HarbourVest Global Private Equity Ltd.
Capital Markets Session 15 June 2016 HarbourVest CONFIDENTIAL 1 Agenda
Chairman’s Introduction
HVPE Factsheet & Overview
HVPE Performance vs. Peers
Financial Performance & Portfolio Highlights
Managers and Investments
Key Take-Aways HarbourVest CONFIDENTIAL 2 Chairman’s Introduction
The history of HarbourVest Global Private Equity
Manager award
The management team
The Board
The year to 31 January 2016 in review
Balance sheet and commitments
HVPE NET ASSET VALUE GROWTH ($ millions except per share data) (▲6%) 1400 $1,266 (▲10%) $1,337 1200 $1,167 (▲15%) $1,030 (▲9%) 1000 $944 (▲12%) 800 $16.75 $15.86 NAV per Share 600 $12.46 $14.38 NAV per Share 400 $11.42 NAV per Share NAV per Share 200 NAV per Share 0 2012 2013 2014 2015 2016 HarbourVest CONFIDENTIAL 3 HVPE Factsheet
HVPE is a Guernsey domiciled investment company, first listed in December 2007
Investment strategy has remained focused since launch
HVPE is now the fourth largest listed PE investment company in London
NAV performance over all time periods since inception has been very strong
Key data points 30 April 2016 / Current*
NAV $1,358 million Market capitalisation $1,072 million NAV/share USD (GBP) $17.01 (£11.82) Share price USD (GBP) $13.42 (£9.32)* Discount to NAV 21.1% NAV growth, 5 years USD (GBP) 62% (82%) Share price growth, 5 years USD (GBP) 94% (120%) Total shares in issue 79.9 million Shares traded, year to 3rd Nov 2015 9.9 million (avg. 39,000 / day) Shares traded, 4th Nov to 3rd June 2016 18.3 million (avg. 125,000 / day)
* Share price data as of market close, 3rd June 2016. GBP/USD 1.440 HarbourVest CONFIDENTIAL 4 HVPE Overview
HVPE is designed to provide access to a range of private market investments
Invests in and alongside HarbourVest funds
HarbourVest funds in turn make investments into private market funds and operating companies
HVPE
34 HarbourVest Funds + 2 Co-Investments Primary Secondary Direct 49% 36% 15% 764 Funds / Partnerships Buyout VC & Growth 66% 34%
6,923 Operating Companies Industrial / Medical / Consumer / Financial Technology / Telecom Other Biotech 35% 31% 18% 16% HarbourVest CONFIDENTIAL 5 Top 10 HarbourVest Funds
. HVPE is offered a minimum 5% investment into all new HarbourVest funds . Commitment amounts are fine-tuned with respect to a series of portfolio construction targets . HVPE’s top 10 HarbourVest fund holdings are shown below
Fund Proportion of HVPE Fund Proportion of HVPE NAV NAV Fund VIII Buyout 11.0% Fund IX Venture 4.4%
Dover VIII 8.7% 2007 Direct 4.4%
Fund VII Partnership 7.5% Conversus 4.2%
HIPEP VI Partnership 6.8% HIPEP VI Asia Pacific 3.2%
2013 Direct 4.7% Fund VIII Venture 3.2%
Data as of 31 Jan 2016 HarbourVest CONFIDENTIAL 6 HVPE Portfolio Construction Targets
HVPE commitments are made with reference to a set of agreed five-year targets
Other external/macro factors will influence portfolio composition over time
INVESTMENT PORTFOLIO CONSTRUCTION TARGETS
By Stage By Geography By Strategy
. 70% Buyout . 60% US . 60% Primary . 30% Venture and Growth Equity . 25% Europe . 25% Secondary . 10% Asia Pacific . 15% Direct . 5% Rest of World HarbourVest CONFIDENTIAL 7 Diversification at 30 April 2016
The current breakdown by stage, geography and strategy is shown below
New commitments to Europe are expected to move this allocation closer to the target level over time
INVESTMENT PORTFOLIO DIVERSIFICATION
By Stage By Geography By Strategy
. 62% Buyout . 62% US . 49% Primary . 34% Venture and Growth Equity . 21% Europe . 34% Secondary . 4% Other . 11% Asia Pacific . 17% Direct . 6% Rest of World HarbourVest CONFIDENTIAL 8 HVPE Performance
