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 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.

WHAT IS HVPE? HVPE: A COMPLETE AND FULLY-MANAGED PRIVATE HarbourVest Global Private Equity (“HVPE” or the MARKETS PROGRAMME “Company”) is a Guernsey incorporated, London listed, / Provides access to a broad range of global private FTSE 250 Investment Company with assets of $2.3 billion markets opportunities and a market capitalisation of £1.2 billion as at 31 July 2020 / Represents a distinct, high-quality private (tickers: HVPE (£)/HVPD ($)). The Company provides markets portfolio access to investments in private companies and portfolios / Well-diversified to limit downside risk from of private companies through funds managed by individual holdings HarbourVest Partners (“HarbourVest” or the “Investment / Consistent and proven strategy Manager”), an independent, global private markets asset / Maintains a prudent approach to balance manager with more than $69 billion of assets under sheet management management2 and a long history of success. / Aims to deliver material outperformance of public markets over the long term By regularly committing capital across HarbourVest’s – Outperformance of 2.6% annualised compared to FTSE primary (fund-of-funds), secondary, and direct All-World Total Return (“FTSE AW TR”) Index over the co‑investment programmes, HVPE has created a private ten years to 31 July 2020 markets portfolio that is diversified by geography, strategy, investment stage, vintage year, and sector. As at 31 July FURTHER INFORMATION 2020, HVPE’s portfolio was made up of 49 HarbourVest funds and eight secondary co-investments3. HVPE is structured to provide investors with broad exposure to p p a carefully selected range of exciting opportunities in private .4 .12 Investment Business Model companies around the world, from technology start-ups Manager’s Report to mature, established businesses looking for the next phase of growth. p.8 p.18 Updated Portfolio Managing the Portfolio Risk Assessment

1 Technically the Investment Manager of HVPE is HarbourVest Advisers L.P. which is an affiliate of HarbourVest Partners, LLC. However, we will refer to the Investment Manager as “HarbourVest Partners” throughout the report, being the firm’s recognised name. 2 As at 30 June 2020. 3 These include five Secondary Overflow III investments, one Secondary Overflow IV investment, and Absolute, referred to as “HVPE Avalon Co-Investment L.P.”, and Conversus, referred to as “HVPE Charlotte Co-Investment L.P.”, in the Unaudited Condensed Interim Consolidated Schedule of Investments. Absolute has been fully realised; however, $466,198 remains in escrow. Performance Snapshot Six months to 31 July 2020

Strategic Report STRATEGIC REPORT Net Asset Value (“NAV”) per Share Growth 1 Performance Snapshot 2 Chair’s Statement NAV per Share Growth ($) 4 Investment Manager’s Report 8 Recent Events 9 Share Price Trading and Liquidity +2.2% 10 KPIs Six months to 31 July 2020 12 Business Model H1 2021* $28.18 14 Summary of Net Assets

15 The Private Equity Cycle GOVERNANCE REPORT FY 2020** $27.58 16 Managing the Balance Sheet H1 2020* $25.80 17 Managing Costs 18 Managing the Portfolio 12 months to 31 January 2020: +14.5% | Six months to 31 July 2019: +7.1% 20 Principal Risks and Uncertainties

Annualised Outperformance of FTSE AW TR Since Inception (2007) Supporting Information 22 About HarbourVest 23 Our Value Creation Cycle +3.4% 24 The Phases 26 Manager Spotlight 28 Top Ten Direct Companies INTERIM FINANCIAL STATEMENTS Total Shareholder Return Governance Report Share Price ($) 33 Board of Directors 34 Directors’ Report -17.6% 36 Independent Review Report to Six months to 31 July 2020 HarbourVest Global Private Equity

H1 2021* $19.90 Interim Financial Statements 37 Unaudited Condensed Interim FY 2020** $24.15 Consolidated Financial Statements H1 2020* $21.50 45 Notes to the Unaudited Condensed Interim Consolidated Financial 12 months to 31 January 2020: +28.8% | Six months to 31 July 2019: +14.7% Statements

Supplementary SUPPLEMENTARY Share Price (£) 50 Glossary of Private Market Terms 53 Alternative Performance Measures 56 Disclosures -16.8% 59 Notes Six months to 31 July 2020

H1 2021* £15.28

FY 2020** £18.36

H1 2020* £17.20

12 months to 31 January 2020: +28.8% | Six months to 31 July 2019: +20.6%

See pages 10 and 11 for more details on the Company’s Key Performance Indicators (“KPIs”). Also refer to the Alternative Performance Measures (“APMs”) on pages 53 to 55 for calculations. * H1 2021 represents position at 31 July HVPE has a US dollar-denominated NAV. It has a sterling-denominated share price (since 2020. H1 2020 represents position at 9 September 2015) and a US dollar-denominated share price (since 10 December 2018) 31 July 2019. – both quoted on the London Stock Exchange (“LSE”). The Total Shareholder Return KPI is measured in both currencies; the prices cited here are the LSE quoted prices in each ** Financial Year (“FY”) represents position of the currencies. at 31 January 2020.

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 1 Chair’s Statement

ED WARNER CHAIR

Dear Shareholder, At the half-year end, after a substantial rebound, HVPE’s This is my first statement to shareholders as the new share price had risen 66% from its March low to close at Chair of HVPE, and I am pleased to report that in spite of the £15.28 ($19.90). This marks a decline of 17% from the global outbreak of coronavirus (“COVID-19”), the Company’s 31 January 2020 price of £18.36 ($24.15). NAV per share increased by 2.2% in the first six months of the year. This return reflects the expertise of the Investment Balance Sheet Manager and, in turn, the resilience of the underlying general At the onset of the crisis, as detailed in HVPE’s 2020 Annual partners and investee companies to which HVPE has Report and Accounts, the Board acted swiftly to request exposure through the HarbourVest platform. a reassessment of the Company’s near-term financial projections from the Investment Manager, which conducted Financial Performance an early and thorough portfolio risk assessment exercise, While the $28.18 NAV per share at 31 July 2020 reflects the results of which fed into a set of updated forecast a positive return for HVPE, the six-month period saw much scenarios. In anticipation of a likely negative impact on more pronounced NAV fluctuations than usual because cash flows, and to ensure HVPE was fully prepared for of COVID-19. March-end valuations from the underlying a worst-case scenario, the Board drew on the Company’s managers declined, driven by widespread uncertainty $600.0 million credit facility (the “Facility”). In April around the impact of the pandemic on the economy and a drawdown of $200.0 million was initiated to ensure businesses, and against a backdrop of falling stock markets sufficient near-term liquidity to address any potential cash worldwide. However, underpinned by resilient sectors such flow imbalances. As expected, distributions did slow as technology and healthcare, and alongside a rebound in markedly, while the elevated capital calls from HarbourVest public markets, HVPE’s NAV per share saw a strong return funds seen in March continued into April, before moderating to growth on receipt of Q2 valuations. for the remainder of the reporting period. HVPE’s Facility was put in place as a back stop to cover any periods such Although HVPE’s NAV volatility has been much less severe as this, enabling us to continue to invest through downturns than that of the public markets, the Company’s share price and to take advantage of attractive opportunities as they nevertheless experienced a sharp fall mid-March, just arise. As cash flows began to recover, in July the Board weeks after reaching an all-time high in sterling of £18.68. approved a partial repayment of $80.0 million. As at This created a substantial widening of the discount to NAV, 31 July 2020, HVPE held cash and cash equivalents which reached 60% at its widest in the period. This discount of $109.8 million on its balance sheet, with a balance was very similar to that experienced in the depths of the of $120.0 million outstanding on the Facility. Global Financial Crisis (“GFC”), but thankfully proved short-lived as market participants took advantage of the opportunity to acquire HVPE shares at depressed levels.

2 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 Given the material economic uncertainty, the Board also Portfolio Risk Assessment Update STRATEGIC REPORT took the prudent step of temporarily pausing new The Recent Events section contains the results of commitments to HarbourVest funds. This pre-emptive an updated portfolio risk assessment exercise on page 8. measure was intended to help alleviate any risk of increased We remain encouraged by the improved outcome, citing that pressure on the balance sheet. It has since been agreed to the vast majority of companies assessed (83%) fall into the recommence the commitment plan. However, we should “moderate to limited” impact categories at October 2020, remind shareholders that due to the Company’s existing against 81% for the same data set in April. unfunded commitments to HarbourVest funds, there has been consistent deployment into investment opportunities, Update on ESG as evidenced by capital calls through the period. As an increasingly important focus, we asked the Investment GOVERNANCE REPORT The Board also agreed in May to participate in a secondary Manager to provide an update on its ESG initiatives. co‑investment transaction, made available to HVPE as The Board remains encouraged by HarbourVest’s a result of existing commitments to HarbourVest funds. heightened attention to ESG issues in screening underlying This echoed events following the GFC, when HVPE used its managers. In addition, as part of the Management credit facility to invest alongside HarbourVest funds in two Engagement and Service Provider Committee’s annual prominent public to private transactions, both of which review, the Board now evaluates service providers on their delivered attractive returns to the Company. approach to ESG factors.

Board Changes Outlook At the AGM in July, Sir Michael Bunbury stood down as The Directors recognise that this has been a challenging INTERIM FINANCIAL STATEMENTS Chair, having led the Board with distinction since HVPE’s time for many, and hope all HVPE’s shareholders and inception in 2007. On behalf of all shareholders I would like stakeholders have been reassured by the decisive actions to thank him for his immense contribution to the growth taken by this Board on their behalf, to navigate through the of the Company. adversity to date. While the growth in HVPE’s NAV per share so far this year has been pleasing, COVID-19 is likely to In planning for the retirement of other long-standing remain a cloud over the global economy for some time directors over the next couple of years, we are very much yet. That said, the calibre of our investments, the current alive to the benefits the Board might gain from increasing structure of the portfolio and the Company’s commitments, further the diversity of its members. The Board welcomes together provide a firm basis from which to view the future initiatives such as the Hampton-Alexander Review, and with confidence. will consider all aspects of diversity as part of our succession planning. Ed Warner 26 November 2020 PERIOD POST HALF-YEAR END Financial Performance SUPPLEMENTARY Since the half-year end, HVPE has published three NAV updates. At 31 October, the NAV per share stood at $28.60, an increase of 1.5% from 31 July 2020. This is still largely based on 30 June 2020 valuations. The Board is encouraged by the improved cash flow profile in recent months and the continued progress in the underlying portfolio. A particularly strong contributor post period came from a large software Initial Public Offering (“IPO”), and provides an example of the opportunities that investment in HVPE can provide exposure to. Alongside the value of the Company’s portfolio, the share price has also continued to recover, reaching £17.24 as at 20 November 2020, an increase of 12.8% from 31 July 2020.

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 3 Investment Manager’s Report

INTRODUCTORY NOTE final 31 July 2020 NAV per share figure quoted in this report. This report presents a summary of the Company’s Additionally, expenses over the six-month period were more performance in the six months to 31 July 2020. During this than offset by gains in foreign currency. period, the far-reaching impact of COVID-19 weighed on Most major equity market indices ended the first half of economic activity around the world, and continues to do the calendar year broadly flat after strong, “V-shaped” so at the time of writing. recoveries during the second quarter. HVPE’s public market In this report, disclosure is provided regarding the steps benchmark, the FTSE AW TR Index (in US dollars), taken by the Board and the Investment Manager to meet marginally decreased by 0.1% in the six months to 31 July the ongoing challenges arising from these adverse 2020. Although HVPE’s NAV per share growth of 2.2% circumstances. More specifically: materially outperformed this over the period, public markets tend to be more volatile especially during periods of / In this section, under Portfolio Performance below, uncertainty, and therefore short-term comparisons are less an update on performance over the reporting period meaningful. Longer-term comparisons through the cycle are with reference to the impact of COVID-19 is provided. more reflective of HVPE’s relative performance; measured / Under Recent Events on page 8, the latest developments over the ten years to 31 July 2020, HVPE’s NAV per share since the half-year end, and position of the NAV per share, outperformed the FTSE AW TR Index by 2.6% on an following publication of the latest month-end estimate annualised basis in US dollar terms (refer to the Alternative (31 October 2020), on 20 November 2020 are detailed. Performance Measures on page 54 for this calculation). / Within the Period Since 31 July 2020 section on page 9 the effect on HVPE’s share price is considered. During the six months ended 31 July 2020 there was / Due to the material impact that COVID-19 has had on a $54.6 million net gain on investments, contributing to society and the economy, and in turn, the Company, the an overall increase in net assets of $48.1 million. Of the Principal Risks and Uncertainties section on pages 20 $54.6 million, the majority – 74% – came from unrealised to 21 has been updated to reflect any additional risks growth within the portfolio. This compares with the Board has identified as a result of the pandemic. a $141.7 million net gain on investments and overall increase / The assumption that the Company is and will continue to in net assets of $136.3 million for the six months to 31 July be a Going Concern at the date of this report, as detailed 2019. The lower overall net gains in this reporting period in the section on page 34, has been considered in light compared to the same period last year reflect the reduced of COVID-19 and has been supported by updated models exit activity during the six months, and overall impact of provided by the Investment Manager. COVID-19 on the portfolio.

PORTFOLIO PERFORMANCE In percentage terms, the Primary portfolio was the best NAV Per Share – Six Months to 31 July 2020 performing strategy, delivering value growth of 4.4% over the HVPE’s portfolio generated a positive NAV per share return six months. Geographically, the strongest gains came from in the six months to 31 July 2020. The Company’s NAV per the European portfolio, which generated a value increase share increased by 2.2% over the reporting period from of 3.6%; this was followed closely by the US assets, which $27.58 at 31 January 2020 to $28.18 at 31 July 2020. returned 3.5%. In terms of stage, Venture and Growth Equity was the strongest performer, growing 8.1% over the six Despite this solid half-year performance, it is important months ended 31 July 2020. More information on the growth to note that the onset of COVID-19 did lead to increased drivers can be found on page 25. volatility in HVPE’s monthly estimated NAV per share performance throughout the reporting period. In particular, As at 31 July 2020, HVPE held investments in 49 1 the estimated NAV per share figure at 30 June 2020 HarbourVest funds and eight secondary co‑investments of $25.67, which largely reflected Q1 2020 valuations, (compared with 49 and seven, respectively, at 31 January represented a material decline from the audited 31 January 2020). Of these, the largest drivers of NAV per share growth 2020 NAV per share of $27.58. The subsequent receipt of during the six months to 31 July 2020 are described below: Q2 2020 valuations, however, revealed strong gains across / Secondary Overflow IV was the largest contributor, all strategies as the global economy had staged a partial adding $0.16 to HVPE’s NAV per share. This fund includes recovery. These Q2 2020 valuations form the basis of the the June 2020 equity commitment to an attractive

1 These include five Secondary Overflow III investments, one Secondary Overflow IV investment, and Absolute, referred to as “HVPE Avalon Co-Investment L.P.”, and Conversus, referred to as “HVPE Charlotte Co-Investment L.P.”, in the Unaudited Condensed Interim Consolidated Schedule of Investments. Absolute has been fully realised; however, $466,198 remains in escrow.

