DOCSLIB.ORG

THE GLOBAL SECONDARY MARKET: a Growing and Evolving Investment Opportunity

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
THE GLOBAL SECONDARY MARKET: a Growing and Evolving Investment Opportunity THE GLOBAL SECONDARY MARKET: A Growing and Evolving Investment Opportunity MAY 2016 CONTENTS INTRODUCTION ____________________________________ 1 MARKET GROWTH __________________________________ 2 EVOLUTION OF DEAL TYPES ___________________________ 3 SECONDARY BUYERS ________________________________ 5 SECONDARY SELLERS _______________________________ 6 PRICING TRENDS ___________________________________ 6 GENERAL PARTNERS & SECONDARIES ___________________ 7 WHOLE FUND LIQUIDITY SOLUTIONS: FIVE KEY CONSIDERATIONS ___________________________ 8 SUMMARY ________________________________________ 9 CASE STUDIES ____________________________________ 10 REFERENCES _____________________________________ 13 INTRODUCTION The secondary market saw its earliest transactions > Accelerated capital deployment – secondary occur in the mid-1980s, when the broader private equity funds may have a more compressed draw-down period relative to primary funds, which allows capital (PE) asset class was still relatively unfamiliar to many to be invested more quickly. This feature may be institutional investors. Today, the secondary market is particularly helpful to investors looking to increase comprised of more than $40 billion of annual transaction their exposure levels to the asset class in a shorter volume, with hundreds of sellers.1 The secondary time frame. market represents an important part of the global PE > Near-term liquidity – given the maturity of the market because of the liquidity it offers institutional underlying assets in most secondary transactions at investors, the strategic value it can offer to general the time of purchase, secondary investments often partners (GPs), and the investment opportunities have the potential to generate early distributions. it provides to secondary buyers and their investors. > J-curve mitigation – unlike primary funds, The market’s evolution to date has been characterized secondary funds may have the potential to generate by both its growth and its increasing degree of strong performance in their early years as a result of the unrealized gains that may be associated sophistication. Looking ahead, the market is expected with buying assets at a discount. to continue to grow in both size and complexity given the growth in the global PE market, the value > Purchasing at a discount – PE assets are illiquid institutional investors place on liquidity, and the by nature and generally sold in private, negotiated transactions. Some sellers in need of liquidity may continued introduction of innovative liquidity solutions. be willing to sell for less than the fair value of the WHY INVEST IN SECONDARIES? investments in exchange for the ability to quickly Generally, investing in the secondary market can provide monetize their private equity assets. As such, several benefits, including: secondary purchases may take place at a discount to fair value. > Compelling risk/reward profile – secondary investments may offer investors the opportunity to > Immediate portfolio diversification – secondary earn compelling rates of return while assuming less funds typically provide diversification across stage, risk than other PE strategies. This dynamic is due industry, and geography. These funds are also unique to the shorter duration, quicker payback period, in their ability to provide investors with access to diversification, and lack of blind pool risk typically underlying partnerships with vintage years that are associated with secondary investments relative to five to 10 years old, or more. This dynamic provides other strategies. an opportunity for investors who may be new to the asset class to gain immediate exposure to a seasoned PE portfolio. 