HVPE vs. Public Markets
Share Price Discount to NAV
Share Price Performance – Short-term
Shareholder Register
HarbourVest CONFIDENTIAL 9 NAV Total Return
HVPE total NAV return including the total distributions of $0.49 per share is now 70.1% since inception, representing annual growth of 6.5% vs. 2.5%* for the MSCI ACWI on a total return basis
$20.00
$18.00 HVPE NAV $17.01 $15.86 $16.00 MSCI ACWI TR $14.38 HVPE Share Price $14.00 $13.81 $12.45 $12.00 $11.42 $10.39 $10.24 $10.00 $8.65 Cumulative Return $7.61 $8.00 (6 Dec 07 – 30 Apr 16) HVPE NAV 70.1% $6.00 HVPE Share Price 38.2% $4.00 MSCI ACWI TR 22.7% $2.00
Total Return Jan Jan Jan Jan Jan Jan Jan Jan Jan 2008 2009 2010 2011 2012 2013 2014 2015 2016 HVPE NAV $10.39 $7.61 $8.65 $10.24 $11.42 $12.46 $14.38 $15.86 $16.75 3.9% (26.8%) 13.7% 18.4% 11.5% 9.1% 15.4% 10.3% 5.6% MSCI ACWI 571.4 332.7 465.1 554.7 538.2 621.5 704.0 755.8 708.3 (8.7%) (41.8%) 39.8% 19.3% (3.0%) 15.5% 13.3% 7.4% (6.3%)
*Compound annual growth rate calculated through 30 April 2016. Note: past performance is not an indication of future results HarbourVest CONFIDENTIAL 10 Share Price Discount to NAV
HVPE’s discount to NAV has narrowed in recent years
Main Market listing has improved marketability of the shares
Trading range among HVPE’s peer group is very wide
Current Share Price Discount to NAV
3i 14.1% Electra -12.6% F&C Private Equity Trust -14.7% HarbourVest Private Equity -21.1% SVG Capital -22.1% UK FOFS Weighted Average -24.2% JP Morgan Private Equity -25.0% Pantheon International -25.6% NB Private Equity Partners -26.8% Standard Life Euro Private Eq -27.4% ICG (Graphite) -27.9% Aberdeen Private Equity -33.8% Altamir -39.6% -50% -40% -30% -20% -10% 0% 10% 20%
Source: J.P. Morgan Cazenove Investment Companies Daily Interactive Stats sheet as of 6 June 2016. HarbourVest CONFIDENTIAL 11 Share Price Performance – Sep 2015 Onwards
HVPE’s share price has performed well since the Main Market listing
Volatility has been significantly lower than that seen in the broader sector
130
125
120
115 Electra 110 SVG
105 HVPE Pantheon 100 NBPE
95 3i
90
85
80 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16
Source: Bloomberg data, 3rd June 2016 Note: past performance is not an indication of future results HarbourVest CONFIDENTIAL 12 Shareholder Register
. US ownership has fallen from 48% in September to 42% today . Recent buyers include the UK arm of the Prudential (+6%), index funds (+6%), retail investors (+0.5%) and private wealth managers (+0.4%)
September 2015 April 2016
Other Other 8% 9%
US US 42% 48% UK 44% UK 49% HarbourVest CONFIDENTIAL 13 Financial Performance & Portfolio Highlights
Investments and Commitments
NAV Performance
Realisations
Uplift on Carrying Values
Expenses
Portfolio Growth
HarbourVest CONFIDENTIAL 14 Investments and Commitments to 31 January 2016
Activity during the period (in millions except % data)
Year Ended Year Ended Financial Summary 31 January 2016 31 January 2015
Commitments to HarbourVest funds $526.4 $350.5
Total Investment Pipeline $1,043.0 $734.1
Cash Invested in HarbourVest funds $211.0 $162.2
% of Investment Pipeline* 16.7% 12.8%
. Since 31 January 2016, HVPE has made commitments of a further $200m
* % of Investment Pipeline at prior financial year-end, adjusted for commitments made during the year HarbourVest CONFIDENTIAL 15 Total Unfunded Commitments at 31 January 2016
. Of the total $1,043m in unfunded commitments, $423m (41%) is unallocated . The rolling coverage ratio rose from 72% to 104% during the period as the net cash position continued to improve and the credit facility was increased from $300m to $500m