4 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT NAV per Share ($) Growth of 2.2% in the Six Months to 31 July 2020

0.33 28.18 0.08 (0.10) 0.10 (0.12)

0.10 0.01 (0.08)

0.12 GOVERNANCE REPORT

0.16

27.58

NAV per Secondary Fund X Co-Investment Fund IX Dover X Other Management Performance Net Operating Foreign NAV per Share at Overﬂow IV Venture V Venture HarbourVest Fees3 Fees4 Expenses5 Currency Share at 31 Jan 2020 Funds2 31 July 2020 Gross Realised and Unrealised Gains1

1 Realised and unrealised gains are shown net of management fees, performance fees and foreign currency in the Unaudited Condensed Interim Consolidated Statement of Operations. 2 Realised and unrealised gains from the balance of 45 other HarbourVest funds and seven secondary co-investments in the Investment Portfolio. 3 Management fees include management fees from HarbourVest funds and secondary co-investments as shown in the Unaudited Condensed INTERIM FINANCIAL STATEMENTS Interim Consolidated Statement of Operations ($378,524). 4 Please refer to page 17 for more information on the performance fees. 5 Operating expenses exclude management fees ($378,524) and are shown net of interest income ($339,085).

secondary deal made available to HVPE as a result of its primarily into new opportunities, part of the total was used existing commitments to HarbourVest funds, as detailed to support existing investments and to fund deals closed on page 12 of the Company’s 2020 Annual Report and in the preceding months. Accounts. This growth was driven by unrealised gains Elevated capital calls coincided with a sharp fall in generated by revaluation and asset appreciation over distributions beginning in April and May, with the result that the period. HVPE experienced significant cash outflow on a net basis. / Fund X Venture, a US-focused venture fund-of-funds, As a prudent measure, on 9 April 2020, HVPE provided notice was the second largest contributor adding $0.12 to NAV to its lenders, Credit Suisse and Mitsubishi UFJ, to draw down per share. This is a 2015 vintage fund in its growth phase. $200.0 million from the Company’s $600.0 million Facility. Most of this contribution came from unrealised gains.

Subsequently, based on an updated cash flow analysis SUPPLEMENTARY / Following closely behind this was Co-Investment V, presented by the Investment Manager, the Board approved a global direct co-investment fund, which added $0.10. an $80.0 million partial repayment. At 31 July 2020, following This 2018 vintage fund is currently in the investment this repayment, the Facility was $120.0 million drawn, phase. As might be expected at this stage in the fund’s leaving HVPE with access to the remaining $480.0 million. life, most of this growth was derived from Together with the Company’s cash balance, this large pool of unrealised gains. available liquidity ensures that HVPE retains the ability to meet / Fund IX Venture, a 2011 vintage US-focused venture its unfunded commitments (the “Investment Pipeline”) and fund-of-funds, also added $0.10 to NAV per share. allows for the potential to capitalise on new opportunities as / Dover X, a 2019 vintage global secondary fund, was the they arise. Overall, net negative cash flow including operating fifth largest contributor, adding $0.08 to NAV per share expenses in the period resulted in HVPE’s cash balance over the period. declining from $130.6 million at 31 January 2020 to PORTFOLIO CASH FLOWS AND BALANCE SHEET $109.8 million at 31 July 2020 (noting that the closing cash HVPE was a net investor in the six months to 31 July 2020, position includes the contribution from the $120.0 million draw following capital calls of $214.2 million into HarbourVest on the credit facility). As a reminder, the Facility has a five-year funds (six months to 31 July 2019: $202.4 million) and cash evergreen structure. At the outset it had an initial two-year distributions of $78.7 million (six months to 31 July 2019: no-notice provision, giving an initial term of seven years to $138.9 million). This resulted in $135.5 million net investment January 2026. From January 2021, the lenders have the over the reporting period, driven by elevated capital calls option to serve notice, but the notice given must be during March and April. While this capital was deployed a minimum of five years.

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 5 Investment Manager’s Report continued

HVPE has indirect exposure, on a look-through basis, to PORTFOLIO COMPANIES a pro rata share of borrowing carried on the balance sheets During the period, the ten largest individual company of some of the HarbourVest funds (referred to as HarbourVest realisations by HVPE’s share of proceeds generated total Partners (“HVP”) fund-level borrowing) in which HVPE is distributions of $39.2 million. Of these ten companies, four a Limited Partner (“LP”). It is important to note that HVPE were in HVPE’s top 50 portfolio companies at 31 January has no additional liability for these borrowings beyond its 2020. Further details are provided on these four below uncalled commitments to each fund. The majority of this (ordered by size of distribution). The top ten distributions fund-level borrowing represents delayed capital calls, as by value are listed on page 24. a portion of the unfunded commitments has been invested / HVPE received $6.0 million from the partial sale of through the use of subscription credit lines at the fund level, publicly-traded shares of TeamViewer over the period. but the capital has not yet been called from HVPE. TeamViewer, a software solutions provider listed on the At 31 July 2020, HVPE’s share of HVP fund-level borrowing Frankfurt Stock Exchange, was HVPE’s ninth largest on a look-through basis was $357.0 million, a net decrease company at 31 January 2020. of $9.8 million from $366.8 million at 31 January 2020. / HVPE’s share of proceeds from the investment held in Expressed as a percentage of NAV, the figure decreased Knowlton Development Corporation (“KDC”), a leading from 16.7% to 15.9% over the six-month period. In order contract manufacturer of health and personal care to estimate the total potential impact on NAV, an investor products, was $4.3 million. KDC was HVPE’s 12th largest should take the total fund-level borrowing figure of company at 31 January 2020. $357.0 million and factor in HVPE’s net cash/debt position / HVPE received $3.6 million from the investment held in at the Company level (net debt $10.2 million). As at Lytx, a provider of video safety telematics software for 31 July 2020, the resulting net total borrowing figure vehicles. Lytx was HVPE’s 11th largest company at of $367.2 million would translate to an approximate level 31 January 2020. of look-through gearing of 16.3%. More detail on the HVP / HVPE’s share of proceeds from the sale of human fund-level borrowing, and how we factor this into our resources software solutions provider Saba Software to balance sheet management, can be found under Managing Cornerstone OnDemand, was $3.5 million. Saba Software the Balance Sheet on page 27 of the Company’s 2020 was HVPE’s 49th largest company at 31 January 2020. Annual Report and Accounts. Further detail on the Facility, During the six months ended 31 July 2020, there were and criteria upon which it can be drawn, can be found under 119 liquidity events, down from 178 for the six months to Note 6 Debt Facility on page 48 of the Unaudited 31 July 2019. This represents a decline of 33% compared to Condensed Interim Consolidated Financial Statements. the same period last year. The lower volume of exit activity In the reporting period, the largest HarbourVest fund capital for the first half of 2020 resulted from the disruption and call ($31.5 million) came from Fund XI Buyout, a 2018 vintage associated uncertainty caused by COVID-19, leading US-focused buyout fund-of-funds. Other large capital calls many General Partners (“GPs”) to suspend or delay exit originated from Co-Investment V ($30.0 million) and Fund XI processes. Approximately 73% (87) of the liquidity events in Venture ($25.7 million), both 2018 vintage funds currently HVPE’s portfolio were trade sales or sponsor-to-sponsor in the investment phase and building out their portfolios. transactions, with the remaining 27% (32) being IPOs. Following these were calls to fund investment activity from Notable IPOs during the period included Zoom Information Fund X Buyout ($17.6 million), 2019 Global Fund (business database provider), GoHealth (technology-based ($11.5 million), and Dover X ($10.0 million). health insurance services), and Revolution Medicines (clinical-stage oncology). Distributions in the HVPE portfolio were driven by a mix of HarbourVest funds across all strategies, with the largest total Of HVPE’s total 119 liquidity events, 81, or 68%, related to amount in the period ($9.7 million) received from Fund IX venture-backed companies. This figure is representative Venture, a US-focused venture fund-of-funds currently of wider market trends as there were a considerable number approaching its mature phase, which distributed proceeds of venture-related exits in the first half of the year, with the received from multiple underlying partnerships. The 2013 technology and healthcare sectors dominating this activity. Direct Fund, a global direct co-investment fund in its growth phase, followed with distributions totalling $7.7 million, which included proceeds received from the 2019 sale of UK-based telecom tower operator Eaton Towers.

6 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 COMPANY ACTIVITY By contrast, investment activity slowed down significantly STRATEGIC REPORT New Fund Commitments across all regions with deal activity totalling $326.7 billion In the six months ended 31 July 2020, HVPE made total in the US (H1 2019: $404.7 billion) and €46.3 billion in commitments of $87.8 million across two HarbourVest funds Europe (H1 2019: €73.7 billion) – decreases of 19% and (six months to 31 July 2019: $315.0 million). This took total 37%, respectively. The sharp decline in capital deployed unfunded commitments to $1.7 billion at 31 July 2020. was driven by a multitude of COVID-19-related factors as GPs temporarily paused or terminated transactions, with Of the total capital committed, the largest commitment attention re-focused on existing portfolio companies. ($50.0 million) was made to Dover X, a global secondary Unprecedented policy action from central banks and fund. This brings the total amount committed by HVPE to governments has led to a partial recovery in recent months. GOVERNANCE REPORT this fund to $150.0 million. The remaining amount was However, the “second wave” of COVID-19-induced a commitment of $37.8 million to a secondary transaction lockdowns could potentially dampen the prospect of within Secondary Overflow IV as mentioned on page 4 an imminent return to normal levels of investment activity. of this report. The deal is structured such that HVPE has In the interim, bolt-on investment strategies and distressed made a gross commitment of $37.8 million but expects only opportunities may be attractive propositions for GPs, along half of this amount ($18.9 million) to be called over time. with fast-growing sectors such as cloud computing, These commitments are in line with the Company’s Strategic ecommerce, cybersecurity, cashless payments, and Asset Allocation (“SAA”) targets and reflect the Investment collaboration software. Manager’s and Board’s current perspective on the most Exit value and volume in the private equity asset class appropriate portfolio composition required to optimise were materially lower across all regions during the first half INTERIM FINANCIAL STATEMENTS long-term NAV growth for shareholders. of the year. Public market volatility and economic uncertainty The comparatively low level of commitments made during resulted in significant markdowns for some portfolio the first half of the year was a result of a decision by the company valuations at the end of Q1. This may explain the Board and the Investment Manager to place HVPE’s considerable reduction in appetite for exits in April and May, commitment plan in respect of new HarbourVest funds indicating that GPs generally preferred to extend holding temporarily on hold, in order for the Investment Manager periods rather than liquidate assets at potentially discounted to review the Company’s portfolio construction priorities prices. Estimated exits in the US totalled $138.4 billion and during this uncertain period. A further assessment has since 392 in number, representing declines of 37% and 36% in been made, and new fund commitments have restarted as value and volume, respectively, compared to H1 2019 totals. reported under Recent Events on page 8. In the meantime, Asia Pacific and Europe were also subdued, with the latter HarbourVest funds from the existing Investment Pipeline recording a total €97.0 billion of exits, which puts it on pace have continued to call capital for new investments, enabling for its lowest annual total in six years. Nevertheless, over the the Company to take advantage of attractive opportunities. summer of 2020 we saw exit activity in all regions begin to rebound following the recovery in public markets in Q2, SUPPLEMENTARY MARKET ENVIRONMENT: although considerable uncertainty remains. SIX MONTHS TO 30 JUNE 20201 Private equity fundraising remained robust in the US and Europe during the first half of 2020, totalling $101.6 billion (H1 2019: $102.8 billion) and €19.6 billion (H1 2019: €12.0 billion), respectively, across a total of 139 funds (H1 2019: 76 funds). The comparably high figures this year were driven by established GPs with long-standing LP relationships, which had started their fundraising processes earlier in the year.

1 Source: Pitchbook database.

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 7 Recent Events

NEW COMMITMENTS By October 2020, the Investment Manager had completed In October and November 2020, HVPE agreed to participate a further second-round portfolio risk assessment. in three potential transactions as a result of the Company’s While broadly similar in methodology to the first, this most existing commitments to HarbourVest funds. The combined recent analysis focused on the larger positions within the commitment in principle is up to $34.3 million, however, portfolio. This assessment resulted in approximately 78% these transactions are subject to completion, and could also of HVPE’s portfolio by value being reviewed. To provide be scaled-back. It is anticipated that these transactions will a like-for-like comparison, the equivalent April results for the close on or before 31 December 2020. Further information same October sample set have been updated and included will be provided in the estimated monthly NAVs as and when below – noting they will differ from the figures published on the transactions complete. 24 June 2020.

HVPE PUBLISHED ESTIMATED NAV As of October, 83% of the assessed portfolio was classified AT 31 OCTOBER 2020 as expected to experience limited or moderate impact while HVPE publishes its estimated NAV on a monthly basis. only 6% was identified as high risk at that point in time as These reports are available on the Company’s website, shown in the chart below. This compares to 81% and 9%, generally within 20 calendar days of the month end. respectively, showing an improvement over the six months.

On 20 November, HVPE published an estimated NAV per Portfolio Risk Assessment: Latest Results share at 31 October 2020 of $28.60 (£22.09), an increase of $0.42 from the final 31 July 2020 NAV (US GAAP) figure October 2020 of $28.18. This latest NAV per share is based on a valuation High 6% breakdown of: 13% as at 31 October (representing the Heightened 11% public companies in the portfolio); 3% actual 30 September Moderate 41% 2020; and 84% actual 30 June 2020. Consistent with Limited 42% previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cash flows, and any April 2020 known material events to 31 October 2020. High 9% The Investment Pipeline of unfunded commitments Heightened 10% decreased from $1,681.7 million at 31 July 2020 to Moderate 39% $1,613.8 million at 31 October 2020, based on capital Limited 42% funded and taking foreign exchange movements into account. Risk Level Description At the end of October HVPE’s borrowing was $120.0 million. High Company currently experiencing material HVPE’s look-through exposure to borrowing at the disruption from COVID-19 HarbourVest fund level had increased by $28.8 million to $385.8 million. The latest balance sheet ratios can be found Heightened Company likely to experience significant disruption from COVID-19 in the factsheet on the HVPE website (www.hvpe.com).

PORTFOLIO RISK ASSESSMENT UPDATE Moderate Company expected to experience some disruption, primarily due to general In April 2020, the Investment Manager embarked on demand slowdown a bottom-up assessment of the likely impact of COVID-19 Limited Company likely to be only moderately on HVPE’s portfolio. The results of this exercise, as reported impacted, or may even see benefit in the in the Company’s 2020 Annual Report and Accounts on current environment page 11, indicated that the majority of HVPE’s assessed portfolio by value had been deemed likely to experience only a limited or moderate impact, with a relatively small proportion expected to be materially impacted.

8 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 Share Price Trading and Liquidity

SIX MONTHS TO 31 JULY 2020 HVPE’s daily share trading volume increased by 46% in STRATEGIC REPORT Between 1 February and 31 July 2020, HVPE’s share price the six months to 31 July 2020, with an average day during in sterling1 decreased from £18.36 to £15.28, or 16.8%, the period seeing approximately 77,000 shares traded following a particularly volatile period due to the impact of (six months to 31 July 2019: 53,000)4. COVID-19 on financial markets. PERIOD SINCE 31 JULY 2020 On 19 February 2020, HVPE’s share price in sterling reached Since 31 July 2020, the share price has continued to an all-time high of £18.68. However, the ensuing COVID-19 rebound, albeit with periodic bouts of volatility. During the pandemic declared toward the end of Q1 led to a broad- period 1 August to 20 November 2020, the share price based sell-off across global public equity markets. HVPE,

increased from £15.28 to £17.24, or 12.8%. This has resulted GOVERNANCE REPORT along with its peer group and many other listed companies, in a further narrowing of the live discount to 19.9%, against experienced sharp share price declines. From the trough of the 31 October estimated NAV per share of $28.60 (sterling £9.21 on 19 March 2020, HVPE’s share price staged a partial equivalent of £21.53 at 20 November when using the recovery and closed on 31 July 2020 at £15.28, an increase USD-GBP FX rate of 0.7528), the live NAV per share of 66% from that low point. in the market on 20 November.