1 Greenhill Cogent, Secondary Market Trends & Outlook, January 2016, p. 1. HARBOURVEST SECONDARY MARKET REPORT | page 1 MARKET GROWTH One of the faster-growing As a subset of the global PE market, the secondary market has experienced particularly strong growth over segments within the the last decade (see Chart 1). Over this time period, the secondary market’s growth has significantly exceeded broader secondary that of the primary market as a result of an increase market is the global in the turnover ratio of limited partnership interests, the broader acceptance of the secondary market as real assets sector, a portfolio management tool, and the increasing array of transactions that have resulted from investors’ which includes energy, overarching desire for more liquidity in what is otherwise an illiquid asset class. In addition, secondary market power, infrastructure, activity often increases during periods of distress and natural resources, economic dislocation. Going forward, we expect to see continued growth and real estate. due to several trends: > Financial institutions continue to divest assets in order to comply with post-Global Financial Crisis regulations related to illiquid assets and risk-weighted capital. > Pension funds and other institutional investors use the secondary market as a tool for refocusing their portfolios and consolidating manager relationships. > Sovereign wealth funds with increasingly mature PE portfolios are becoming more active sellers. > Whole fund liquidity solutions continue to rise in popularity. FUTURE GROWTH One of the faster-growing segments within the broader secondary market is the global real assets sector, which includes energy, power, infrastructure, natural resources, > CHART 1 and real estate. Over the past decade, the sector has MARKET GROWTH FUELED BY PRIMARY MARKET seen significant increases in capital raised, number of Source: Thomson Reuters, Cogent Partners active managers, and in the breadth and complexity of strategies deployed. Investors are attracted by the PE NAV > 5 years old Secondary Market Deal Volume unique benefits these assets provide, including a stable yield component, inflation linkage, and diversification. 50 1,000 In the energy sector, for example, the underlying net 40 800 asset value (NAV) of investments with more than five $ Billions years of maturity has grown from $11 billion to over 30 600 $70 billion in the past five years, with a projected market $ Billions size of $100 billion or greater by 2017.2 A similar trend 20 400 exists in the infrastructure sector, where we have seen a threefold increase in the amount of NAV that is more 10 200 than 5 years in maturity, growing from $50 billion in 2012 to over $100 billion in 2014. HarbourVest believes 0 0 05 06 07 08 09 10 11 12 13 14 15 that the market size should continue to increase to over $150 billion or greater by 2017.3 2 Cambridge Associates, “Net Asset Value History Horizon Report, Q3 2014.” 3 HarbourVest Partners, Real Assets: An Increasingly Attractive Global Secondary Opportunity, Viewpoint, December 2015. HARBOURVEST SECONDARY MARKET REPORT | page 2 EVOLUTION OF DEAL TYPES > CHART 2 SECONDARY MARKET GEOGRAPHIES GEOGRAPHIC FOCUS The profile of secondary assets for sale is constantly Source: Setter Capital Volume Report 2015 evolving, as are the types of transactions that are completed. Geographically, U.S.-based assets account for the largest share of deal volume (see Asia/RoW 15% Chart 2). This is consistent with the relative size of the U.S. PE market where buyers have an especially strong appetite due in large part to high confidence in the U.S. market. European deal flow is also generally consistent U.S. with the relative size of the European PE market, 52% although transactions in Europe have been skewed toward more complex opportunities. The secondary Europe market in Asia continues to grow and introduce new 33% transaction types. Lastly, emerging market secondaries remain relatively nascent, as those markets continue to develop and grow. TYPES OF TRANSACTIONS The evolution of the types of transactions that comprise the overall secondary market is one of the market’s defining trends. Buyers have an especially The secondary market of the 1980s and 1990s was strong appetite due in large comprised almost entirely of traditional transactions (i.e., the purchase of one or more limited partnership part to high confidence in interests by a buyer from a single seller). While traditional transactions continue to account for a the U.S. market. majority of secondary market activity, the market has evolved to include a broad range of transactions that provide holders of PE interests with liquidity options through increasingly sophisticated deal types (see Chart 3). > CHART 3 EXPANDING UNIVERSE OF Public to Privates Captive SECONDARY DEAL TYPES Team CREATES OPPORTUNITY Spinouts Secondary Structured GP for Hire Whole Fund Traditional Direct Liquidity Solutions