Investment Pipeline Rolling Coverage Ratio (31 January 2016) At 31 January 2016 Cash + Available Credit Facility $704m
Current Year Projected Realisations $286m Allocated Unallocated A: Total Liquid Resources $990m $620 $423 B: Next Three Years’ Estimated Investments $948m
Rolling Coverage Ratio = A/B = 104%
1-3 yrs 4-6 yrs 7-10 yrs >10 yrs $316 $197 $60 $47 HarbourVest CONFIDENTIAL 16 NAV Performance to 31 January 2016
NAV increased in the period by 5.6%, from $15.86 to $16.75, vs. a decrease of 6.3% for the MSCI ACWI on a total return basis
The increase was driven by profitable realisations
By value, 67% of a large sample of underlying companies* grew EBITDA in the twelve months ending 31 January 2016 – Of these, 3/5 were growing at a rate greater than 10% per annum
The weighted average EBITDA multiple in the sampled portfolio is 9.9x (from 9.4x in the prior year)
The average debt multiple is 4.2x (3.9x)
CHANGES IN NAV PER SHARE $18 $1.43 $17 $16.75 $15.86 $16 ($0.26) ($0.12) ($0.16) $15 $14 $13 $12 NAV per Share Realised Gain / Management and Operating Foreign NAV per Share at 31 Jan 2015 Value Change Performance Fees Expenses Currency at 31 Jan 2016
*These portfolio metrics reflect an analysis of 1,696 buyout companies in developing and investing U.S. and international HarbourVest funds where data is available. This represented 39% of the total buyout NAV at 31 January 2016. Please note that the sample is larger than that taken in the prior year, hence figures will not tie back to last year’s Annual Report. HarbourVest CONFIDENTIAL 17 Profile of Realisations to 31 January 2016
HVPE’s mature portfolio continues to generate cash from realisations
The average age of the underlying companies is 6.3 years
The 2005-8 vintages are generating the strongest realisation flow, but there is an increasingly significant contribution from the 2010 and 2011 vintages
INVESTMENT PORTFOLIO REALISATIONS BY VINTAGE YEAR ($ millions) Realised During Twelve Months Ended 31 January 2016
20%
0%
Note: past performance is not an indication of future results HarbourVest CONFIDENTIAL 18 Uplift on Carrying Value at Realisation to 31 January 2016
The weighted average uplift achieved at realisation was 38% in the year ended 31 January 2016
Realisations from the Buyout portfolio were particularly strong, with an average multiple on cost of 4.0x
Weighted Average Multiple on the Cost of Investment Weighted Average Uplift % on the Carrying Value* 8x 80%
6x 60%
4.1x 3.9x 4.0x 38% 40% 40% 4x 3.5x 40% 3.1x 31% 28%
2x 20%
0x 0% Total Venture Buyout M&A IPO Total Venture Buyout M&A IPO
* Uplift represents weighted average return for the 173 largest M&A and IPO transactions which represent approximately 83% of the value of the known transactions during the financial year. This analysis represents a subset of the transactions and does not represent the portfolio as a whole. Additionally, this analysis does not reflect management fees, carried interests, and other expenses of the HarbourVest funds or the underlying managers, which will reduce returns. Past performance is not a guarantee of future success. HarbourVest CONFIDENTIAL 19 Total Expenses to 31 January 2016
HVPE incurred direct operating expenses of $11.2m in the year ending 31 January 2016, up from $10.0m in the previous year
The increase was driven by one-off costs, incurred as part of the Main Market listing, of $1.7m
Total expenses fell from 2.7% of NAV in 2015 to 2.3% in 2016
$40.0 Carried Interest $35.0 $33.0m $30.2m Management Fees $30.0 (HarbourVest) $25.0 Management Fees (Co- investments) $20.0 Other Expenses