The declining share price resulted in a significant widening The market capitalisation of the Company as at of the “live” discount2 over the reporting period from 9.9% 20 November 2020 was £1.4 billion, and as of the at 31 January 2020 to 22.1% at 31 July 2020. Although this same date HVPE was ranked 126th in the FTSE 250. is notably wider than 31 January 2020, this latter figure was 3 inside the listed private equity fund-of-funds peer group INTERIM FINANCIAL STATEMENTS average of 24.0%, highlighting the broader trend across the sector. The definitions of “notional” and “live” discounts are provided on page 50. Details of these calculations and other theoretical discounts can be found on page 53.

Share Price and NAV per Share Movement from 31 January 2015 to 20 November 2020 (£)

£25.00 £21.54 £21.53 £20.88

£18.38 £20.00 £18.36 £17.24 SUPPLEMENTARY £15.12 £14.68 £15.28 £15.00 £11.76 £14.26 £12.52 £10.53 £11.95 £10.00 £8.47 £8.71

£5.00

£0.00 31 Jan 31 Jan 31 Jan 31 Jan 31 Jan 31 Jan 31 Jul 20 Nov 2015 2016 2017 2018 2019 2020 2020 2020 Share price NAV 1 The sterling quote is the most actively traded. However, HVPE also has a US dollar share price quote which has limited trading. At 31 July 2020 the US dollar share price was $19.90. 2 The live discount is calculated based on the NAV per share available to the market at 31 July 2020, that being the 30 June estimate of $25.67 (sterling equivalent of £19.62 when converted at the prevailing USD/GBP exchange rate of 0.7642 at 31 July 2020). A live discount of 22.1% exists when comparing the estimated sterling equivalent NAV per share of £19.62 with the share price of £15.28 on 31 July 2020. 3 The peer group refers to the UK listed private equity fund-of-funds: BMO Private Equity Trust, ICG Enterprise Trust, JPEL Private Equity, Pantheon International Plc, and Standard Life Private Equity. Data provided by J.P. Morgan Cazenove. 4 Based on the median daily trade volumes. HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 9 KPIs

HVPE uses a number of KPIs that seek to support its investment objective.

Figures labelled “H1 2021” represent a position as at 31 July 2020 or movement in the six months ended 31 July 2020. All other figures, unless otherwise stated, represent the financial year (“FY”). Further commentary beyond the reporting date on the NAV per share and share price can be found on pages 8 and 9, respectively. 1 NAV per Share Growth

DESCRIPTION COMMENTARY 2020, HVPE outperformed the FTSE HVPE seeks to achieve growth in NAV Over shorter time periods, the nature AW TR Index by 2.3%. Over the last per share materially ahead of public and timing of HVPE’s valuation process 10 years and since inception, HVPE has markets over the long term, as defined and the relative volatility of public outperformed the FTSE AW TR Index by the FTSE AW TR Index in US dollars. markets can result in significant by 2.6% and 3.4%, respectively. The FTSE AW TR is a global equity divergence from the FTSE AW TR Index index with geographical weightings in either direction, as demonstrated in comparable to HVPE’s portfolio. prior years. In the six months to 31 July

A. NAV per B. Relative to C. Annualised Outperformance Share ($) FTSE AW TR of FTSE AW TR Since Inception (2007) +2.2% +2.3% +3.4% 12 months to 31 January 2020: +14.5% 12 months to 31 January 2020: -2.2% 31 January 2020: +3.4% Six months to 31 July 2019: +7.1% Six months to 31 July 2019: -1.2% 31 July 2019: +3.6%

H1 2021 $28.18 H1 2021 2.3% D. Annualised Outperformance of FTSE AW TR Over 10 Years FY 2020 $27.58 FY 2020 -2.2% FY 2019 $24.09 FY 2019 19.3% +2.6% FY 2018 $21.46 FY 2018 -12.0% 31 January 2020: +2.5% 31 July 2019: +2.8%

2 Total Shareholder Return

DESCRIPTION COMMENTARY which led to a broad-based sell-off The key measure of HVPE’s Approximately 70% of HVPE’s across global public equity markets. performance is, ultimately, the total shareholders are UK based, and the The US dollar quote produced return experienced by the Company’s majority of trading volume is in sterling. a negative 17.6% return over the shareholders. While NAV per share is The Total Shareholder Return in sterling same period. the major driver, other factors are also is, therefore, an important figure. The important including, most notably, the decline of 16.8% for the six months level of any premium or discount to NAV ended 31 July 2020 was due to the at which the Company’s shares trade. onset of the COVID-19 pandemic in Q1,

A. Share Price (£) B. Share Price ($) C. Share Price ($) Relative to FTSE AW TR -16.8% -17.6% -17.5% 12 months to 31 January 2020: +28.8% 12 months to 31 January 2020: +28.8% 12 months to 31 January 2020: +12.1% Six months to 31 July 2019: +20.6% Six months to 31 July 2019: +14.7% Six months to 31 July 2019: +6.4%

H1 2021 £15.28 H1 2021 $19.90 H1 2021 -17.5%

FY 2020 £18.36 FY 2020 $24.15 FY 2020 12.1%

FY 2019 £14.26 FY 2019 $18.75 FY 2019 12.6%

FY 2018 £12.52 FY 2018 $17.77 FY 2018 -9.9%

10 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 3 Balance Sheet Strength

DESCRIPTION A. Total Commitment B. Rolling Coverage The Board and the Investment Manager Ratio Ratio actively monitor the Company’s balance sheet by means of a set of key ratios, with a view to maintaining a robust financial position under all plausible 175% 63% forecast scenarios. Please see Managing 31 January 2020: 176% 31 January 2020: 75%

the Balance Sheet on page 16 for STRATEGIC REPORT more detail. H1 2021 175% H1 2021 63% COMMENTARY The Total Commitment Ratio decreased FY 2020 176% FY 2020 75% in the six months ended 31 July 2020 as a result of the fewer commitments FY 2019 173% FY 2019 72% made during the period combined with an increase in NAV. The ratio remains FY 2018 157% FY 2018 85% below the upper limit set by the Board and represents a level that the Investment Manager believes is optimal GOVERNANCE REPORT for long-term NAV per share growth. C. Net Cash D. HarbourVest Fund-Level as a Percentage Borrowing as a Percentage The Rolling Coverage Ratio decreased of NAV* of NAV due to a downward adjustment to the current year’s estimated realisations, following the lower level of distributions received during the first half of the year. -0.5% 15.9% HarbourVest fund-level borrowing 31 January 2020: 5.9% 31 January 2020: 16.7% predominantly represents unfunded commitments that have yet to be called; H1 2021 15.9% the underlying HarbourVest funds have H1 2021 -0.5% invested this capital using subscription FY 2020 16.7% credit lines and will call this capital over FY 2020 5.9% INTERIM FINANCIAL STATEMENTS time. Prospective changes in fund-level FY 2019 14.2% borrowing are factored in to HVPE’s cash FY 2019 8.9% flow modelling and scenario testing as FY 2018 13.9% presented regularly to the Board. FY 2018 15.0% * Cash position at 31 July 2020. Excludes HarbourVest Fund-Level borrowing.

4 Liquidity in the Shares (Daily Trading Volume)

DESCRIPTION A. Median Daily B. Mean Daily Current and prospective shareholders Trading Volume Trading Volume rightly place a high value on liquidity as it provides reassurance that there is a ready market in the shares should they

wish to manage their position. The SUPPLEMENTARY Board and the Investment Manager +46.3% +63.6% 12 months to 31 January 2020: +17.2% 12 months to 31 January 2020: -2.1% monitor liquidity on a regular basis using Six months to 31 July 2019: +17.4% Six months to 31 July 2019: +3.9% two daily averages: the median and the mean (see page 51 for definitions H1 2021 77,041 H1 2021 114,136 of these terms). FY 2020 52,671 FY 2020 69,764 COMMENTARY Daily liquidity, measured by median FY 2019 44,935 FY 2019 71,277 share trading volume, rose considerably in the six months to 31 July 2020 and FY 2018 33,828 FY 2018 67,857 stands at a multi-year high in terms of the median average. The median is the figure used by FTSE Russell for index assessment purposes. The mean daily trading volume also increased substantially over the period. The large uplift in share trading activity may be explained in part by the significant market volatility during the period.

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 11 Business Model Creating Value at Every Level of our Business

KEY STRENGTHS AND SOURCES OF VALUE

Active Balance Sheet Management Investment in and Alongside HarbourVest Funds Selectively Diversified Investment Portfolio Profitable Realisations Grow NAV per Share and HVPE maintains a prudent approach to balance sheet HarbourVest, the Investment Manager, is an independent, Research indicates that the dispersion of returns in private Become the Firepower for Future Investments management and invests within a set of defined financial global private markets investment specialist, with over markets investing is greater than that typically observed in HVPE, in effect, provides part-ownership of a broad range ratios with the aim of ensuring that there is sufficient cash 35 years of experience and more than $69 billion of assets public equity portfolios*. In some strategies, notably venture of underlying private companies, spanning early venture to or credit available to meet its commitments, whilst also under management as at 30 June 2020. investing, we observe that a small number of funds deliver more mature businesses. It is the success of these which striving to avoid an excessive build-up of cash on the returns dramatically in excess of the median. This means that drives returns. HVPE is committed to delivering material balance sheet. Investment into Private Companies diversification across multiple funds and investments is critically long-term outperformance in NAV per share as compared HVPE provides a complete private markets solution for important for optimising risk-adjusted returns. By following its with public markets. Ultimately, this is locked in via strong Strategic Asset Allocation (“SAA”) public investors by actively managing the Investment SAA targets, HVPE has built a well-diversified portfolio as realisations, the proceeds of which are then reinvested into HVPE takes a long-term view in building and maintaining Portfolio through four key phases of the private equity shown in the diagram below. new private markets opportunities. its portfolio, working to a set of rolling five-year portfolio cycle: Commitment, Investment, Growth, and Maturity. construction targets aimed at optimising long-term NAV The Company’s approach is to make future commitments Multi-manager Approach Environmental, Social, and Governance (“ESG”) growth. See pages 18 and 19 for more details. to ensure continuous investment through the cycle. Effectively, HVPE provides exposure to approximately Embedded in the HarbourVest Investment Process 30 individual HarbourVest fund managers, each expert in HarbourVest is driven by the belief that strong financial returns their strategy. Furthermore, careful manager selection gives and positive social change can be accomplished in tandem. distinct exposure to leading, or hard to access, external As such, it is committed to integrating ESG considerations private equity managers, providing a broad spread of private into all stages of its investment activity. ESG-related risks are markets expertise. identified and taken into consideration as an integral part of its due diligence process, so that company-specific, broader manager-level, sector-level, and regional risks can be considered when reviewing investment opportunities.

Commitment Phase

HVPE Board and Investment Investment Manager Phase

Mature Growth See pages Phase Phase 24 to 25

CREATING VALUE AT EVERY LEVEL OF OUR BUSINESS

A strong balance sheet is vital in underpinning investment HarbourVest’s global presence and deep network of The multi-manager approach adds value as there is less Value is generated for shareholders through growing NAV into private markets funds given the cash flow profile of longstanding relationships within private markets, as well reliance on one key person to make investment decisions. per share, with the share price broadly tracking this figure these investments. HVPE’s substantial credit facility gives it as its integrated investment platform, have underpinned its The identification and assessment of these managers is key over time. HVPE has delivered 11 consecutive years of the flexibility to continue to invest at times when others may consistent outperformance and helped to position it as to HVPE’s value creation. Furthermore, no single external positive annual NAV returns. New investments are primarily be unable to do so. Informed asset allocation and a steady, a favoured investment partner. HVPE provides access to manager represents more than 3.8% of the underlying funded by distributions from realised investments, enabling considered pace of investment through the cycle help to a broad range of private company investments mostly not portfolio, which helps mitigate investment risk in a complex the cycle to continue over the long term. HVPE has minimise volatility whilst providing broad diversification to available to all investors. These span all phases of the and demanding market. A well-diversified portfolio ensures established itself as one of a few diversified listed private help drive NAV performance over the long term. lifecycle, giving continued exposure to new, developing, that the downside risk arising from any single investment, equity companies with the scale and liquidity to appeal and maturing investments. geography, or strategy is limited, whilst offering the potential to a wide range of investors. for consistent gains over time.

12 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT KEY STRENGTHS AND SOURCES OF VALUE

Active Balance Sheet Management Investment in and Alongside HarbourVest Funds Selectively Diversified Investment Portfolio Profitable Realisations Grow NAV per Share and HVPE maintains a prudent approach to balance sheet HarbourVest, the Investment Manager, is an independent, Research indicates that the dispersion of returns in private Become the Firepower for Future Investments management and invests within a set of defined financial global private markets investment specialist, with over markets investing is greater than that typically observed in HVPE, in effect, provides part-ownership of a broad range ratios with the aim of ensuring that there is sufficient cash 35 years of experience and more than $69 billion of assets public equity portfolios*. In some strategies, notably venture of underlying private companies, spanning early venture to or credit available to meet its commitments, whilst also under management as at 30 June 2020. investing, we observe that a small number of funds deliver more mature businesses. It is the success of these which striving to avoid an excessive build-up of cash on the returns dramatically in excess of the median. This means that drives returns. HVPE is committed to delivering material balance sheet. Investment into Private Companies diversification across multiple funds and investments is critically long-term outperformance in NAV per share as compared HVPE provides a complete private markets solution for important for optimising risk-adjusted returns. By following its with public markets. Ultimately, this is locked in via strong GOVERNANCE REPORT Strategic Asset Allocation (“SAA”) public investors by actively managing the Investment SAA targets, HVPE has built a well-diversified portfolio as realisations, the proceeds of which are then reinvested into HVPE takes a long-term view in building and maintaining Portfolio through four key phases of the private equity shown in the diagram below. new private markets opportunities. its portfolio, working to a set of rolling five-year portfolio cycle: Commitment, Investment, Growth, and Maturity. construction targets aimed at optimising long-term NAV The Company’s approach is to make future commitments Multi-manager Approach Environmental, Social, and Governance (“ESG”) growth. See pages 18 and 19 for more details. to ensure continuous investment through the cycle. Effectively, HVPE provides exposure to approximately Embedded in the HarbourVest Investment Process 30 individual HarbourVest fund managers, each expert in HarbourVest is driven by the belief that strong financial returns their strategy. Furthermore, careful manager selection gives and positive social change can be accomplished in tandem. distinct exposure to leading, or hard to access, external As such, it is committed to integrating ESG considerations private equity managers, providing a broad spread of private into all stages of its investment activity. ESG-related risks are markets expertise. identified and taken into consideration as an integral part of its due diligence process, so that company-specific, broader

manager-level, sector-level, and regional risks can be INTERIM FINANCIAL STATEMENTS considered when reviewing investment opportunities.

