Unbelievable Deal: Get £1 for only 60p with this FTSE 250 investment trust!

Harbourvest Global Private Equity is a private markets investment firm that has been relatively stable throughout 2024, with shares currently trading around £24.50 on the FTSE 250. What sets this firm apart is not only its impressive portfolio of businesses with high growth potential, but also the intriguing price at which its stock is trading.

Harbourvest’s Portfolio:
– Harbourvest offers a unique opportunity to invest in some truly captivating businesses. Among them is Shein, the online fashion retailer making waves globally and rumored to be considering a UK stock market listing in 2025.
– Another notable inclusion in its portfolio is Action, a European discount retailer that has seen remarkable growth and contributed to 3i’s impressive performance in the past decade.
– Other assets like Discord, Databricks, and Figma further add to the diversity and appeal of Harbourvest’s investments.

Buying at a Discount:
– Despite the compelling assets in its portfolio, shares in Harbourvest are currently trading below their estimated net asset value (NAV) of £40.50 per share, at around 60% of this figure.
– This discount presents an opportunity for investors, as it implies that every 60p invested buys assets with a net worth of £1. However, the persistence of this discount can leave investors waiting indefinitely to realize the true value of their holdings.
– While the gap between share price and NAV might eventually close, Harbourvest’s management seems more focused on leveraging debt for future acquisitions rather than pursuing share buybacks suggested by investment firm Metage Capital to unlock shareholder value.

One to Watch:
– The potential for significant gains if the underlying value of Harbourvest is unlocked through buybacks is enticing, but investors should proceed with caution given the uncertainty surrounding the company’s strategic direction.
– Investing in Harbourvest is akin to acquiring £1 for 60p, with the uncertainty lying in when investors will be able to access that extra 40p.
– Keeping a close eye on how the company navigates its shareholder pressure and strategic decisions will be crucial in determining the future success of this investment.