Portfolios Solutions ficiency Inef Traditional Traditional INEFFICIENCY TIME PERIOD 1985 - 2000 2000 - 2010 TODAY HARBOURVEST SECONDARY MARKET REPORT | page 3 Correspondingly, some secondary buyers have shaped > General partner-for-hire transactions: their investment strategies to reflect this market shift. A secondary buyer purchases a portfolio of direct While many buyers have remained focused on company investments with a newly formed acquisition the traditional part of the market, a limited number vehicle, which includes customized governance of participants have developed a focus on the and economic terms; a new manager is identified non-traditional, or complex, transaction types. As a to manage the newly formed vehicle. result of this dynamic, while the traditional end of the > Other customized solutions: A secondary market has experienced increased levels of competition buyer may develop a tailored
Load more

Recommended publications
  • Harbourvest—China: the Intersection of Innovation and E-Commerce
    PRIVATE MARKETS INSIGHTS CHINA: THE INTERSECTION OF INNOVATION AND E-COMMERCE Q&A WITH HARBOURVEST PARTNERS’ BEIJING-BASED In the following interview, Beijing-based Managing Director Sally MANAGING DIRECTOR SALLY SHAN Shan discusses the ongoing evolution of China’s digital economy, and explores some of the more promising areas for investment. One of our core, long-term investment themes focuses on the wave of technology-driven innovation sweeping the globe. Day after day, new products and services emerge that disrupt China has evolved into a global hub for innovation traditional business models, and fundamentally change the and e-commerce in a very short period of time. What have been the key drivers? way people communicate with each other and consume and To understand where we are at today, it’s helpful to trace the pay for goods and services. Nowhere are these dynamics more path of China’s digital economy and how it has matured to at play than in China, where the internet and rising demand the point where it now plays a key role in private equity for mobile technology are creating fertile ground for private strategies. There have been two 10-year periods that have investment opportunities. brought us to this point. The first came between 1998 and 2008, when we had the arrival of personal computers As always, the key to private investing success in China is and the birth of the internet. Unlike in the US – where partnering with local experts who have access to the most people embraced PCs, bought them, and put them in their proven managers.
    [Show full text]
  • Reporting Tool
    REPORT 2018ESG ANNUAL REVIEW OF HARBOURVEST’S ENVIRONMENTAL, SOCIAL, AND GOVERNANCE ACTIVITIES CONTENTS 3 14 MESSAGE FROM THE EXECUTIVE SUPPORTING EMERGING AND MANAGEMENT COMMITTEE DIVERSE-LED MANAGERS IMPACT INVESTING, FEMALE-LED VC FUNDS 4 We’re driven by the APPROACH AND GOVERNANCE 20 belief that strong PROGRAM OVERVIEW, GLOBAL ESG COMMITTEE CORPORATE RESPONSIBILITY financial returns and DIVERSITY, COMMUNITY, TALENT DEVELOPMENT, positive social change 6 OPERATIONAL HIGHLIGHTS COMMITTED TO RESPONSIBLE INVESTING can be accomplished ESG INVESTMENT PROCESS, PRI ASSESSMENT, 24 in tandem. GP ESG RANKINGS OUTREACH AND EVENTS HARBOURVEST 2018 ESG REPORT / 1 MESSAGE FROM THE “ESG factors are becoming EXECUTIVE MANAGEMENT COMMITTEE more prominent in the We are pleased to present HARBOURVEST PARTNERS’ Perhaps our most gratifying highlight came in the form of an external investment decision-making 2018 ESG REPORT, our annual review of the initiatives validation of the progress we have made. Our ESG efforts are assessed process and will only grow in and activities we undertook in 2018 to support our independently each year by the PRI, and our most recent results across importance in the years ahead.” longstanding commitment to being conscientious three core categories—Strategy and Governance (A+), Indirect Investments investors and engaged corporate citizens. (A+), and Direct Investments (A)—were our best ever and placed us in the As a leading private markets manager and investor, as well as a proud top quartile of private equity managers (see p. 7). signatory to the Principles for Responsible Investment (“PRI”), we have a dual None of these achievements would be possible without our incredibly responsibility to continuously strengthen our own ESG capabilities, and to dedicated people.