* Source: Cambridge Associates, 2020. ESG considerations apply across all investment activity

Diversification Further directly driven diversification by investment within the strategy portfolio

Realisations and shareholder returns SUPPLEMENTARY

by stage by geography by strategy by phase/ by industry by currency vintage See pages 18 to 19

Returns from investment realisations reinvested in the portfolio

CREATING VALUE AT EVERY LEVEL OF OUR BUSINESS

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 13 Summary of Net Assets

31 July 31 January 2020 2020 Investment Portfolio $2,255.6 $2,065.5 Cash and cash equivalents $109.8 $130.6 Drawings on the HVPE credit facility ($120.0) $0.0 Net other assets/liabilities $5.4 $6.6 NAV $2,250.8 $2,202.7 NAV per share ($) $28.18 $27.58 FX rate 1.3085 1.3206 NAV per share (£) £21.54 £20.88 Cash + cash equivalents + available credit facility $589.8 $730.6

14 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 The Private Equity Cycle

Six Months 12 Months STRATEGIC REPORT Ended Ended 31 July 31 January 2020 2020 1. Commitments New commitments to HarbourVest funds $87.8 $570.0 Investment Pipeline – – Allocated $1,394.7 $1,285.3 Unallocated $287.0 $521.7 GOVERNANCE REPORT Total Investment Pipeline $1,681.7 $1,8 07.0 2. Cash Invested Invested in HarbourVest funds $214.2 $324.2 % of average Investment Pipeline1 12.3% 19.2% 3. Growth Investment Portfolio (beginning) $2,065.5 $1,760.2 Cash invested $214.2 $324.2 Investment Portfolio growth $54.6 $289.3 Distributions received ($78.7) ($308.2) INTERIM FINANCIAL STATEMENTS Investment Portfolio (end) $2,255.6 $2,065.5 4. Distributions Received Cash received from HarbourVest funds $78.7 $308.2 % of average Investment Portfolio2 3.6% 16.1%

1 Percentage of average Investment Pipeline (31 January 2020 and 31 July 2020). 2 Percentage of average Investment Portfolio (31 January 2020 and 31 July 2020). SUPPLEMENTARY

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 15 Managing the Balance Sheet

MANAGING THE BALANCE SHEET 3. Rolling Coverage Ratio Effective and prudent balance sheet management is critical HVPE’s Investment Manager uses this third specific metric when running a closed-ended vehicle investing into to provide greater insight into the Company’s balance a portfolio of private market funds with varying cash flow sheet position and a more relevant comparison with the profiles. This is particularly true for a company such as Company’s peer group. This final measure reflects the sum HVPE which maintains a large pipeline of unfunded of cash, the available credit facility, and the distributions commitments (the “Investment Pipeline”), i.e. the portion expected during the current year, taken as a percentage of of capital pledged to an underlying fund, but not yet drawn the forecast cash investment in HarbourVest funds over the down for investments. A full overview of HVPE’s credit current year plus the next two years. The latter is based on facility, approach to managing its balance sheet and steps actual commitments made, plus those currently foreseen it takes to ensure that the Company is sufficiently resourced for the next three years. In considering forecast investments in preparation for periods of significant market stress can be over a three-year period rather than the total Investment found in the Company’s 2020 Annual Report and Accounts Pipeline, this calculation enables a more useful comparison on pages 26 to 29. of HVPE’s coverage ratio relative to its peers. This ratio has decreased from 75% at 31 January 2020 to 63% at 31 July BALANCE SHEET RATIOS 2020. This is due to a downward adjustment to the current Commitment Ratios year’s estimated realisations and a reduction in the The Board and the Investment Manager refer to three key Company’s cash balance. ratios when assessing the Company’s commitment levels: Total Commitment Ratio 1. Total Commitment Ratio (“TCR”) (Total exposure to private markets investments as The TCR provides a view of total exposure to private markets a percentage of NAV) investments as a percentage of NAV. As such, this takes the sum of the current Investment Portfolio and the Investment Investment Portfolio + Investment Pipeline $3,937.4m Pipeline as the numerator. The level of the TCR is a key Divided by the NAV $2,250.8m determinant of the Company’s total commitment capacity 175% (176% at 31 January 2020) for new HarbourVest funds and co‑investments within a given time period. This ratio has decreased slightly from Commitment Coverage Ratio 176% at 31 January 2020 to 175% at 31 July 2020, resulting (Short-term liquidity as a percentage of total from an increase in NAV and a reduction in the Investment Pipeline) Investment Pipeline. Cash + available credit facility $589.8m 2. Commitment Coverage Ratio Divided by the Investment Pipeline $1,681.7m HVPE and many other listed private equity firms on the London Stock Exchange (the “peer group”) use this metric 35% (40% at 31 January 2020) as a measure of balance sheet risk. This ratio is calculated by taking the sum of cash and available credit, and dividing Rolling Coverage Ratio it by the total Investment Pipeline. (A measure of medium-term commitment coverage)

The nature of HVPE’s structure, whereby it commits to Cash + available credit facility (total $589.8m) + HarbourVest funds, which in turn invest in private equity current year estimated distributions ($207.3m) $797.1m managers, means that it typically takes longer for Divided by the next three years’ commitments to be drawn down compared with other listed estimated investments $1,264.6m private equity funds. As a result, to remain fully invested, it 63% (75% at 31 January 2020) has to maintain a larger pipeline of unfunded commitments. This means that HVPE’s Commitment Coverage Ratio may In the short to medium term, in light of COVID-19 appear relatively low in comparison with other similar firms. developments, these ratios may deviate from their longer- This ratio has declined from 40% at 31 January 2020 to 35% term ranges. The most recent ratios, at 31 October 2020, at 31 July 2020, resulting from the move to a marginally can be found within HVPE’s latest monthly factsheet on its negative net cash position. website www.hvpe.com.

16 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 Managing Costs

TOTAL EXPENSE RATIO (“TER”) Finally, performance fees are charged on secondary STRATEGIC REPORT HVPE’s TER reflects the total cost incurred by the Company investments and direct co-investments. In total, this in assembling and maintaining its portfolio of HarbourVest accounted for (0.06%) of average NAV in the six months funds and co-investments. The figure is broken down into to 31 July 2020 (six months to 31 July 2019: 0.56%). four distinct categories of expense. The performance fee figure varies from period to period and is driven by the performance achieved by the relevant Firstly, there is the cost of running the Company in its HarbourVest funds. Growth during the period was primarily own right, encompassing items such as maintenance of driven by primary investments and secondary investments the Facility, Board fees and expenses, professional fees, held through the Secondary Overflow Funds, both of which marketing, financial reporting, dedicated team from the do not incur performance fees. The unrealised losses GOVERNANCE REPORT Investment Manager, and compliance costs. These costs, generated by some of the direct and secondary funds in the totalling 0.29% of average NAV in the six months to 31 July period led to a reversal of previous allocations, resulting in 2020 (six months to 31 July 2019: 0.31%), are categorised as a negative performance fee for HVPE overall. This is shown recurring operating expenses as shown in the first line of the on the chart on page 5 as a positive contributor to NAV per table below. share, adding $0.01 over the six months to 31 July 2020. Secondly, operating costs relating to the HarbourVest funds Together, these four cost components add up to give a TER, amounted to a further 0.08% of average NAV in the net of interest income (0.01%), of 0.74% for the six months six-month period (six months to 31 July 2019: 0.14%). to 31 July 2020. This reflects the cost of providing a fully Thirdly, HVPE pays management fees to HarbourVest with comprehensive private equity investment programme. It is respect to the funds in which it invests, and also for the important to note that, while the operating expenses and INTERIM FINANCIAL STATEMENTS secondary co-investment in Conversus1 made alongside the management fees do not vary greatly from one year to the HarbourVest funds. The total of all management fees the next, the performance fee figure will vary significantly in the six months to 31 July 2020 was equivalent to 0.44% depending on the returns delivered by the portfolio of eligible of average NAV (six months to 31 July 2019: 0.42%). underlying HarbourVest funds. The TER for the six months to 31 July 2020 of 0.74% was 0.64% lower than the same period in the prior year (1.38%) owing to a significantly decreased, and net negative, performance fee element.

Six Months to 12 Months to Six Months to 31 July 31 January 31 July 2020 2020 2019 Operating expenses2 0.29% 0.58% 0.31%

HarbourVest fund operating expenses3 0.08% 0.29% 0.14% SUPPLEMENTARY Management fees4 0.44% 0.86% 0.42% Operating expense ratio 0.81% 1.73% 0.87% Interest income5 (0.01%) (0.10%) (0.05%) Net operating expense ratio 0.80% 1.63% 0.82% Performance fees6 (0.06%) 0.98% 0.56% Total net expense ratio7 0.74% 2.61% 1.38%

1 "HVPE Charlotte Co-Investment L.P." in the Unaudited Condensed Interim Schedule of Investments. 2 Operating expenses includes total expenses shown on the face of the Unaudited Condensed Interim Consolidated Statement of Operations, excluding management fees (from the secondary co-investments) which are included in the management fees in this table. 3 HVPE’s share of fund-level operating expenses (professional fees and organisational costs) which are included in realised and unrealised gains (losses) on investments in the Unaudited Condensed Interim Consolidated Statement of Operations. 4 This includes fund-level management fees payable to HarbourVest which are included in realised and unrealised gains (losses) on investments in the Unaudited Condensed Interim Consolidated Statement of Operations, together with the management fees relating to secondary co-investments noted in 2 above. 5 This is shown as interest from cash and equivalents on the face of the Unaudited Condensed Interim Consolidated Statement of Operations. 6 This includes fund-level performance fees payable to HarbourVest which are included in realised and unrealised gains (losses) on investments in the Unaudited Condensed Interim Consolidated Statement of Operations. 7 TERs are calculated using the average NAV over the respective periods ($2,226.7 million in the six months ended 31 July 2020; $2,063.3 million in the 12 months ended 31 January 2020; and $1,992.1 million in the six months ended 31 July 2019).

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 17 Managing the Portfolio Strategic Asset Allocation and Diversification

HVPE PORTFOLIO CONSTRUCTION TARGETS VS ACTUAL DIVERSIFICATION New commitments to 11 HarbourVest funds are made 10 33 with reference to HVPE’s 30 agreed Strategic Asset Allocation STAGE targets, reviewed annually Stage The breakdown by stage is unchanged from the figures reported at by the Board. 31 January 2020. Buyout exposure remains at 56%, which is currently 4% 60 underweight its target level. Venture and Growth Equity remained at 33%, STRATEGIC ASSET ALLOCATION TARGETS staying above its target level largely due to strong unrealised gains. 56 HVPE takes a long-term view in building and maintaining its Mezzanine and Real Assets held steady at 11%. private markets programme. The Board and the Investment Target % Actual % Manager have agreed upon a set of rolling five-year portfolio Buyout 60% Buyout 56% construction targets (“Strategic Asset Allocation” or “SAA”), Venture and Venture and Growth Equity 30% Growth Equity 33% defined with reference to NAV by investment stage, Mezzanine Mezzanine geography, and strategy. These reflect the Investment Real Assets 10% Real Assets 11% Manager’s and the Board’s perspective on the best means of optimising long-term NAV growth. These targets are 16 3 reviewed annually and were last revised in November 2019. 5 17 ANNUAL COMMITMENT PLAN PROCESS In November each year, the HVPE Board approves a plan Geography 22 GEOGRAPHY for making new commitments to HarbourVest funds over the The composition of the portfolio by geography has marginally shifted 18 subsequent 12-month period. This plan is prepared by the since 31 January 2020. The US at 59% (56% at 31 January 2020), Investment Manager. The total commitment amount for the has moved closer to the target level of 60% as a result of larger net year is informed by the Investment Manager’s Base case investments into US assets relative to other geographies. Europe reduced

forecast for cash flows and investment returns, while the 60 by one percentage point moving closer to its target. HVPE’s allocation to breakdown by fund is decided with reference to the agreed 59 Rest of World is now two percentage points below its target, as it reduced SAA targets mentioned above. Once approved by the from 5% to 3% at 31 July 2020. Asia Pacific was unchanged over Board, the commitment plan is executed in such a way as Target % Actual % the period. to maximise the benefit of any early-closing fee discounts US 60% US 59% Europe 18% Europe 22% available on the selected HarbourVest funds, whilst also Asia Paciﬁc 17% Asia Paciﬁc 16% metering the pace of commitments in line with a set of Rest of World 5% Rest of World 3% agreed balance sheet ratios. The next commitment plan review is scheduled to take place in November 2021. 20 20 HVPE has built a well-diversified, global portfolio of private equity assets at various stages of maturity. The portfolio is carefully selected with the aim of optimising value growth STRATEGY Strategy 33 30 over the long term. As at 31 July 2020, the top 100 The portfolio construction in respect of strategy has also shifted slightly. companies represented 36.7% of the Investment Portfolio Primary, core to HVPE’s strategy, ended the reporting period at 47%, by value ($827.9 million) and the top 1,000 represented moving 1% closer to its target level of 50%. While this current exposure 85.9% ($1,938.6 million). Diversification is essential to remains underweight the target, the Investment Pipeline is weighted towards Primary funds and should help move the strategy towards its achieving consistently strong returns from the asset class, 50 as the various sub-categories within private markets tend 47 target over the medium to longer term. By contrast Secondary exposure, to perform at their best at different stages in the economic as a proportion of the Investment Portfolio, decreased over the period Target % Actual % and is now 1% closer to its new target of 30%. cycle. Furthermore, a well-diversified portfolio ensures that Primary 50% Primary 47% the downside risk arising from any single investment is Secondary 30% Secondary 33% very limited, whilst still offering the potential for notable Direct 20% Direct 20%

gains resulting from the very best-performing deals.

Careful investment selection, therefore, remains critical.