$15.0 Directors' Fees and Expenses $10.0 Professional Fees $5.0 $10.0m $11.2m Investment Services $0.0 Year Ended 31 Jan Year Ended 31 Jan Credit facility 2015 2016 HarbourVest CONFIDENTIAL 20 Portfolio Growth to 31 January 2016
Value growth in the portfolio is analysed on a regular basis in order to verify the asset allocation strategy
During the year, value growth was particularly strong across buyout and growth equity investments. By geography, Europe saw the strongest growth rate
Growth in Asia Pacific, having slowed at the half-year, staged a recovery in H2
INVESTMENT PORTFOLIO GROWTH Gain Over 31 January 2015 Value By Stage By Strategy By Geography 15% 15% 15% 15%
10% 11% 10% 10% 9% 9% 8% 10% 7% 6% 5% 5% 3% 3% 5% -1% 0% 0% 0% Buyout Growth Early Other Europe Asia U.S. RoW Primary Secondary Direct Equity Venture Pacific -5%
Note: past performance is not an indication of future results HarbourVest CONFIDENTIAL 21 Managers and Investments
Top 10 managers
Top 10 portfolio companies
Notable exits
Key Take-Aways
HarbourVest CONFIDENTIAL 22 Top 10 Managers by Share of HVPE NAV at 31 January 2016
. No single manager represents more than 2.0% of the portfolio
. Portfolio includes household names as well as more specialised groups
Manager Region Stage % of Investment Value
WCAS US Buyout and Mezzanine 1.93%
The Blackstone Group US Buyout 1.72%
Thoma Bravo US Buyout, Venture and Growth 1.61%
Compass Partners International Europe Buyout 1.50%
Kohlberg Kravis Roberts US Buyout 1.47%
Health Evolution Investments US Venture and Growth Equity 1.40%
DCM US/Asia Pacific Venture and Growth Equity 1.37%
Index Ventures Europe Venture and Growth Equity 1.36%
PAI Partners Europe Buyout 1.28%
Hellman & Friedman US Buyout 1.14% HarbourVest CONFIDENTIAL 23 Top 10 Companies by Share of HVPE NAV at 31 January 2016
. No single company represents more than 1.6% of the portfolio
. As of 31 January, the top 10 companies shown below represented 8.5% of the portfolio value, while the top 100 companies represented 32.2%
Top 10 companies Country Description % of Investment Value
Lightower Fiber Networks US Broadband networks 1.58%
Wayfair US Online home goods retailer 1.31%
Capsugel US Drug delivery systems 0.93%
Earth Networks US Weather observation 0.83%
The Sun Products US Household products 0.77%
Riverbed Technology US Network management 0.74%
Zayo Group US Telecommunications 0.67%
Censeo Health US Home health care services 0.58%
Securus Technologies US Public safety technology 0.57%
Uber Technologies US Personal transportation 0.53% HarbourVest CONFIDENTIAL 24 Notable exits
. Below is a selection of particularly interesting companies sold from within the HVPE portfolio in recent years
. With more than 6,900 underlying company investments, HVPE typically sees 30-50 liquidity events per month
Company Date Country Stage Exit route
Facebook May 2012 US Venture NASDAQ
Twitter Nov 2013 US Venture NYSE
GoPro Jun 2014 US Venture NASDAQ
The Trainline Jan 2015 UK Buyout M&A (KKR)
Auto Trader Mar 2015 UK Buyout LSE
Glaukos Jun 2015 US Venture NASDAQ
Worldpay Oct 2015 UK Buyout LSE
PhotoBox Oct 2015 UK Venture M&A (Exponent & Electra Partners)
China Hydroelectric Corporation Dec 2015 China Venture M&A (Shenzhen Energy)
Quotient Clinical Dec 2015 US Venture M&A (GHO)
Note: As of 31 May, HVPE retains a holding (directly or via an underlying manager) in a number of the public companies listed above. Company names shown for illustrative purposes. HarbourVest CONFIDENTIAL 25 Key Take-Aways
Focused, consistent strategy: PE fund of funds
