Private equity round-up: Patria, HarbourVest, NBPE, and Pantheon International
Patria Private Equity (PPET)
Performance
The £1.3bn European mid-market private company investor reported a 10.6% increase in net asset value (NAV) in the year to end of September, and a 7% rise in share price, both of which underperformed the 16.2% increase in the FTSE All Share over the period. The discount widened from 31.4% to 34.4% in that time despite 2.7% of share capital being repurchased at a total cost of £22.7m.
The fund paid a dividend of 17.6p per share, up from 16.8p last year, putting it firmly in the Association of Investment Companies’ (AIC) ‘next generation dividend hero’ list.
Portfolio activity
There were realisations totalling £180.2m over the year, including £26.7m of secondary sales. Manager Alan Gauld made an average uplift on the carrying value of 11.9%, which was far short of the 25.6% average uplift achieved in 2024.
Gauld and his team made new commitments of £300m, with £193m invested into primary investments, and there is still a further £759m of outstanding commitments to go that is covered by the same amount in liquid assets, including £121.5m in cash and £172.6m in undrawn debt.
Outlook
Gauld said the result was the strongest year since 2022 on a NAV total return basis and marked 16 years of consecutive NAV growth.
‘I remain assured about the longer-term opportunities in the private equity mid-market, with literally thousands of founder or family-owned businesses providing an enormous opportunity set for private equity investors and resultant exposure to everyday investors through the company,’ he said.
What the chair says
Outgoing PPET chair Alan Devine, said the ‘private equity market did not recover in 2025 as I had anticipated’ given the US tariff uncertainty hampered an M&A pick-up.
‘As this is my last full year as chairman, I am proud that during my tenure the company’s share price has increased from 206p per share to 640p per share, and the NAV increased from 252.2p per share to 844.7p per share as at 30 November 2025, and the strategy has shifted to more direct and more mid-market,’ he said.
HarbourVest Global Private Equity (HVPE)
Performance
A cashflow update from the £3.3bn portfolio confirmed a ‘landmark year’ that it said was marked by ‘robust share price performance, continued NAV growth, and a significant narrowing of the discount to NAV at which the shares trade’, currently 27% from 37% at the end of 2024.
The shares rose 18% over the calendar year to £31.35, building on the 13% gain in 2024. The estimated NAV rose 11% to $58.13, which reflected the ‘strength and resilience’ of the globally diversified portfolio.
HVPE cashflow was positive by $46m over the year, receiving $424m in distributions and investing $378m in HarbourVest funds, versus negative cashflow in 2024.
Corporate action
Over the year, the discount was narrowed by the ‘decisive actions’ of the board and investment manager, which ‘delivered tangible results for shareholders, positioning HVPE as a clear leader among its listed private equity peers’ and included enhanced shareholder returns.
As part of its capital allocation strategy, the board doubled the distribution pool to 30%, repurchased $93m of shares, or 2.4% of NAV, and introduced a separately managed account (SMA) structure that gives flexibility over capital deployment. The distribution pool currently holds a balance of $85m as of the end of December.
A continuation vote will be held at the 2026 annual general meeting and the board is ‘welcoming feedback’ from shareholders ahead of the vote.
‘Positive commentary to date from shareholders and analysts provides confidence that the decisive actions taken over the past year will be recognised and supported by shareholders at the vote,’ said the board.
Portfolio activity
There was ‘notable’ portfolio activity in the year, with asset sales announced in December at a blended discount of 6% to NAV, which is expected to raise $300m in cash after expenses. Of this, $90m will be allocated to the distribution pool.
HVPE chair Ed Warner said the transaction demonstrated ‘the encouraging conditions in the secondary market’ and HVPE’s ‘ability to unlock significant value for shareholders through proactive portfolio management’.
There were 424 initial public offerings (IPOs) and M&A deals in the portfolio in 2025, a 7% increase on 2024. This included Wiz being acquired by Alphabet and a SpaceX tender offer.
What the chair says
Warner said that 2025 not only delivered strong returns for shareholders but laid ‘the foundations for future growth’.
‘The board remains resolutely focused on maximising value, as demonstrated by our enhanced buyback programme, the successful transition to a more flexible SMA structure, and our ongoing commitment to robust governance through the upcoming continuation vote,’ he said.
‘We remain vigilant and agile, ready to capitalise on opportunities as they arise, confident that our diversified portfolio and strategic initiatives will continue to drive strong performance and further narrow the discount to NAV.’
NB Private Equity (NBPE)
Performance
The £659m portfolio of private equity debt and equity managed by NB Private Equity Partners, reported a NAV decrease of 1% in December to £20.67 per share, although the shares fared better with a 3.1% increase.
While returns were underpinned by updated private company valuations, foreign exchange, and share buybacks totalling 516,000 shares in the month, any gains were offset by expenses.
The largest holding in the fund is Action, the European discount retailer which is majority owned by investment company peer 3i Group (III), and makes up 6.1% of the portfolio.
Portfolio activity
A total of $180m (£131m) of realisations were received in the month, with $22m of that total coming from previously announced realisations and partial sales of quoted holdings. The number of realisations in December were 57% higher than in 2024.
There was $23m deployed in 2025, with $40m committed to two new investments in December 2025 ($10m) and January 2026 ($30m). The management team said there was a ‘strong pipeline of investment opportunities, especially in mid-life co-investments and co-underwrite opportunities’.
The fund has $302m of total liquidity, including $92m in cash and the rest made up of undrawn credit.
Pantheon International (PIN)
Performance
The £2.4bn portfolio reported a 2% decline in its NAV to 510.6p in December, although flagged the 65% increase in NAV over five years.
Downward valuations shaved 0.9% from the NAV and FX impacted the NAV by 1.2%, while investment income added 0.3% and share buybacks were neutral.
Portfolio activity
The portfolio received distributions of £56m in December, relative to £18.7m of calls from existing commitments to private equity funds, meaning it generated net cash of £37.3m over the month.
New investments of £23.6m were made to Accel Leaders Fund V, a north American growth fund focused on technology and consumer sectors.
Corporate activity
The board has been taking advantage of the wide discounts the shares trade at – currently 26% - to buyback shares, and in December repurchased 550,00 shares for a total of £2.1m. Share buybacks totalled £44.9m in the seven months to end of 2025.
PIN has also established a distribution pool with an opening balance of £60m, and a further £46.4m has been allocated to it. The pool supports ‘PIN’s active capital management and allocation policies’.