18 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 AT 31 JULY 2020 OTHER DIVERSIFICATION (BY UNDERLYING PARTNERSHIP LEVEL AS A PERCENTAGE OF NAV) STRATEGIC REPORT

11 10 10 33 30

STAGE PHASE

Stage 39 51 The breakdown by stage is unchanged from the figures reported at

31 January 2020. Buyout exposure remains at 56%, which is currently 4% GOVERNANCE REPORT 60 underweight its target level. Venture and Growth Equity remained at 33%, staying above its target level largely due to strong unrealised gains. 56 Mezzanine and Real Assets held steady at 11%. Target % Actual % Investment 51% Buyout 60% Buyout 56% Growth 39% Venture and Venture and Mature 10% Growth Equity 30% Growth Equity 33% Mezzanine Mezzanine Real Assets 10% Real Assets 11%

3 16 2 11 INTERIM FINANCIAL STATEMENTS 5 17 17 Geography 22 GEOGRAPHY CURRENCY The composition of the portfolio by geography has marginally shifted EXPOSURE 18 since 31 January 2020. The US at 59% (56% at 31 January 2020), has moved closer to the target level of 60% as a result of larger net investments into US assets relative to other geographies. Europe reduced

60 by one percentage point moving closer to its target. HVPE’s allocation to Rest of World is now two percentage points below its target, as it reduced 59 79 from 5% to 3% at 31 July 2020. Asia Pacific was unchanged over Target % Actual % the period. US dollar 79% US 60% US 59% Euro 17% Europe 18% Europe 22% Sterling 2% Asia Paciﬁc 17% Asia Paciﬁc 16% Other 1% Rest of World 5% Rest of World 3% SUPPLEMENTARY Australian $ 1%

20 4 20 5 10 28 Strategy 33 STRATEGY INDUSTRY 30 The portfolio construction in respect of strategy has also shifted slightly. Primary, core to HVPE’s strategy, ended the reporting period at 47%, 12 moving 1% closer to its target level of 50%. While this current exposure remains underweight the target, the Investment Pipeline is weighted 15 towards Primary funds and should help move the strategy towards its 12 50 target over the medium to longer term. By contrast Secondary exposure, 47 14 as a proportion of the Investment Portfolio, decreased over the period Target % Actual % and is now 1% closer to its new target of 30%. Tech & Software 28% Primary 50% Primary 47% Consumer 15% Secondary 30% Secondary 33% Medical & Biotech 14% Direct 20% Direct 20% Business Services & Other 12%

Financial 12%

Industrial & Transport 10% Media & Telecom 5% Energy & Cleantech 4%

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 19 Principal Risks and Uncertainties

RISK FACTORS AND INTERNAL CONTROLS Audit and Risk Committee. At the start of the period under The Board is responsible for the Company’s risk review, the Board had identified 12 main risks which have management and internal control systems and actively a higher probability and a significant potential impact on monitors the risks faced by the Company, taking steps performance, strategy, reputation, or operations (Category to mitigate and minimise these where possible. A risks). Of these, the five risks identified below were considered the principal risks faced by the Company where RISK APPETITE the combination of probability and impact was assessed as The Board’s investment risk appetite is consistent with an being most significant. The Board also considered that there over-commitment policy (as explained on page 50 of the were 20 existing or emerging risks (Category B risks), which 2020 Annual Report and Accounts) that allows balanced, are monitored on a watch list. regular investment through economic and investment cycles whilst ensuring that the Company has access to sufficient As the COVID-19 pandemic took hold, the Board and the funding for any potential negative cash flow situations, Audit and Risk Committee considered the impact that the including under an extreme downside scenario. At the same situation would have on the Company’s business and its time, the funding available to the Company by way of cash service providers. As a result, the Board has elevated risks balances and lending facilities is managed to ensure that relating to the Company’s loan facility, Key Persons and its cost, by way of interest, facility fees or cash drag, is Valuation from Category B to Category A, and downgraded reasonable. When considering other risks, the Board’s risk risks relating to Fund Expenses and MiFID II from Category appetite is effectively governed by a cost benefit analysis A to Category B. Due to the material impact that the when assessing mitigation measures. pandemic has had and will have on society and the economy, and in turn, the Company, the principal risks PRINCIPAL RISKS below are considered through the lens of COVID-19. As recommended by the Audit and Risk Committee, the The Directors, as stated in the “Statement of Directors’ Directors have adopted a risk management framework to Responsibilities in Respect of the Semi-Annual Report govern how the Board identifies existing and emerging risks, and Accounts” on page 35, believe to the best of their determines risk appetite, identifies mitigation and controls, knowledge risks set out below also meet the Disclosure assesses, monitors and measures risk, and reports on risks. Guidance and Transparency Rules ("DTR") requirements. The Board reviews risks at least twice a year and receives deep-dive reports on specific risks as recommended by the

RISK DESCRIPTION MITIGATION WITH CURRENT COVID-19 COMMENT

Balance The Company’s balance sheet strategy and its The Company has a credit facility of size and tenor Sheet Risks policy for the utilisation of leverage are described that is sufficient for modelled downside scenarios. on page 27 of the Company’s 2020 Annual The Board has put a monitoring programme in Report. The Company continues to maintain an place, determined with reference to portfolio over-commitment strategy and may draw on its models, in order to mitigate against credit facility to bridge periods of negative cash the requirement to sell assets at a discount flow when capital calls on investments are greater during periods of NAV decline. The monitoring than distributions. The level of potential borrowing programme also considers the level of debt at the available under the credit facility could be HarbourVest fund level which is factored into the negatively affected by declining NAVs. In a period credit facility loan-to-value ratio covenants. Both of declining NAVs, reduced realisations, and rapid the Board and the Investment Manager will substantial cash calls, the Company’s net leverage continue to monitor these metrics actively as the ratio could increase beyond an appropriate level, COVID-19 pandemic progresses and will take resulting in a need to sell assets. A reduction in the appropriate action as required, such as pausing availability or utilisation of bridging debt at the further commitments, to attempt to mitigate these HarbourVest fund-level, or accelerated repayment risks. Please also see the Going Concern and thereof, could result in an increase in capital calls Viability Statement in the Company’s 2020 Annual to a level in excess of modelled scenarios. Report and Accounts for information on scenarios that are considered by the Board on an ongoing basis. See also page 34 of this report for the updated statement regarding Going Concern.

20 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 RISK DESCRIPTION MITIGATION WITH CURRENT COVID-19 COMMENT

Popularity of Investor sentiment may change towards the Listed Following the onset of the COVID-19 pandemic, Listed Private Private Equity sector, resulting in a further there were significant falls in public markets but Equity Sector widening of the Company’s share price discount these have, on the whole, been reversed. As a relative to NAV per share. consequence, and in common with the majority of its peers, HVPE’s discount to NAV initially

widened. This was partly due to negative STRATEGIC REPORT sentiment regarding equities in general but also because the exact level and timing of the impact that COVID-19 would have on either the global economy as a whole or private companies in particular was not yet known. Subsequently, as public markets have partially recovered, the discounts relating to listed private equity companies have started to narrow.

Public Market The Company makes venture capital and buyout Normally the Company’s exposure to individual

Risks investments in companies where operating public markets is partially mitigated by the GOVERNANCE REPORT performance is affected by the broader economic geographical diversification of the portfolio. While environment within the countries in which those COVID-19 is having an impact on the global companies carry out business. While these economy, the severity appears to vary by companies are generally privately owned, their geography and industry sector. HVPE’s diversified valuations are, in most cases, influenced by public portfolio has helped to mitigate the effect on the market comparables. In addition, approximately Company’s NAV per share. 10% of the Company’s portfolio is made up of In previous downturns private market valuations publicly traded securities whose values increase have not been impacted as much as public markets or decrease in response to market movements. and there has been a dampened effect on volatility. When global public markets decline or the Public markets have returned to pre-COVID-19 economic situation deteriorates, the Company’s levels but more uncertainty lies ahead as

NAV is usually negatively affected. many countries now face a second wave INTERIM FINANCIAL STATEMENTS of the pandemic.

Performance The Company is dependent on its Investment As at the date of this report, HarbourVest is of Manager and HarbourVest’s investment continuing to operate flexible working HarbourVest professionals. With the exception of eight arrangements with the majority of staff working Partners co-investments, all of the Company’s assets, from home. HarbourVest is confident that its save for cash balances and short-term liquid business continuity processes are robust and investments, are invested in HarbourVest funds. that they can continue to provide services Additionally, HarbourVest employees play key to the Company to the usual high standard. roles in the operation and control of the Company. The Board is satisfied that contingency The incapacity, departure, or reassignment of arrangements regarding the key team at some or all of HarbourVest’s professionals could HarbourVest responsible for HVPE are sufficient. prevent the Company from achieving its investment objectives.

Trading Public market movements over the period under Since the Company’s shares trade on the Main Liquidity review have increased volatility in HVPE’s share Market of the London Stock Exchange, this SUPPLEMENTARY and Price price, and it is currently trading at a price which provides increased liquidity and accessibility to represents a discount to its NAV. Any ongoing a wider variety range of potential shareholders. discount to NAV that is materially different to In addition, the Board continues to monitor the the Company’s peer group has the potential to discount to NAV and will consider appropriate damage the Company’s reputation and to cause solutions to address any ongoing or substantial shareholder dissatisfaction. discount to NAV. The Board has overseen the During periods of short-term market stress, supply allocation of additional investor relations resource and demand for shares can be impacted. If demand in recent years and the Company has attracted decreases or supply increases disproportionately, new shareholders. the bid/offer spread could widen, resulting in less The HVPE Board through the activities of the attractive pricing for investors seeking to buy or sell Investment Manager, HarbourVest Partners, seeks shares in the short term. to drive improved liquidity over the medium to long The five largest shareholders represent term by promoting the Company’s shares to a approximately 46% of the Company’s shares broad range of prospective investors. This has in issue. This may contribute to a lack of liquidity continued throughout the COVID-19 pandemic. and widening discount. Also, in the event that a substantial shareholder chooses to exit the share register, this may have an effect on the Company’s share price and consequently the discount to NAV.

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 21 About HarbourVest

HarbourVest is an independent, global private markets asset manager with over 35 years of experience and more than $69 billion in assets under management.1

35+Years of market experience 30+HarbourVest fund managers $69bn+Assets under management

145+Investment professionals 600+Employees globally 10Global offices

OVERVIEW fund managers are often oversubscribed when they raise HarbourVest focuses exclusively on private markets. new funds, making these funds difficult to access for many The firm’s powerful global platform (as outlined on page 37 investors. The longevity and stability of the HarbourVest of the Company’s 2020 Annual Report and Accounts) team has enabled the firm to cultivate relationships with offers clients investment opportunities through primary many of the top-tier and exclusive fund managers, fund investments, secondary investments, and direct positioning HarbourVest as both a preferred prospective co-investments in commingled funds or separately managed investor and a favoured investment partner. accounts. The firm currently has approximately $69 billion1 in assets under management across the US, Europe, Asia RESPONSIBLE INVESTING AND ESG Pacific, and other emerging markets. HarbourVest has deep As a signatory to the Principles for Responsible Investment investment experience and dedicated, on-the-ground teams (“PRI”), HarbourVest considers ESG factors in its investment in key private markets around the world. It has over 600 evaluation and selection process. This added screen employees, including more than 145 investment demonstrates its commitment to continually improve the professionals1, across its Beijing, Bogotá, Boston, Dublin, investment process for the benefit of clients. Hong Kong, London, Seoul, Tel Aviv, Tokyo, and HarbourVest is committed to delivering compelling financial Toronto offices. results, adhering to its ESG values, and being a responsible caretaker of the capital it is entrusted to manage. As a PRI LEADERSHIP signatory, HarbourVest integrates ESG considerations into HarbourVest has shown leadership in private markets all stages of its investment activity, including its primary across the globe, forming one of the first fund-of-funds, fund, secondary investment, and direct co-investment due purchasing some of the first secondary positions, backing diligence processes. ESG-related risks are identified and developing companies, and pioneering new markets. taken into consideration as an integral part of its due diligence process, so that company-specific, broader DEPTH OF EXPERIENCE manager-level, sector-level, and regional risks can be The 55 Managing Directors of HarbourVest have been with considered when reviewing investment opportunities. the firm for an average of 12 years.1 HarbourVest believes the experience and continuity of investment personnel provides a valuable historical base of knowledge. Additionally, many of the most sought-after underlying

1 Figures as at 30 June 2020.

22 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 Our Value Creation Cycle STRATEGIC REPORT Investing in private markets requires a considered, long-term approach. HVPE provides a complete private equity solution for public investors by managing the portfolio through four phases of the private equity cycle: Commitment, Investment, Growth, and Maturity. Details of each of these phases can be found on page 39 of the Company’s 2020 Annual Report and Accounts. GOVERNANCE REPORT

COMMITMENT PHASE The Investment Manager and the Board consider a number of factors before new commitments are made:

/ Current unfunded commitment levels / The economic environment (“Investment Pipeline”) / The available credit facility / Anticipated rate of investment (capital calls) / Commitment and coverage ratios / Future expected distributions (proceeds receivable) / Existing portfolio and strategy INTERIM FINANCIAL STATEMENTS Read more on page 24

INVESTMENT PHASE The HarbourVest funds invest HVPE’s commitments over a period of approximately four years.

Read more page 25 SUPPLEMENTARY

The phases

MATURE PHASE GROWTH PHASE Within approximately seven to During years five to nine, most ten years, managers are typically HarbourVest funds are fully invested, and realising investments. managers are actively driving growth. The majority of value accretion typically Read more takes place during this phase. page 24 Read more page 25

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 23 The Phases

The Commitment Phase

Investment Pipeline and ALLOCATED AND UNALLOCATED / “Allocated” – Commitments which Age of Allocated Pipeline INVESTMENT PIPELINE have been allocated by HarbourVest 1-3 years 60% In order to reflect the differences funds to underlying investments. in expected drawdown periods / “Unallocated” – Commitments 4-6 years 14% appropriately, the Company which have yet to be allocated by divides its Investment Pipeline of 7-10 years 5% HarbourVest funds to underlying commitments into two categories: investments, and therefore cannot >10 years 4% be drawn down in the short term.

Unallocated 17%

Note: All of the Company’s commitments to HarbourVest direct co-investment Commitments Made to and secondary funds are classified as HarbourVest Funds in the “allocated” commitments because their Six Months to 31 July 2020 drawdown profiles are closer to those of third-party funds. Dover Street X (Global secondary fund) $50.0 million Secondary Overflow IV (Secondary transaction) $37.8 million Total: $87.8m (Six Months to 31 July 2019: $315.0 million)

The Mature Phase

In the six months to 31 July 2020, TOP TEN COMPANY REALISATIONS – 1 FEBRUARY TO 31 JULY 2020 HVPE received proceeds of HVPE $78.7 million from HarbourVest Distributed funds (see Unaudited Condensed Company Description Value ($m)1 Interim Consolidated Statements 1 TeamViewer Global remote connectivity platform $6.0 of Cash Flows on page 40). 2 CrowdStrike Holdings Provider of data security services $5.6 This reflects a slowdown in 3 Knowlton Development Consumer products contract $4.3 exit activity over the reporting Corporation manufacturer period as a result of COVID-19 4 BMC Software Technology and digital services for $4.0 uncertainty. The top ten company businesses distributions are outlined in the 5 Lytx Vehicle risk management software $3.6 corresponding table. 6 Saba Software Talent management software solutions $3.5 2020 2019 $m $m 7 Uber Technologies Mobile marketplace for personal $3.2 transportation Total distributions 8 Oravel Stays Private Marketplace for economy hotels and $3.1 received from guest houses in India HarbourVest 9 Slack Technologies Collaboration software for businesses $3.0 funds in the 10 Personal & Informatik Payroll and human capital $2.9 six months to management software 31 July $78.7 $138.9 1 HVPE realised value represents HVPE’s share of primary investment, secondary investment, and direct co-investment realisations received during the financial year. Past performance is not necessarily indicative of future returns.

24 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 The Investment Phase

In the six months to 31 July 2020, TOP TEN PRIMARY MANAGERS BY AMOUNT INVESTED ($M) HVPE invested $214.2 million into Manager Strategy Geography ($m) HarbourVest funds (see Unaudited STRATEGIC REPORT 1 ABRY Partners Buyout US $4.1 Condensed Interim Consolidated Statements of Cash Flows on page 40). 2 Index Ventures Venture Europe $4.1 Looking through to the underlying 3 Summit Partners Venture US $3.9 portfolio, the majority of investments 4 Hellman & Friedman Buyout US $3.3 were into primaries at 76%, followed by 5 Sun Capital Partners Buyout US $2.7 direct co-investments at 14%, and 6 Thoma Bravo Buyout US $2.7 secondaries at 10%. The most active 7 Insight Venture Management Venture US $2.6 managers were weighted towards 8 GTCR Buyout US $2.5 buyout strategies, as highlighted in the GOVERNANCE REPORT table on the right. 9 Windjammer Capital Investors Buyout US $2.2 2020 2019 10 Nautic Partners Buyout US $2.2 $m $m Total invested into HarbourVest funds in the six months to 31 July $214.2 $202.4

The Growth Phase INTERIM FINANCIAL STATEMENTS

In the six months to 31 July 2020, the Investment Portfolio grew by $54.6 million (see Unaudited Condensed Interim Consolidated Statements of Operations on page 38). The major growth drivers in the portfolio are summarised in the Investment Manager’s Report on page 4. Movements by stage, geography, and strategy are outlined below (% gain over the six months adjusted for new investments over the period) with corresponding commentary.