Integrated, complementary approach: primary, secondary, and direct co-investment
The most diversified portfolio in the market
Provides access to pre-IPO US Venture
Run by a high quality manager
Now a FTSE 250 company
Currently trading at a discount to NAV whilst realising assets at a near-40% premium
GLOBAL MARKETS REVIEW
Peter Wilson 15 June 2016 HarbourVest CONFIDENTIAL 27 Investing in an age of uncertainty
Global private equity market 2015/16
Reflections on the current macro environment
Outlook HarbourVest CONFIDENTIAL 28 Investing in an age of uncertainty
Global private equity market 2015/16 – Liquidity – Fundraising – Investing
Reflections on the current macro environment
Outlook
HarbourVest CONFIDENTIAL 29 Equity valuations have provided ideal conditions for selling MSCI World and S&P 500 EV / EBITDA Multiples
14.0x
12.0x
10.0x 10 yr average
8.0x
6.0x
4.0x Jan ’06 Jan ’07 Jan ’08 Jan ’09 Jan ’10 Jan ’11 Jan ’12 Jan ’13 Jan ’14 Jan ’15 Jan ’16 MSCI World S&P 500 10 Yr Average
Source: Bloomberg HarbourVest CONFIDENTIAL 30 Private equity exits at near-record highs
Global private equity-backed exits by region Global private equity-backed exits by type ’11-’15 cycle (+5.1% $400 CAGR) 100%
80%
$300
60%
$200
$ Billions $ 40% % of Total Exit Exit Value Total of %
$100 20%
$0 0% ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 Q1 Q1 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 '15 '16 U.S. Europe Asia EM M&A IPO
Source: Thomson Reuters, Incisive Media, MergerMarket, and HarbourVest analysis of Asia from AVCJ, APER, EMPEA, and GP reporting HarbourVest CONFIDENTIAL 31 Distributions fuelled another strong year of fundraising
Private equity funds raised by region ’11-’15 cycle (+9.2% CAGR) $205B $232B 400 600 100% 2% 3% EM 8% 16% Asia
80% 300 450 29% Europe 23% Buyout
60% U.S. 15% 12% 200 300 Venture
$ Billions $ 40%
U.S. 100 150 46% 46% 20% Buyout
0 0 0% ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 Q1 Q1 ’05 ’15 '15 '16 U.S. Buyout U.S. Venture Europe Buyout Asia EM # Funds Raised
Source: Thomson Reuters, Incisive Media, and HarbourVest analysis of Asia from AVCJ, APER, EMPEA, and GP reporting HarbourVest CONFIDENTIAL 32 General Partners raised funds quicker and more successfully Global buyout fundraising success and timing
100% 25 94% 91%
80% 79% 80% 76% 77% 20 70% 70%
60% 58% 15
48% 49%
40% 10
20% 5
0% 0 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 Q1 '16 % of funds that met or exceeded targets (LHS) Average months to final close (RHS)
Source: Preqin HarbourVest CONFIDENTIAL 33 Modest deal activity in elevated pricing environment
Global private equity investment activity Entry EV/EBITDA pricing for buyout deals Add Q1 data to 1,000 ’11-’15 cycle 11.0x (+4.8% notes CAGR) 900 10.0x 800
700
9.0x
600
500 EBITDA 8.0x
$ Billions $
400 xLTM 7.0x 300
200 6.0x 100
0 5.0x ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 Q1 Q1 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 Q1 '15 '16 ’16 U.S. Buyout U.S. Venture Europe Buyout Asia EM Europe U.S. Asia
Source: Thomson Reuters, MergerMarket
HarbourVest CONFIDENTIAL 34 GPs continuing to prioritize selling over buying
Global private equity activity by quarter
6 months to Q1 ’15 6 months to Q1 ’16 Deals - $88B Deals - $73B (-18%) Exits - $186B Exits - $114B (-39%) 120 110 104 100 86 82 85 77 79
80 68 62 61 63 60 $ Billions $ 50 46 42 39 40 36 35 32
20
0 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Deals Exits
Source: MergerMarket, Thomson Reuters as of 6 April 2015 HarbourVest CONFIDENTIAL 35 Investing in an age of uncertainty
Global private equity market 2015/16