    [Show full text]
  • Annual Report
    Building Long-term Wealth by Investing in Private Companies Annual Report and Accounts 12 Months to 31 January 2021 Our Purpose HarbourVest Global Private Equity (“HVPE” or the “Company”) exists to provide easy access to a diversified global portfolio of high-quality private companies by investing in HarbourVest-managed funds, through which we help support innovation and growth in a responsible manner, creating value for all our stakeholders. Investment Objective The Company’s investment objective is to generate superior shareholder returns through long-term capital appreciation by investing primarily in a diversified portfolio of private markets investments. Our Purpose in Detail Focus and Approach Investment Manager Investment into private companies requires Our Investment Manager, HarbourVest Partners,1 experience, skill, and expertise. Our focus is on is an experienced and trusted global private building a comprehensive global portfolio of the markets asset manager. HVPE, through its highest-quality investments, in a proactive yet investments in HarbourVest funds, helps to measured way, with the strength of our balance support innovation and growth in the global sheet underpinning everything we do. economy whilst seeking to promote improvement in environmental, social, Our multi-layered investment approach creates and governance (“ESG”) standards. diversification, helping to spread risk, and is fundamental to our aim of creating a portfolio that no individual investor can replicate. The Result Company Overview We connect the everyday investor with a broad HarbourVest Global Private Equity is a Guernsey base of private markets experts. The result is incorporated, London listed, FTSE 250 Investment a distinct single access point to HarbourVest Company with assets of $2.9 billion and a market Partners, and a prudently managed global private capitalisation of £1.5 billion as at 31 January 2021 companies portfolio designed to navigate (tickers: HVPE (£)/HVPD ($)).
    [Show full text]
  • INVESTMENT VENDORS  the Following Is a Listing of the Investment Managers, Custodians, and Consultants That Serve the Massachusetts Public Pension Systems
    INVESTMENT VENDORS The following is a listing of the investment managers, custodians, and consultants that serve the Massachusetts public pension systems. The listing is based on information supplied by the retirement boards. RETIREMENT BOARD INVESTMENT VENDORS ADAMS • Capital Research and Management • Granite Investment Advisors Custodian: State Street Bank & Trust AMESBURY • PRIT ANDOVER • PRIT ARLINGTON • PRIT • Wilshire Associates Inc. Custodian: State Street Bank & Trust ATTLEBORO • Boston Advisors, LLC • Herndon Capital Management, LLC • PRIT Custodian: People’s United Bank • Daruma Capital Management, LLC • Invesco Core Real Estate USA, LP • Regions Timberland Consultant: Dahab Associates Inc. • Fidelity Institutional Asset Management • Invesco National Trust Company • State Street Global Advisors • Frontier Capital Management Co., LLC • Orleans Capital Management Corp. • Wells Capital Management Inc. • Hancock Natural Resource Group, Inc. BARNSTABLE COUNTY • Intercontinental Capital Management, LLC • PRIT • UBS Realty Investors, LLC BELMONT • AEW Capital Management, LP • Loomis Sayles & Company • RhumbLine Advisers Custodian: State Street Bank & Trust • Atlanta Capital • Pacific Investment Management Company, LLC • Rothschild Asset Management Inc. Consultant: New England Pension • Harbourvest Partners, LLC • PRIT • Scout Capital Management, LLC Consultants BERKSHIRE COUNTY • PRIT BEVERLY • PRIT BLUE HILLS REGIONAL • PRIT BOSTON (CITY) • 57 Stars, LLC • EnTrust Partners, LLC • Permal Asset Management, Inc. Custodian: State
    [Show full text]
  • Broken Confidences Sebastiaan Van Den Berg of Harbourvest Partners Are PE Players Losing Sleep Over Australia’S Super Fund Disclosure Rules? Page 7 Page 19
    Asia’s Private Equity News Source avcj.com February 25 2014 Volume 27 Number 07 EDITOR’S VIEWPOINT Bumper PE deal flow in 2013 flatters to deceive Page 3 NEWS Baring Asia, CalPERS, CDH, EQT, Fosun, GGV, Hopu, IDFC, IFC, INCJ, Kendall Court, Morningside, NSSF, Origo, Samena, Temasek Page 4 ANALYSIS Australia’s mid-market GPs wait patiently for a buyout rebound Page 16 INDUSTRY Q&A HESTA’s Andrew Major and QIC’s Marcus Simpson Page 11 Broken confidences Sebastiaan van den Berg of HarbourVest Partners Are PE players losing sleep over Australia’s super fund disclosure rules? Page 7 Page 19 FOCUS FOCUS Diversity in distress The collective spirit GPs adjust to evolving special situations Page 12 Crowdfunding gains traction down under