Buyout 0.9% US 3.5% Primary 4.4%

Venture and Growth Equity 8.1% Europe 3.6% Secondary 1.7%

(3.2%) Other Asia Paciﬁc 2.2% Direct Co-investment 0.6%

(12.3%) Rest of World

Growth by Stage Growth by Geography Growth by Strategy

The Venture and Growth Equity stage Europe (22% of Investment Portfolio The Primary strategy (47% of SUPPLEMENTARY (33% of Investment Portfolio NAV) NAV) was the strongest geographical Investment Portfolio NAV) was the delivered the largest percentage gain region, with a 3.6% gain over the six strongest performer over the six over the reporting period, with an months to 31 July 2020, driven largely months to 31 July 2020, growing increase of 8.1%. This gain reflects by European venture investments 4.4%. Growth was driven mainly both strong unrealised performance, which returned 16.1%. The US (59% by strong venture performance in as well as realisations in technology of Investment Portfolio NAV) followed Europe and the US, which offset and healthcare companies operating closely with a return of 3.5%. Returns declines in Rest of World. This was in the venture space. Buyouts (56% of in this region were largely driven by followed by marginal growth of 1.7% Investment Portfolio NAV) followed venture investments which returned from Secondary investments and with a 0.9% gain whilst Other, which 7.4%. Rest of World (“RoW”), which 0.6% from Direct Co-investments comprises predominantly real assets captures companies operating (20% of Investment Portfolio NAV). and mezzanine investments, declined in countries outside of the three main 3.2% over the period mainly as a geographic regions, declined 12.3% result of lower valuations for real due to relatively equal declines across assets investments. both buyout and venture investments. However, it should be noted that this analysis is unweighted and RoW reflects only 3% of Investment Portfolio NAV.

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 25 Manager Spotlight

Top ten managers across all strategies at 31 July 2020 held within HVPE’s underlying portfolio.

1 CORSAIR CAPITAL 2 IDG CAPITAL PARTNERS INFRASTRUCTURE PARTNERS

Investment across key infrastructure sub-sectors, with Venture investment in companies located in China, with a focus on high-quality transportation and logistics assets. a focus on technology-enabled consumer, enterprise Founded in 2015, Corsair’s current portfolio includes solutions, and artificial intelligence sectors. IDG has a Spanish toll road and privately-held airport developer. a strong and consistent investment track record, This is held within the HVPE-seeded real assets vehicle. evidenced by its funding of Chinese technology firms Baidu and Alibaba. 3.8% $85.4m 3.2% $72.2m % of Investment Portfolio at Investment value at % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020 31 July 2020 31 July 2020

3 INSIGHT PARTNERS 4 INDEX VENTURES

Growth equity investment primarily in companies located Venture and growth equity investment primarily in in the US, with a focus on software-related and Internet companies located in Europe and the US, with a focus on sectors. Insight has a distinct sector focus, and consistent the disruptive technology and online marketplace sectors. strong results; its portfolio companies include SolarWinds. Index has a strong investment track record; its portfolio companies include Datadog and Slack. 2.7% $61.4m 2.3% $51.2m % of Investment Portfolio at Investment value at % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020 31 July 2020 31 July 2020

26 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT

6 COMPASS 5 THOMA BRAVO PARTNERS

Primarily buyout investment in mid-market companies Secondary buyout investment in mid-to-large transaction in the US, with a focus on the software and technology sizes, primarily in Europe, and within multiple sectors. sectors. Thoma Bravo has a demonstrated capability Compass Partners is a specialist investor in complex in unlocking value through various investment types with or special situations; its portfolio companies include deep expertise from its focused sector approach. Rodenstock and Infinitas Learning. GOVERNANCE REPORT 2.2% $49.3m 1.5% $34.9m % of Investment Portfolio at Investment value at % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020 31 July 2020 31 July 2020

7 DCM 8 BATTERY VENTURES

Venture investments in companies located in Asia and the Venture and growth equity investment in technology- INTERIM FINANCIAL STATEMENTS US, with a focus on mobile, consumer-technology, and focused companies. Battery Ventures is a sector specialist software & service sectors. DCM has a global footprint; and has demonstrated the ability to unlock value through its portfolio companies include SoFi and Lime. multiple cycles; its portfolio companies include Braze. 1.4% $30.7m 1.3% $28.9m % of Investment Portfolio at Investment value at % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020 31 July 2020 31 July 2020

9 OAKTREE CAPITAL MANAGEMENT 10 HELLMAN & FRIEDMAN SUPPLEMENTARY Alternative investment with an expertise in credit Large buyout investment in companies primarily located strategies. Oaktree Capital has an established track record in the US, with a broad sector focus. Hellman & Friedman and is active across the capital structure through different has demonstrated strong performance across multiple structure and vehicle types. economic cycles. 1.2% $26.8m 1.2% $26.6m % of Investment Portfolio at Investment value at % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020 31 July 2020 31 July 2020

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 27 Top Ten Direct Companies

Top ten disclosable1 companies at 31 July 2020 held within HVPE’s direct co-investment portfolio.

PRESTON HOLLOW CAPITAL Stage: Buyout Location: US

Speciality Finance Platform Speciality municipal finance merchant bank focused on niche underwriting and opportunistic investing. HarbourVest co-invested with Stone Point Capital, a finance-focused GP with deep experience in the credit underwriting arena. Since initial investment, Preston Hollow Capital has demonstrated strong performance. The Investment Manager likes the investment as the company has an impressive management team track record and operates within a large, fragmented municipal bond market which presents various business opportunities. 1.1% $25.8m % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020

KNOWLTON DEVELOPMENT CORPORATION (“KDC”) Stage: Buyout Location: Canada

Personal Beauty Formulator and Manufacturer Leading contract manufacturer of personal care and beauty products providing both custom formulation and packaging solutions and services. HarbourVest invested alongside Cornell Capital in December 2018 and was Cornell’s sole co-underwriter. Since initial investment, KDC has performed strongly as personal beauty continues to benefit from various industry tailwinds. The Investment Manager likes the investment as KDC benefits from supportive consumer/retail trends, has an attractive financial profile, and has multiple upside levers to create value. 0.7% $16.5m % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020

1 Some direct holdings cannot be disclosed due to confidentiality agreements in place.

28 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT TEAMVIEWER Stage: Buyout Location: Germany

Remote Access Software Leading provider of secure remote control and access software to virtually connect with computers, mobile devices, and "Internet of Things" devices. HarbourVest invested in the Company alongside Permira Advisers in July 2014. TeamViewer’s software is used for remote IT support and administration, and remote access from GOVERNANCE REPORT home offices and mobile devices. Since the initial investment, the Company has performed well and was listed on the Frankfurt Stock Exchange in a September 2019 IPO. TeamViewer has traded up since its IPO. The Investment Manager likes the investment as it is well positioned to benefit from the acceleration of work from home trends. 0.7% $15.2m

% of Investment Portfolio at Investment value at INTERIM FINANCIAL STATEMENTS 31 July 2020 31 July 2020

SOLARWINDS Stage: Buyout Location: US

IT Management Software Provider of easy to implement, low-cost enterprise-class IT and infrastructure management software to IT professionals. SolarWinds currently has over 250,000 customers worldwide. HarbourVest co-invested with Thoma Bravo, a GP with deep experience of the infrastructure software industry. SolarWinds’ software quickly identifies and addresses IT issues, ensuring maximum network uptime and performance. The Investment SUPPLEMENTARY Manager likes the investment as it offers a service well positioned to benefit from technology-related mega trends within a growing market. 0.6% $14.2m % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 29 Top Ten Direct Companies continued

LYTX Stage: Buyout Location: US

Vehicle Risk Management Products Provider of video safety telematics software and services to commercial fleets. HarbourVest participated in a recapitalisation of the company, securing an allocation of senior preferred and junior preferred equity securities. The Investment Manager likes the investment as the company is a clear market leader in telematics with dominant market share, competitive advantages, and visibility on consistent subscriber growth. 0.6% $13.2m % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020

ALBANY MOLECULAR RESEARCH (“AMRI”) Stage: Buyout Location: US

Pharmaceutical Research and Manufacturing Provider of outsourced contract development and manufacturing services for the pharmaceutical industry. HarbourVest co-invested with GTCR, a GP with a strong track record of investing in pharmaceutical businesses. Since initial investment, AMRI’s management team has acquired companies in the highly fragmented contract development and manufacturing organisation industry to continue to drive growth. The Investment Manager likes the investment as it is well positioned to benefit from several industry mega trends such as an ageing population, growing healthcare expenditures, and increased outsourcing. 0.6% $12.7m % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020

30 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT H-LINE SHIPPING Stage: Buyout Location: South Korea

Marine Bulk Shipping Shipping company specialising in dry bulk and liquefied natural gas delivery under long-term contracts. HarbourVest co-invested with Hahn & Co, a private equity investment firm focused on making corporate acquisitions in South Korea. H-Line Shipping, headquartered in South Korea, currently has a total fleet of 50 GOVERNANCE REPORT vessels. The Investment Manager likes the investment as the company’s financial performance has demonstrated stable operating profitability levels, whilst the long-term shipping contracts generate cash flows which provide significant forward visibility. 0.6% $12.7m % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020 INTERIM FINANCIAL STATEMENTS

NEIGHBORLY Stage: Buyout Location: US

Home Repair and Maintenance Service Franchisor Home cleaning, landscaping, plumbing, and handyman services across the US. HarbourVest co-invested with Harvest Partners. The Investment Manager likes the investment as the company operates a recession-resilient business model in a sector with long-term market tailwinds, such as growth of the household services market. It has several actionable levers for growth, including whitespace expansion, international expansion, and bolt-on acquisitions. 0.5% $11.3m SUPPLEMENTARY % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020

HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 31 Top Ten Direct Companies continued

APPRISS Stage: Growth Equity Location: US

Data and Analytics Solutions Provider Provider of data and analytics solutions to commercial and government clients to address public safety, regulatory, and compliance needs. HarbourVest co-invested with Insight Partners, an investor with a significant understanding of the software-related and Internet sectors. The Investment Manager likes the investment as the company has a market-leading position and a strong management team, and the company is well positioned to benefit from the expanding market of reliance on big data and a need for analytics. 0.5% $10.7m % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020

MINISTRY BRANDS Stage: Growth Equity Location: US

Software Provider for Faith-based Organisations Provider of software to more than 55,000 faith-based and member- based organisations in the US. HarbourVest co-invested with Insight Venture Partners, an investor with a significant understanding of the software-related and Internet sectors. The Investment Manager likes Ministry Brands as the company has a market-leading position with scale that allows for further competitive advantages. It also has a unique acquisition platform and operates within a large and growing market. 0.4% $9.9m % of Investment Portfolio at Investment value at 31 July 2020 31 July 2020

32 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 33 Chair of the Audit and Risk Committee Committee Risk and Audit the of Chair and member of the Inside Information, Management and Nomination, Engagement and Service Committees. Provider STEVEN WILDERSPIN STEVEN Independent Non-Executive Director, appointed May 2018 CAROLINA ESPINAL CAROLINA Director, Non-Executive appointed July2019 Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE Member of the Audit and Risk, Nomination, Nomination, Risk, and Audit the of Member and Management Engagement and Service Provider Committees. Chair of the Management Engagement and Service Provider Committee and Member of the Audit and Risk, and Committees. Nomination ANDREW MOORE Independent Non-Executive Director, appointed October 2007 FRANCESCA BARNES Independent Non-Executive Director, appointed April 2017

Member of the Audit and Risk, Nomination, Nomination, Risk, and Audit the of Member and Management Engagement and Service Provider Committees. Chair of the Nomination Committee and and Committee Nomination the of Chair member of the Inside Information and Service and Engagement Management Committees. Provider PETER WILSONPETER Director, Non-Executive appointed May 2013 ALAN HODSON Independent Non-ExecutiveSenior Director, appointed April 2013

EDMOND (“ED”) WARNER OBE WARNER (“ED”) EDMOND Independent Non-Executive Chair, 2019 August appointed Director, Board Directors of Directors’ Report

SEMI-ANNUAL REPORT AND UNAUDITED 2020 Annual Report and Accounts, the Directors primarily CONDENSED INTERIM CONSOLIDATED focused on two scenarios: the Low Base and the Extreme FINANCIAL STATEMENTS Downside. The Low Base was effectively similar to previous A description of the important events that have occurred Pessimistic scenarios; however, the name was updated during the six months ended 31 July 2020 and their impact to reflect the higher degree of focus on the Low Base for on the performance of the Company are given in the planning purposes. Semi-Annual Report and Unaudited Condensed Interim Consolidated Financial Statements (the “Interim Financial Following a more optimistic tracking of the scenarios Statements”) – together the “Semi-Annual Report and than anticipated over the six months to 31 July 2020, Accounts”; specifically the Chair’s Statement and the Investment Manager has completed the annual model the Investment Manager’s Report, alongside the Interim scenario update and reverted to its pre-COVID model Financial Statements, and are incorporated here scenarios (Optimistic, Base, Pessimistic and Extreme by reference. Downside). These have been used to form the basis of the Going Concern as provided below; they are updated to The principal risks and uncertainties facing the Company reflect recent performance and are therefore not directly and how the Company seeks to mitigate them can be found comparable with the scenarios presented in the 2020 on pages 20 to 21. Annual Report and Accounts.