Reflections on the current macro environment
Outlook HarbourVest CONFIDENTIAL 36 A growing probability of a downturn in the next investing cycle? Length of U.S. expansion and recession periods
150 What did we say in 120 ‘13/’14/’15 – “room 106 to run” etc. 100 92 80 82 73
58 50 50 45 37 39 36 Months 27 21 24 12
0 -8 -8 -6 -8 -8 -13 -13 -11 -10 -10 -11 -16 -16 -18
-50 -43
’49 ’58 ’70 ’27 ’29 ’33 ’37 ’38 ’45 ’45 ’48 ’53 ’54 ’57 ’60 ’61 ’69 ’73 ’75 ’80 ’80 ’81 ’82 ’90 ’91 ’01 ’01 ’07 ’09
-
------
Q1’16
’48 ’57 ’69 ’26 ’27 ’29 ’33 ’37 ’38 ’45 ’45 ’49 ’53 ’54 ’58 ’60 ’61 ’70 ’73 ’74 ’80 ’80 ’81 ’82 ’90 ’91 ’01 ’01 ’08
-
’09 1924 - 1926 -1924
Source: World Bank HarbourVest CONFIDENTIAL 37
Have sent to Complex and divergent outcomes create Sally to check challenging investment backdrop China comments Emerging China Oil Markets
“Soft” landing “Lower for longer” Sustained recovery > Growing tertiary sectors > Consumer tailwind > Strengthening growth > Effective SOE reform > Oil producers suffer > Employment increase
“Hard” landing Price recovery “Doldrums” > Liquidity drain > Deflation relief > Currency depreciation > Stagflation > E&P spending resumes > Sub-trend growth
U.S. Fed Geopolitics EU
Tighten Upside Case > Recession risk > Sustained lower Euro > Global capital flows Risks > “Brexit” – remain > U.S. election > ISIS / global terror Sustained low rates Downside Case > Military build-up > Asset bubbles > Migration crisis > Isolationism > Rising inflation > “Brexit” – leave HarbourVest CONFIDENTIAL 38 Decelerating global growth outlook
Annual IMF forecasts for 2016 Real GDP Growth 10%
8.5%
8% 7.0% 6.5% 6.3% 6.1% 6% 5.4% 4.7% 4.5% 3.9% 4.1% 3.8% 4% 3.4% 3.0% 3.1% 3.2% 2.4%
2%
1.6% 1.5% 1.6% 1.5%
0% As of: Apr ’13 Apr ’14 Apr ’15 Apr ’16
China EM World United States Euro area
Source: IMF World Economic Outlook HarbourVest CONFIDENTIAL 39 Investing in an age of uncertainty
Global private equity market 2015/16
Reflections on the current macro environment
Outlook
HarbourVest CONFIDENTIAL 40 The importance of being invested
Pooled returns by global asset class* Private equity Impact of market timing** Other alternatives 20 year returns 10 year returns Public markets 1.92x 1.9x +5% Private Equity 12.9% Private Equity 11.5%
Real Estate 7.2% Hedge Funds 7.8% 1.83x
Infrastructure 5.5% Infrastructure 6.4% 1.8x
Hedge Funds N/A – no data Real Estate 5.3% -10%
MSCI World 6.0% MSCI World 4.7% 1.7x 5 year returns 3 year returns 1.66x
Private Equity Private Equity 12.7% 12.4% 1.6x Real Estate 12.4% Real Estate 13.6%
Infrastructure 7.6% Infrastructure 7.5%
Hedge Funds 4.7% Hedge Funds 4.2% 1.5x Exclude All Exclude Worst Vintages Best MSCI World MSCI World 8.3% 8.6% Three Three Vintages Vintages
* Source: Cambridge Associates as of September 30, 2015 and Preqin as of February 2016 (for Global Hedge Funds only) ** HarbourVest global primary portfolio returns as of September 30 2015. Gross returns from 1992 to 2011 assuming even commitments every year. Exclusion of worst three vintages refers to ’98, ‘99, ‘00; exclusion of best three vintages refers to ‘93, ’94, ’96. Past performance is no guarantee of future returns. HarbourVest CONFIDENTIAL 41 Looking ahead
Evolving asset allocation – Asia increasingly core – Sustained allocation to U.S. / Europe – Co-investment: enhance returns, lower cost
Enhancing manager search – Larger manager pool, increasingly complex succession dynamics – “Established leaders”: relationships, incumbency advantage, speed – “Emerging winners”: coverage, experience-based risk analytics