Page 14 PRE-CONFERENCE ISSUE AVCJ PRIVATE EQUITY AND VENTURE CAPITAL FORUM AUSTRALIA 2014 Anything is possible if you work with the right partner Unlocking liquidity for private equity investors www.collercapital.com London, New York, Hong Kong EDITOR’S VIEWPOINT [email protected] Managing Editor Tim Burroughs (852) 3411 4909 Staff Writers Andrew Woodman (852) 3411 4852 Mirzaan Jamwal (852) 3411 4821 That was then, Winnie Liu (852) 3411 4907 Creative Director Dicky Tang Designers Catherine Chau, Edith Leung, Mansfield Hor, Tony Chow Senior Research Manager this is now Helen Lee Research Manager Alfred Lam Research Associates Herbert Yum, Isas Chu, Jason Chong, Kaho Mak Circulation Manager FROM 2006 OR THEREABOUTS, AUSTRALIA pace during the second half of 2013. A total of Sally Yip Circulation Administrator suddenly became the destination in Asia for GPs nine PE-backed offerings raised record proceeds Prudence Lau focused on leveraged buyout deals.
    [Show full text]
  • Private Equity Fund
    Practical guidance at Lexis Practice Advisor® Lexis Practice Advisor® offers beginning-to-end practical guidance to support attorneys’ work in specific legal practice areas. Grounded in the real-world experience of expert practitioner-authors, our guidance ranges from practice notes and legal analysis to checklists and annotated forms. In addition, Lexis Practice Advisor provides everything you need to advise clients and draft your work product in 14 different practice areas. John McDonald Restructuring Your Way to a New Tomorrow: The Emerging Trend of “Stapled Secondary” Private Equity Fund Restructurings John McDonald is a partner at Troutman Sanders LLP As funds raised in the 2006–2008 heyday of private equity reach the ends of their 10-year terms, there has been a surge of restructurings of those funds utilizing a “stapled secondary” structure. The widely publicized $1.2 billion restructuring in March 2016 of a 2008 vintage buyout fund managed by private equity pioneer Thomas H. Lee is the latest example of this trend, showing that private equity fund restructurings have become mainstream. In the Lee Equity Partners restructuring, an investment group led by prominent secondaries investor AlpInvest Partners that included Harbourvest Partners, Pantheon Ventures, and the Canadian Pension Plan Investment Board purchased the LP interests of existing fund investors for approximately $900 million and committed approximately $300 million in capital to a new fund. Because sponsors face actual or perceived conflicts of interest when restructuring their funds, private equity fund restructurings have attracted the attention of the U.S. Securities and Exchange Commission (SEC). This article describes the process of private equity fund restructurings, discusses the key considerations involved in restructurings, and provides some action items for sponsors to use to reduce the risk of SEC enforcement action when restructuring their funds.
    [Show full text]
  • Ardian Extends Global Reach with Tokyo Office
    PRESS RELEASE ARDIAN EXTENDS GLOBAL REACH WITH TOKYO OFFICE Paris, Tokyo, 15 February 2018 – Ardian, a world-leading private investment house, today announces the opening of an office in Tokyo, Japan. As well as deepening already established relationships in Japan, the new office will consolidate the company’s growth across the Asia Pacific region. Adding to Ardian’s multi-local approach to managing client relationships, the company now has a total of 13 offices, with three in Asia, following the opening of offices in Singapore and Beijing in 2005 and 2012 respectively. Japan forms an important part of Ardian’s international development strategy. It will continue to be a significant base for the company in terms of both fundraising and investing, and will build on Ardian’s established strong presence in the region. Ardian has more than a dozen blue-chip clients in Japan, which represent over $2bn of AUM and comprise some of the most respected pension plans, insurance companies and financial institutions. The office will be led by Kanji Takenaka, who joins Ardian as Head of Japan and Managing Director. Mr Takenaka’s career includes senior roles at Simplex Real Estate, Fortress Investment Group, Norinchukin Bank and most recently at HarbourVest Partners, where he held the position of Principal. Dominique Senequier, President of Ardian, said: “The opening of our office in Japan is a natural progression for us as we continue our strategy of evolving and growing our business globally. Ardian has established itself as a leading player in the global investment industry and this latest office opening marks our commitment to the region.