There were no material related party transactions which GOING CONCERN took place in the first six months of the financial year, other The performance of the investments held by the Company than those disclosed in Note 9 to the Interim Financial over the reporting period are described in Note 4 to the Statements. There have been no changes to the related Interim Financial Statements and the outlook for the future is party transactions described in the 2020 Annual Report and described in the Chair’s Statement. The Company’s financial Accounts that could have a material effect on the financial position, its cash flows, and liquidity position are set out position or performance of the Company in the first six within the Semi-Annual Report and Accounts. Details of months of the current financial year. its financial instruments, and its exposures to market This Semi-Annual Report and Accounts has been reviewed risk, liquidity risk, and cash flow risk, are set out in the by the Company’s auditor in accordance with guidance Governance Report on pages 60 and 61 in the Company’s contained in International Standard on Review Engagements 2020 Annual Report and Accounts, and are unchanged. 2410 (UK and Ireland) “Review of Interim Financial In addition, the Board has performed a robust assessment Information Performed by the Independent Auditor of the of the principal risks facing HVPE, along with the Entity” issued by the Auditing Practices Board (“ISRE 2410”). assessment of the Going Concern of the Company for the INTRODUCTION TO THE GOING CONCERN period to 31 December 2021, and believes that there will Since the inception of HVPE, the Directors have relied be no material change in the principal risks of the Company upon model scenarios to manage the Company’s liquidity for the next six months. The latest principal risks and requirements and balance sheet risk more generally. uncertainties can be found on pages 20 to 21. This modelling, typically updated annually in November, As part of this exercise the Board considered the Optimistic, also allows the Directors to evaluate whether the Company Base, Pessimistic and Extreme Downside model scenarios is a Going Concern. While the modelling process has been assuming varying degrees of COVID-19-related portfolio refined over the years, it has provided a consistent approach impact over the period ending 31 December 2021. through which the Directors have been able to provide The assessment primarily focused on the Base and a positive Going Concern assessment, as demonstrated Extreme Downside cases. The Base case was considered through the GFC. Historically the models have assessed a reasonable scenario given the current economic four scenarios: Optimistic, Base, Pessimistic and Extreme environment and possible ongoing impact related to Downside presented by the Investment Manager. The onset COVID-19. While this case was the primary focus of the of COVID-19 and the subsequent portfolio assessment Board in assessing the Going Concern of the Company, undertaken by HarbourVest led the Company to update its the Extreme Downside case was also considered and was models mid-year as described on page 28 of HVPE’s 2020 designed to specifically stress the balance sheet with Annual Report and Accounts. Given the uncertainty at that multiple worst case scenarios all playing out over the period point in the pandemic the Base and Pessimistic scenarios to 31 December 2021. The Board does not believe the were described as High Base and Low Base cases. For the Extreme Downside case is a likely scenario but factors this purpose of assessing the Going Concern and the Viability into the Going Concern assessment. The results of these Statement over one year and five years, respectively, for the model scenarios showed that the Company would be able

34 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 35 Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE the Semi-Annual Report and Accounts have been prepared in accordance with US GAAP and give a true position financial liabilities, assets, the of view fair and and profit or loss of the Company; and the Chair’s Statement, Investment Manager’s Report, and Principal Risks and Uncertainties section include a fair review of the information required by: of the Disclosure(i) 4.2.7R DTR Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of Financial Interim the on impact their and year financial the Statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and (ii) of the 4.2.8R DTR Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial that during entity the performance of the or position period; and any changes in the related party transactions described in the 2020 Annual Report that could do so. / By order of the Board November26 2020 to withstandto the impact of such circumstances should they play out during that period. In the assessment of the Going Concern status of the portfolio activity considered also Board the Company through November 26 to more 2020, specifically validate to projections the compared Board The used. assumptions the for the period from 1 February October 31 2020 to 2020 under the Base case the to actual out-turn during that period, and for reference, the to equivalent period in 2019. Based on the review of actual activity compared model to projections through November 26 to the 2020, Board has able be will Company the that expectation a reasonable to continue in operation and meet its liabilities as they fall due over the period ending December 31 Accordingly, 2021. it continues adopt to the Going Concern basis in the Report Accounts. Semi-Annual and this of preparation RESPONSIBILITIES DIRECTORS’ OF STATEMENT IN RESPECT OF THE SEMI-ANNUAL REPORT AND ACCOUNTS Semi-Annual the preparing for responsible are Directors The Report and Accounts in accordance with applicable law regulations. and The Directors confirm that the to best of their knowledge: / Independent Review Report to HarbourVest Global Private Equity Limited

INTRODUCTION OUR RESPONSIBILITY We have been engaged by HarbourVest Global Private Our responsibility is to express to the Group a conclusion on Equity Limited (the “Company”) and its subsidiaries (together the Interim Financial Statements in the Semi-Annual Report the “Group”) to review the Unaudited Condensed Interim and Accounts based on our review. Consolidated Financial Statements (“Interim Financial Statements”) in the Semi-Annual Report and Accounts for SCOPE OF REVIEW the six months ended 31 July 2020 which comprises the We conducted our review in accordance with ISRE 2410, Unaudited Condensed Interim Consolidated Statements “Review of Interim Financial Information Performed by the of Assets and Liabilities, Unaudited Condensed Interim Independent Auditor of the Entity” issued by the Auditing Consolidated Statements of Operations, Unaudited Practices Board for use in the United Kingdom. A review Condensed Interim Consolidated Statements of Changes of interim financial information consists of making in Net Assets, Unaudited Condensed Interim Consolidated enquiries, primarily of persons responsible for financial Statements of Cash Flows, Unaudited Condensed Interim and accounting matters, and applying analytical and other Consolidated Schedule of Investments and related notes review procedures. A review is substantially less in scope 1 to 11. We have read the other information contained in the than an audit conducted in accordance with International Semi-Annual Report and Accounts and considered whether Standards on Auditing (UK) and consequently does not it contains any apparent misstatements or material enable us to obtain assurance that we would become aware inconsistencies with the information in the Interim of all significant matters that might be identified in an audit. Financial Statements. Accordingly, we do not express an audit opinion.

This report is made solely to the Company in accordance CONCLUSION with guidance contained in International Standard on Based on our review nothing has come to our attention that Review Engagements 2410 (UK and Ireland) (“ISRE 2410”) causes us to believe that the Interim Financial Statements “Review of Interim Financial Information Performed by the in the Semi-Annual Report and Accounts for the six months Independent Auditor of the Entity” issued by the Auditing ended 31 July 2020 are not prepared, in all material Practices Board. To the fullest extent permitted by law, respects, in accordance with US GAAP and the DTR we do not accept or assume responsibility to anyone other of the United Kingdom’s FCA. than the Company, for our work, for this report, or for the Ernst & Young LLP conclusions we have formed. Guernsey, Channel Islands

DIRECTORS’ RESPONSIBILITIES 26 November 2020 The Semi-Annual Report and Accounts is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Semi-Annual Report and Accounts in accordance with the Disclosure Guidance and Transparency Rules (“DTR”) of the United Kingdom’s Financial Conduct Authority (“FCA”). As disclosed in note 2, the Interim Financial Statements have been prepared by applying consistent accounting policies used in the ‘Annual Report and Accounts 2020’ of the Group, which are in accordance with US generally accepted accounting principles (“US GAAP”).

36 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 37 – 2020 $27.58 92,281 (Audited) 1,894,786 1,802,505 8,445,852 31 January31 130,616,160 2,065,519,797 2,202,687,023 2,204,581,809 $2,202,687,023 $2,202,687,023 2020 $28.18 83,971 31 July31 7,778,338 2,319,783 (Unaudited) 109,768,526 122,403,754 120,000,000 2,373,162,211 2,255,615,347 2,250,758,457 $2,250,758,457 $2,250,758,457 Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE Steven Wilderspin Chair of the Audit and Risk Committee Liabilities

Chair Ed Warner NET ASSETS CONSIST OF Shares, unlimited shares authorised, shares 79,862,486 issued and outstanding July at 31 and January 31 2020, no par value ASSETS NET share per Value Asset Net The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements. Financial Consolidated Interim Condensed Unaudited the part of integral an are notes accompanying The The Unaudited Condensed Interim Consolidated Financial Statements on pages 49 were to 37 approved the by Board on 26 November 2020 and were signed on its behalf by: Accounts payable HarbourVest to Advisers (Note 9) L.P. liabilities Total 5) (Note Commitments ASSETS NET and Dollars US In Consolidated Statements of Assets of ConsolidatedStatements January 2020 31 and July 31 At Unaudited Condensed Interim Condensed Unaudited Total assets LIABILITIES Amounts due under the credit facility expenses accrued and payable Accounts ASSETS Investments (Note4) Cash and equivalents Other assets Unaudited Condensed Interim Consolidated Statements of Operations For the Six-month Periods Ended 31 July 2020 and 2019

In US Dollars 31 July 2020 31 July 2019 REALISED AND UNREALISED GAINS (LOSSES) ON INVESTMENTS Net realised gain on investments 14,442,795 68,272,120 Net change in unrealised appreciation on investments 40,196,279 73,453,115 NET GAIN ON INVESTMENTS 54,639,074 141,725,235 INVESTMENT INCOME Interest and dividends from cash and equivalents 339,085 986,969 EXPENSES Non-utilisation fees (Note 6) 2,522,601 2,935,360 Interest expense (Note 6) 1,356,931 16,973 Investment services (Note 3) 1,013,431 956,184 Financing expenses 733,224 769,866 Professional fees 393,794 504,443 Management fees (Note 3) 378,524 378,164 Directors’ fees and expenses (Note 9) 261,450 278,582 Marketing expenses 150,818 155,370 Other expenses 95,952 460,669 Total expenses 6,906,725 6,455,611 NET INVESTMENT LOSS (6,567,640) (5,468,642) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $48,071,434 $136,256,593

The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements.

38 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 39 (5,468,642) 73,453,115 68,272,120 31 July31 2019 136,256,593 1,923,955,651 $2,060,212,244 (6,567,640) 40,196,279 14,442,795 48,071,434 31 July31 2020 2,202,687,023 $2,250,758,457 Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE

NET ASSETS BEGINNING AT OF PERIOD INCREASE IN NET ASSETS FROM OPERATIONS Netrealised gain on investments appreciation unrealised in change Net The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements. Financial Consolidated Interim Condensed Unaudited the part of integral an are notes accompanying The Netinvestment loss Netincrease in net assets resulting from operations in Net Assetsin Net Dollars US In Consolidated Statements of Changes of ConsolidatedStatements 2019 and 2020 July 31 Ended Periods Six-month the For Unaudited Condensed Interim Condensed Unaudited NET ASSETS END AT OF PERIOD Unaudited Condensed Interim Consolidated Statements of Cash Flows For the Six-month Periods Ended 31 July 2020 and 2019

In US Dollars 31 July 2020 31 July 2019 CASH FLOWS FROM OPERATING ACTIVITIES Net increase in net assets resulting from operations 48,071,434 136,256,593 Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: Net realised gain on investments (14,442,795) (68,272,120) Net change in unrealised depreciation (40,196,279) (73,453,115) Contributions to private equity investments (214,156,887) (202,413,602) Distributions from private equity investments 78,700,411 138,913,095 Other 1,176,482 (355,329) Net cash used in operating activities (140,847,634) (69,324,478) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowing on the credit facility 200,000,000 30,000,000 Repayments in respect of the credit facility (80,000,000) (30,000,000) Net change in financing activities 120,000,000 – NET DECREASE IN CASH AND EQUIVALENTS (20,847,634) (69,324,478) CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 130,616,160 156,570,557 CASH AND EQUIVALENTS AT END OF PERIOD $109,768,526 $ 87,246,079

The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements.

40 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 41

1.1 0.1 0.1 0.1 1.7 2.7 2.7 0.7 2.4 0.4 0.0 0.4 2.2 0.9 6.4 3.0 6.9 3.8 0.2 0.2 3.8 39.8 as a % of Fair Value Value Fair Net AssetsNet 942,013 4,891,747 Fair Value Fair 1,929,319 9,518,834 4,760,268 3,218,303 1,303,633 8,395,083 16,101,510 21,017,201 59,933,411 61,729,368 85,314,245 24,061,532 54,937,380 38,318,329 66,560,973 48,253,303 85,309,304 154,132,074 145,031,878 895,659,708 – 183,942 660,366 Received 1,232,227 6,286,491 3,795,869 71,260,151 57,74 3,026 36,413,397 13,076,652 59,331,422 45,924,243 20,666,703 38,404,878 50,802,949 237,137,870 119,712,019 3 47,911,571 189,040,169 101,949,548 Distributions 160,808,238 1,562,341,731 Amount Invested* 9,750,274 74,417,291 97,131,48 6 49,191,736 97,876,849 66,825,714 44,686,139 46,709,079 46,722,408 48,201,553 42,066,579 73,875,000 16,005,952 10,048,693 99,583,838 60,808,226 63,000,000 131,0 67,552 245,258,801 204,623,049 135,290,448 1,663,140,667 Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE 5,175,000 2,318,750 1,312,500 Unfunded Unfunded 8,155,000 7,500,000 2,250,000 1,000,000 2,220,000 3,228,996 4,050,000 2,500,000 3,850,000 2,000,000 3,500,000 76,125,000 10,472,500 48,470,000 55,250,000 287,000,000 145,350,000 120,960,000 792,687,746 Commitment

† †

HarbourVest Partners VI-Direct Fund L.P. L.P. Fund VI-Partnership Partners HarbourVest Partnership VII-Venture Partners HarbourVest Fu n d L.P. HarbourVest Partners V-Partnership Fund L.P. Fund V-Partnership Partners HarbourVest HarbourVest Partners VIII-Cayman Mezzanine VIII-Cayman Partners HarbourVest and Distressed Debt Fund L.P. Total US Funds US Funds In US Dollars US In Consolidated Schedule of Investments 2020 July 31 At Unaudited Condensed Interim Condensed Unaudited HarbourVest Partners VII-Buyout Partnership Partnership VII-Buyout Partners HarbourVest Fu n d L.P. HarbourVest Partners 2007 Cayman Direct Fund L.P. HarbourVest Partners VIII-Cayman Buyout Fu n d L.P. VIII-Cayman Partners HarbourVest Venture Fund L.P. HarbourVest Partners IX-Cayman Buyout Fu n d L.P. HarbourVest Adelaide Feeder L.P. Feeder Adelaide HarbourVest HarbourVest Partners IX-Cayman IX-Cayman Partners HarbourVest L.P. Fund Credit Opportunities HarbourVest Partners IX-Cayman Venture Venture IX-Cayman Partners HarbourVest Fu n d L.P. HarbourVest Partners Cayman 2013 Direct Fund L.P. HarbourVest Partners Mezzanine Income Mezzanine Partners Income HarbourVest Fu n d L.P. HarbourVest Partners XI Micro Buyout Feeder Fu n d L.P. HarbourVest Partners X Venture Feeder Fu n d L.P. HarbourVest Partners XI Venture Feeder Fu n d L.P. HarbourVest Partners XI Buyout Feeder Fu n d L.P. HarbourVest Partners X Buyout Feeder Fu n d L.P. HarbourVest Partners Cayman Cleantech Fund II L.P. Fair Value Unfunded Amount Distributions as a % of International/Global Funds Commitment Invested* Received Fair Value Net Assets HarbourVest International Private Equity Partners III-Partnership Fund L.P. 3,450,000 147,728,557 148,439,622 432,328 0.0 HarbourVest International Private Equity Partners IV-Direct Fund L.P. – 61,452,400 53,436,349 1,627,517 0.1 HIPEP V-2007 Cayman European Buyout Companion Fund L.P.§ 1,676,597 63,880,350 81,916,877 3,705,507 0.2 Dover Street VII Cayman L.P.‡ 4,413,862 95,586,138 127,8 3 3,710 7,247,402 0.3 HIPEP VI-Cayman Partnership Fund L.P.** 5,889,000 117,8 4 4,925 93,878,622 110,865,025 4.9 HIPEP VI-Cayman Asia Pacific Fund L.P. 2,500,000 47,6 87,4 31 3 6,427,752 40,742,569 1.8 HIPEP VI-Cayman Emerging Markets Fund L.P. – 30,059,489 7,8 37,6 0 5 24,949,309 1.1 HVPE Avalon Co-Investment L.P. 1,643,962 85,135,136 124,138,700 466,198 0.0 Dover Street VIII Cayman L.P. 16,200,000 163,924,389 192,9 57,156 66,699,748 3.0 HVPE Charlotte Co-Investment L.P. – 93,894,011 142,799,867 17,356,6 3 6 0.8 HarbourVest Global Annual Private Equity Fu n d L.P. 16,800,000 83,201,202 50,397,305 100,423,030 4.5 HIPEP VII Partnership Feeder Fund L.P. 27,187,50 0 97,812,50 0 19,779,736 123,608,484 5.5 HIPEP VII Asia Pacific Feeder Fund L.P. 3,450,000 26,550,000 4,841,810 34,193,276 1.5 HIPEP VII Emerging Markets Feeder Fund L.P. 5,200,000 14,800,000 2,668,611 15,940,506 0.7 HIPEP VII Europe Feeder Fund L.P.†† 18,179,344 54,112,474 14,359,232 64,169,813 2.8 HarbourVest Canada Parallel Growth Fu n d L.P. ‡‡ 9,378,937 14,704,891 3,168,802 21,085,217 0.9 HarbourVest 2015 Global Fund L.P. 20,000,000 8 0,017,3 0 9 32,968,961 89,482,293 4.0 HarbourVest 2016 Global AIF L.P. 34,000,000 66,026,107 30,189,901 66,368,527 2.9 HarbourVest Partners Co-Investment IV A IF L.P. 7,000,006 92,999,994 14,371,425 109,200,859 4.8 Dover Street IX Cayman L.P. 23,000,000 77,000,000 30,836,984 77,720,256 3.5 HarbourVest Real Assets III Feeder L.P. 11,000,000 39,000,000 5,917,231 31,276,360 1.4 HarbourVest 2017 Global AIF L.P. 42,500,000 57,520,959 9,704,384 61,538,663 2.7 HIPEP VIII Partnership AIF L.P. 129,200,000 40,800,000 4,900,813 45,045,178 2.0 Secondary Overflow III Tranche B 489,717 9,668,120 1,935,926 19,590,599 0.9 HarbourVest Asia Pacific VIII AIF Fund L.P. 29,750,000 20,255,566 993,725 21,237,461 0.9 Secondary Overflow III Tranche C 1,335,088 8,267,8 87 6,016,969 6,129,562 0.3 Secondary Overflow III Tranche F 12,388,541 17,611,459 3,702,345 17,6 8 5,772 0.8 Secondary Overflow III Tranche G 1,956,097 13,043,903 5,208,838 11,930,444 0.5 Secondary Overflow III Tranche H 11,572,647 18,427,353 2,333,500 21,815,319 1.0 HarbourVest 2018 Global Feeder Fund L.P. 41,650,000 28,350,000 263,321 32,590,181 1.4 HarbourVest Partners Co-Investment V Feeder Fu n d L.P. 55,000,000 45,048,219 – 53,019,421 2.4 HarbourVest Real Assets IV Feeder L.P. 50,000,000 – – 2,276,224 0.1 HarbourVest 2019 Global Feeder Fund L.P. 83,500,000 16,506,832 – 20,298,724 0.9 HarbourVest Credit Opportunities Fund II L.P. 50,000,000 – – (74,554) 0.0 Dover Street X Feeder Fund L.P. 135,000,000 15,018,169 – 22,428,224 1.0 Secondary Overflow Fund IV L.P. (Tranche E) 33,745,328 4,032,262 – 16,883,561 0.8 Total International/Global Funds 889,056,626 1,847,968,032 1,254,226,079 1,359,955,639 60.4 TOTAL INVESTMENTS $1,681,744,372 $3,511,108,699 $2,816,567,810 $2,255,615,347 100.2