“Fire-proofing” your portfolio – Greater reach into small / mid-market – Focused strategies – sector, operational & consolidation – Non-cyclical growth niches
HarbourVest CONFIDENTIAL 42 Disclaimer
STRICTLY CONFIDENTIAL
This document and this presentation have been prepared and issued by HarbourVest Global Private Equity Limited (the “Company”) for information purposes only and may not be used in making any investment decision.
None of the Company, its investment manager, HarbourVest Advisers, L.P. (the “Investment Manager”) or HarbourVest Partners, LLC (“HarbourVest”) has independently verified the information contained in this document and this presentation. This document and this presentation contain only summary information and no representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information contained herein and no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Company, HarbourVest, the Investment Manager or any of their respective affiliates or by any of their respective officers, employees or agents in relation to it. Each of the Company, HarbourVest, the Investment Manager and their respective affiliates and officers, employees or agents expressly disclaims any and all liability which may be based on the document and any errors therein or omissions therefrom. In particular, no representation or warranty is given as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. Any views contained herein are based on financial, economic, market and other conditions prevailing as of the date of this document and this presentation. The information contained in this document and this presentation will not be updated. Further information on the Company, its Investment Manager and HarbourVest can be found in the prospectus published on 2 November 2007, in connection with the listing of the Company’s A ordinary shares on Euronext Amsterdam by NYSE Euronext (available at no cost from www.euronext.com), and on the Company’s website at www.hvgpe.com and HarbourVest’s website at www.harbourvest.com, including in announcements available on those sites.
This document and this presentation do not constitute any form of financial opinion or recommendation on the part of the Company, HarbourVest or the Investment Manager or any of their respective affiliates and are not intended to be an offer, or the solicitation of any offer, to buy or sell any securities in any jurisdiction.
This document and this presentation contain track record data in relation to the performance of funds of funds managed by HarbourVest and its affiliates. When considering such track record data, investors should bear in mind that past performance is not necessarily indicative of future results and, as a result, the Company’s actual returns may be greater or less than the amounts shown herein. Investment returns will depend on the increase or decrease in the trading price of the Company’s shares. In addition the Company is a closed-end investment company and the performance data presented herein for HarbourVest, as well as the private equity index performance data, relates principally to funds structured as self-liquidating partnerships and in which investor contributions were made only when the underlying fund made an actual investment.
Neither this document, nor this presentation, nor any copy of either may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in the United States of America, its territories or to any US person (as defined in Rule 902 of Regulation S under the US Securities Act of 1933 (the “Securities Act”)). The distribution of this document and this presentation in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.