    [Show full text]
  • Welcome to the 12Th Annual INSEAD Private Equity Conference
    Welcome to the 12th Annual INSEAD Private Equity Conference INSEAD welcomes you to the 12th Annual Private Equity Conference. The conference, inaugurated in 2003, has become the most successful private equity and venture capital event hosted by a European academic institution. With over 1,500 alumni working in the industry worldwide, INSEAD’s presence in the private equity community is well-recognized. This conference is a gathering amongst leading practitioners, academics and the INSEAD community to debate the forces shaping the private equity industry. We are delighted to host an impressive and diverse group of experienced industry professionals here on INSEAD Europe Campus. Since the financial crisis, one of the strongest trends in private equity has been increased focus on value creation. This year’s theme, “How to achieve alpha in the current environment,” aims to delve into the topic of generating returns through operational change, and assess the implications of this trend for the future of private equity. Our keynote speakers, leveraged buyouts and operational excellence panels will explore the topic of value creation deeper. Beyond value creation, the industry is further being shaped by a number of different dynamics and intense competition. To further develop the main theme, we have lined up a focused range of panels and have assembled a diverse group of outstanding panelists and moderators for you. Our panels will attempt to give an update on the current state in different parts of the industry, such as distressed investing, infrastructure and real assets, emerging strategies and limited partner relationships. The annual conference is organized by student and alumni members of the INSEAD Private Equity Club, Global Private Equity Initiative (INSEAD faculty body focused on research in Private Equity industry), Alumni Relations and Student Life offices.
    [Show full text]
  • Slavery and Human-Trafficking Statement Financial Year Ended 31 December 2018
    SLAVERY AND HUMAN-TRAFFICKING STATEMENT FINANCIAL YEAR ENDED 31 DECEMBER 2018 INTRODUCTION HarbourVest’s response to modern slavery is rooted in the Firm’s values and its dedication to running its business with integrity and according to the highest ethical standards. Our Firm is committed to combatting modern slavery and human trafficking to the extent they touch our business. This statement describes our approach to upholding our obligations under the UK Modern Slavery Act (“MSA”) and the steps we have taken towards ensuring that slavery and human trafficking are not taking place in our business or supply chain. OVERVIEW OF THE GLOBAL HARBOURVEST ORGANIZATION HarbourVest Group Overview HarbourVest is an independent, global private markets investment specialist with 36 years of experience and more than $58 billion in assets under management, as of 31 March 2019. The Firm’s powerful global platform offers clients investment opportunities through primary fund investments, secondary investments, and direct co- investments in commingled funds or separately managed accounts. HarbourVest has more than 500 employees, including more than 125 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $36 billion to newly-formed funds, completed over $21 billion in secondary purchases, and invested over $10 billion directly in operating companies. Partnering with HarbourVest, clients have access to customized solutions, longstanding relationships, actionable insights, and proven results. HarbourVest
    [Show full text]
  • HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 1 Chair’S Statement
    Semi-Annual Report and Accounts Six Months to 31 July 2020 Building Long-term Wealth by Investing in Private Companies Introduction OUR PURPOSE HVPE exists to provide easy access to a diversified global portfolio of high-quality private companies by investing in HarbourVest-managed funds, through which we help support innovation and growth in a responsible manner, creating value for all our stakeholders. Investment into private companies requires experience, skill, funds, helps to support innovation and growth in the global and expertise. Our focus is on building a comprehensive economy whilst seeking to promote improvement in global portfolio of the highest quality investments, in Environmental, Social, and Governance (“ESG”) standards. a proactive yet measured way, with the strength of our We connect the everyday investor with a broad base of balance sheet underpinning everything we do. private markets experts. The result is a distinct single access Our multi-layered investment approach creates point to HarbourVest Partners, and a prudently managed diversification, helping to spread risk, and is fundamental to global private companies portfolio designed to navigate our aim of creating a portfolio that no individual investor can economic cycles as smoothly as possible whilst striving replicate. Our Investment Manager, HarbourVest Partners1, to deliver outperformance of the public markets over is an experienced and trusted global private markets asset the long term. manager. HVPE, through its investments in HarbourVest INVESTMENT OBJECTIVE
    [Show full text]
  • Shareholder Meeting
    17 June 2009 HarbourVest Global Private Equity Limited Informal Meeting for Shareholders Welcome Sir Michael Bunbury Chairman, HVPE HarbourVest and HVPE Attendees Sir Michael Bunbury Chairman of HVPE D. Brooks Zug Senior Managing Director and Founder of HarbourVest; Director of HVPE George Anson Managing Director of HarbourVest; Director of HVPE Steve Belgrad CFO of HVPE Amanda McCrystal Head of Investor Relations and Communications for HVPE 2 Agenda I. Welcome Sir Michael Bunbury II. Overview of the Manager – HarbourVest D. Brooks Zug III. HVPE Review Steve Belgrad • Financial Highlights • Portfolio • Commitments and Balance Sheet • Trading and Investor Relations • HVPE Outlook IV. Outlook for Private Equity George Anson V. Summary / Questions and Answers Steve Belgrad 6/1/2009 3 Overview of the Manager – HarbourVest D. Brooks Zug Senior Managing Director and Founder, HarbourVest Director, HVPE Overview of the Investment Manager – HarbourVest Partners Largest Private Independent, 100% owner-managed private equity fund-of-funds Equity Founders began private equity investing in 1978 Fund-of-Funds Manager with Total capital raised over 25 years of $30 billion Experienced, Global 78 investment professionals in Boston, London and Hong Kong Team together with a support staff of more than 140 Focus on three private equity investment strategies: primary Consistent partnerships, secondary investments, direct investments Private Equity Strategy Four principal product lines: U.S. fund-of-funds, non-U.S. fund-of-funds, secondary-focused funds, direct / co-investment funds Demonstrated One of the longest track records in the industry Upper Quartile Achieved by the same professionals that manage the portfolio today Investment Demonstrated top quartile performance across all private equity Performance strategies1 __________________ Note: (1) Where relevant benchmarks exist.
    [Show full text]
  • Annual Report & Audited Consolidated Financial Statements
    Annual Report & Audited Consolidated Financial Statements 31 JANUARY 2010 www.hvgpe.com COMPANY OVERVIEW HarbourVest Global Private Equity Limited (“HVPE” or the “Company”) is a Guernsey-incorporated company listed on the Specialist Fund Market of the London Stock Exchange and Euronext Amsterdam by NYSE Euronext, the regulated market of Euronext Amsterdam, registered with the Netherlands Authority for the Financial Markets as a closed-end investment company pursuant to section 1:107 of the Dutch Financial Supervision Act, and authorised as a closed-ended investment scheme in accordance with section 8 of the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended, and rule 6.02 of the Authorised Closed-ended Investment Scheme Rules 2008. HVPE is managed by HarbourVest Advisers L.P. (the “Investment Manager”), an affiliate of HarbourVest Partners, LLC (“HarbourVest”), a Contents private equity firm whose history dates back to 1982. HarbourVest is headquartered in Boston and 01 Financial Highlights has committed more than $30 billion to investments. The Company issued 83,000,000 shares at 02 Chairman’s Letter from Sir Michael Bunbury $10.00 per share in December 2007. 06 Investment Manager’s Review Investment Strategy Results for the Financial Year Ended 31 January 2010 Portfolio Review HarbourVest Viewpoint: The Benefits of Venture Capital Commitments and Balance Sheet Review Recent Events Investment Manager’s Market Commentary HVPE Outlook Investment Manager Key Definitions and Methodologies (see page 40) 42 Risk Factors
    [Show full text]