seen as having appealing attributes: in addition to a still wide discount, it is structured and managed to ensure diversification by vintage, stage, geography, strategy and industry.
The management team has substantial experience, a wide industry network and follows a consistent approach to investment, further mitigating the risks inherent in private equity investment. The NAV performance since inception compares well with the MSCI All World (NYSE:ACWV) and private equity indices.