This document and this presentation are being distributed in the United Kingdom only to (a) persons who have professional experience in matters relating to investments who fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (b) high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(2) (a) to (d) of the Order (all such persons together being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Any investment or investment activity to which the presentation and these slides relate is available only to relevant persons and will be engaged in only with relevant persons.
The Company has been registered with the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten) as a collective investment institution which may offer participations in the Netherlands pursuant to article 2:66 of the Dutch Financial Markets Supervision Act.
By participating in this presentation or by accepting any copy of this document, you agree to be bound by the foregoing limitations. HarbourVest CONFIDENTIAL 43 Disclaimer ctd.
STRICTLY CONFIDENTIAL
The distribution of interests in HarbourVest Global Private Equity Limited (the “Fund”), a closed-ended investment company organised under the law of Guernsey, in Switzerland will be exclusively made to, and directed at, qualified investors (the "Qualified Investors"), as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended ("CISA") and its implementing ordinance. Accordingly, the Fund has not been and will not be registered with the Swiss Financial Market Supervisory Authority (FINMA). The representative of the Fund in Switzerland is Hugo Fund Services SA, 6 Cours de Rive, 1204 Geneva. The Paying Agent in Switzerland is Banque Cantonale de Genève, 17 Quai de l'Ile, CH-1211 Geneva 2, Switzerland. The place of performance for Interests of the Fund offered or distributed in or from Switzerland is the registered office of the Representative. Copies of the Prospectus, Articles of Association and annual and semi-annual reports of the Fund can be obtained free of charge from the Representative. HarbourVest CONFIDENTIAL 44 Forward-Looking Statements
This document contains certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, forward-looking statements can be indentified by terms such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘should,’’ ‘‘will,’’ and ‘‘would,’’ or the negative of those terms or other comparable terminology. The forward-looking statements are based on the Investment Manager’s beliefs, assumptions, and expectations of future performance and market developments, taking into account all information currently available. These beliefs, assumptions, and expectations can change as a result of many possible events or factors, not all of which are known or are within the Investment Manager’s control. If a change occurs, the Company’s business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Some of the factors that could cause actual results to vary from those expressed in forward-looking statements, include, but are not limited to: the factors described in this report; the rate at which HVPE deploys its capital in investments and achieves expected rates of return; HarbourVest’s ability to execute its investment strategy, including through the identification of a sufficient number of appropriate investments; the ability of third-party managers of funds in which the HarbourVest funds are invested and of funds in which the Company may invest through parallel investments to execute their own strategies and achieve intended returns; the continuation of the Investment Manager as manager of the Company’s investments, the continued affiliation with HarbourVest of its key investment professionals and the continued willingness of HarbourVest to sponsor the formation of and capital raising by, and to manage, new private equity funds; HVPE’s financial condition and liquidity, including its ability to access or obtain new sources of financing at attractive rates in order to fund short term liquidity needs in accordance with the investment strategy and commitment policy; changes in the values of or returns on investments that the Company makes; changes in financial markets, interest rates or industry, general economic or political conditions; and the general volatility of the capital markets and the market price of HVPE’s shares. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events, and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Any forward-looking statements are only made as at the date of this document, and the Investment Manager neither intends nor assumes any obligation to update forward-looking statements set forth in this document whether as a result of new information, future events, or otherwise, except as required by law or other applicable regulation. In light of these risks, uncertainties, and assumptions, the events described by any such forward-looking statements might not occur. HarbourVest qualifies any and all of its forward-looking statements by these cautionary factors. Please keep this cautionary note in mind while reading this report.
REGISTERED OFFICE INVESTMENT MANAGER HarbourVest Global Private Equity Limited HarbourVest Advisers L.P. Company Registration Number: 47907 c/o HarbourVest Partners, LLC Ground Floor One Financial Center Dorey Court 44th Floor Admiral Park Boston MA 02111 St Peter Port U.S.A. Guernsey GY1 2HT Tel +1 617 348 3707 Tel +44 (0)14 8170 2400 Fax +1 617 350 0305 Fax +44 (0)14 8170 2407
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