* Includes purchase of limited partner interests for shares and cash at the time of HVPE’s IPO. † Includes ownership interests in HarbourVest Partners VII-Cayman Partnership entities. ‡ Includes ownership interest in Dover Street VII (AIV 1) Cayman L.P. § Fund denominated in euros. Commitment amount is €47,450,000. ** Fund denominated in euros. Commitment amount is €100,000,000. †† Fund denominated in euros. Commitment amount is €63,000,000. ‡‡ Fund denominated in Canadian dollars. Commitment amount is C$32,000,000.

As of 31 July 2020, the cost basis of partnership investments is $1,791,466,864.

The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements.

42 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 43

1.1 0.1 0.1 0.1 1.7 1.0 1.8 1.2 0.7 5.7 2.6 2.8 0.4 4.0 0.0 6.4 3.9 3.5 0.2 0.2 0.2 37.7 as a % of Fair Value Value Fair Net AssetsNet 1,115,289 Fair Value Fair 2,221,758 1,430,428 8,218,265 3,611,410 2,332,052 4,423,302 5,634,823 25,647,479 57,619,201 21,829,412 23,788,214 88,168,052 61,525,909 15,844,249 39,670,509 76,990,456 36,490,456 86,896,032 125,158,592 141,682,599 830,298,487 – – – – Received 6,135,379 3,545,869 11,816,651 45,422,100 36,413,397 59,331,422 45,924,243 19,963,861 38,404,878 48,003,773 68,026,931 237,137,870 111,969,614 101,688,184 185,923,470 Distributions 343,051,209 160,808,238 1,523,567,089 Amount Invested* 1,950,274 9,423,693 74,417,291 97,131,48 6 49,191,736 19,036,139 97,876,849 66,825,714 15,755,952 95,143,838 46,709,079 46,722,408 48,201,553 42,066,579 73,875,000 31,500,000 59,033,226 113,427,552 241,508,801 204,623,049 135,290,448 1,569,710,667 Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE 5,175,000 2,318,750 1,312,500 3,125,000 Unfunded Unfunded 8,155,000 2,250,000 1,000,000 2,220,000 3,228,996 3,850,000 2,000,000 3,500,000 4,300,000 12,247,50 0 76,125,000 11,250,000 63,050,000 52,910,000 886,117,746 171,000,000 318,500,000 138,600,000 Commitment † † HarbourVest Partners VI-Direct Fund L.P. HarbourVest Partners VI-Partnership Fund L.P. Fund VI-Partnership Partners HarbourVest HarbourVest Partners V-Partnership Fund L.P. Fund V-Partnership Partners HarbourVest Partnership VII-Venture Partners HarbourVest Fu n d L.P. HarbourVest Partners VIII-Cayman Mezzanine VIII-Cayman Partners HarbourVest and Distressed Debt Fund L.P. US Funds In US Dollars US In At 31 January 2020 (Audited) January 2020 31 At HarbourVest Partners VII-Buyout Partnership Partnership VII-Buyout Partners HarbourVest Fu n d L.P. HarbourVest Partners VIII-Cayman Buyout Fu n d L.P. Venture VIII-Cayman Partners HarbourVest Fu n d L.P. HarbourVest Partners 2007 Cayman Direct Fu n d L.P. HarbourVest Partners IX-Cayman Venture Venture IX-Cayman Partners HarbourVest Fu n d L.P. HarbourVest Partners Cayman 2013 Direct Fund L.P. HarbourVest Partners IX-Cayman Buyout Fu n d L.P. IX-Cayman Partners HarbourVest L.P. Fund Credit Opportunities HarbourVest Partners X Buyout Feeder Fu n d L.P. HarbourVest Partners Cayman Cleantech Fund II L.P. HarbourVest Partners X Venture Feeder Fu n d L.P. Mezzanine Partners Income HarbourVest Fu n d L.P. HarbourVest Partners XI Buyout Feeder Fu n d L.P. HarbourVest Partners XI Venture Feeder Fu n d L.P. HarbourVest Partners XI Micro Buyout Feeder Fu n d L.P. Total US Funds HarbourVest Adelaide Feeder L.P. Feeder Adelaide HarbourVest Fair Value Unfunded Amount Distributions as a % of International/Global Funds Commitment Invested* Received Fair Value Net Assets HarbourVest International Private Equity Partners III-Partnership Fund L.P. 3,450,000 147,728,557 148,439,622 459,648 0.0 HarbourVest International Private Equity Partners IV-Direct Fund L.P. – 61,452,400 53,436,349 1,889,946 0.1 HIPEP V-2007 Cayman European Buyout Companion Fund L.P.§ 1,579,087 63,880,350 81,216,511 4,205,570 0.2 Dover Street VII Cayman L.P.‡ 4,413,862 95,586,138 127,101,279 8,718,149 0.4 HIPEP VI-Cayman Partnership Fund L.P.** 5,546,500 117,8 4 4,925 86,215,226 114,737,162 5.2 HIPEP VI-Cayman Asia Pacific Fund L.P. 3,000,000 47,187,4 31 34,360,314 41,735,529 1.9 HIPEP VI-Cayman Emerging Markets Fund L.P. – 30,059,489 7,122,156 30,298,326 1.4 HVPE Avalon Co-Investment L.P. 1,643,962 85,135,136 124,138,700 480,180 0.0 Dover Street VIII Cayman L.P. 16,200,000 163,924,389 190,959,375 69,693,642 3.2 HVPE Charlotte Co-Investment L.P. – 93,894,011 140,207,934 19,779,480 0.9 HarbourVest Global Annual Private Equity Fu n d L.P. 16,800,000 83,201,202 47,245,0 0 6 97,6 0 6,581 4.4 HIPEP VII Partnership Feeder Fund L.P. 35,312,500 8 9,6 87,50 0 17,9 55,8 47 112,520,808 5.1 HIPEP VII Asia Pacific Feeder Fund L.P. 5,625,000 24,375,000 4,389,847 30,417,420 1.4 HIPEP VII Emerging Markets Feeder Fu n d L.P. 6,600,000 13,400,000 2,308,611 15,641,946 0.7 HIPEP VII Europe Feeder Fund L.P.†† 20,266,911 51,024,594 14,359,231 58,519,964 2.6 HarbourVest Canada Parallel Growth Fund L.P.‡‡ 11,919,759 12,453,815 3,168,802 15,992,657 0.7 HarbourVest 2015 Global Fund L.P. 26,500,000 73,517,3 0 9 26,468,961 87,191,775 4.0 HarbourVest 2016 Global AIF L.P. 37,000,000 63,026,107 28,338,280 63,808,770 2.9 HarbourVest Partners Co-Investment IV AIF L.P. 7,000,006 92,999,994 14,371,425 110,299,577 5.0 Dover Street IX Cayman L.P. 28,000,000 72,000,000 26,024,411 77,528,510 3.5 HarbourVest Real Assets III Feeder L.P. 13,000,000 37,000,000 5,917,231 37,630,862 1.7 HarbourVest 2017 Global AIF L.P. 51,500,000 48,520,959 9,704,384 51,943,094 2.3 HIPEP VIII Partnership AIF L.P. 136,000,000 34,000,000 3,704,597 38,227,782 1.7 Secondary Overflow III Tranche B 489,717 9,668,120 1,935,926 19,121,362 0.9 HarbourVest Asia Pacific VIII AIF Fund L.P. 34,750,000 15,255,566 609,439 15,839,846 0.7 Secondary Overflow III Tranche C 1,335,088 8,267,8 87 6,016,969 5,791,878 0.3 Secondary Overflow III Tranche F 13,213,541 16,786,459 3,385,267 19,792,090 0.9 Secondary Overflow III Tranche G 2,368,597 12,631,403 3,242,588 12,731,479 0.6 Secondary Overflow III Tranche H 11,572,647 18,427,353 1,956,022 22,215,879 1.0 HarbourVest 2018 Global Feeder Fund L.P. 50,750,000 19,250,000 – 21,834,119 1.0 HarbourVest Partners Co-Investment V Feeder Fu n d L.P. 85,000,000 15,048,219 – 15,012,230 0.7 HarbourVest Real Assets IV Feeder L.P. 50,000,000 – – 1,556,224 0.1 HarbourVest 2019 Global Feeder Fund L.P. 95,000,000 5,006,832 – 5,691,795 0.3 HarbourVest Credit Opportunities Fund II L.P. 50,000,000 – – (49,383) (0.0) Dover Street X Feeder Fund L.P. 95,000,000 5,000,000 – 6,356,413 0.3 Total International/Global Funds 920,837,177 1,727,241,145 1,214,300,310 1,235,221,310 56.1 TOTAL INVESTMENTS $1,806,954,923 $3,296,951,812 $2,737,867,399 $2,065,519,797 93.8

As of 31 January 2020, the cost basis of partnership investments is $1,641,567,593.

The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements.

44 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 45

Dividends will be paid shareholders to pro rata to shareholdings. their The shareholders mustapprove any amendment the to Memorandum and Articles of Incorporation. The approval of the sharesof 75% is required in respect ofany changes that are administrative in nature, any material change from the investment strategy and/or investment objective of the Company, or any change the to terms of the investment agreement. management There is no minimum statutory capital requirement under law. Guernsey INVESTMENT MANAGER, COMPANY SECRETARY, ADMINISTRATOR AND The Directors have delegated certain day-to-day operations of the Company the to Investment Manager and the Company Secretary and Administrator, under advice to the Directors, pursuant service to agreements with those parties, withinthe context of the strategy set the by Board. other among for, responsible is Manager Investment The Company’s the of disposing and acquiring, selecting, things, investments, carrying out financing, cash management, and risk management activities, providing investment advisory services, including with respect investment HVPE’s to policies and procedures, andarranging for personnel and support staff of the Investment Manager assist to in the administrative and executive functions of the Company. DIRECTORS the of determination the for responsible are Directors The investment policy of the Company on the advice of the Investment Manager and have overall responsibility for the of review periodic the includes This activities. Company’s Company’s the with compliance Manager’s Investment the investment policies and procedures and the approval of certain investments. A majority ofdirectors must be independent directors and not affiliated with HarbourVest or any affiliate of HarbourVest. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting policies have been applied consistently as presented in the latest audited accounts. Semi-Annual Report and Accounts Six Months July 31 to 2020

HVPE

Statements Interim ConsolidatedFinancial Notes to the Unaudited Condensed Condensed to the Unaudited Notes NOTE 1 COMPANY ORGANISATION AND OBJECTIVEINVESTMENT “Company” (the Limited Equity Private Global HarbourVest or “HVPE”) is closed-ended a investment company registered with the Registrar of Companies in Guernsey under The Companies (Guernsey) 2008Law, (as amended). The Company’s registered officeis BNP Paribas House, St Julian’s Avenue, St Peter Port, 1WA. Guernsey, GY1 The Company was incorporated and registered in Guernsey HVPE is October designedon 18 2007. offer to shareholders diversified a in investing by appreciation capital long-term equity investments. private portfolio of The Company invests in private equity through private equity funds and may make co-investments or other opportunistic investments. The Company is managed HarbourVest by (theAdvisers “Investment L.P. Manager”), an affiliate of HarbourVest Partners, (“HarbourVest”), LLC a private equity fund-of-funds manager. The Company is intended invest to in and alongside existing and newly formed HarbourVest funds. HarbourVest is a global private equity fund-of-funds manager and typically invests capital in primary partnerships, secondary investments, and direct investments across vintage years, geographies, industries, strategies. and Operations of the Company commenced on 6 December following the initial2007, global offering of the Class A ordinary shares. CAPITAL SHARE July 31 At the 2020, Company’s shares were listed on the London Stock Exchange under the symbol “HVPE”. July 31 At there 2020, were shares 79,862,486 issued and outstanding. The shares are entitled the to income and increases and decreases in the Net Asset Value (“NAV”) of the Company, and any to dividends declared andpaid, and have full voting rights. Dividends may be declared by the Board of Directors and paid from available assets subject to the Directors being satisfied that the Company will, immediately after payment of the dividend, satisfy the statutory solvency test prescribed The by Companies (Guernsey) 2008Law, (as amended). Notes to the Unaudited Condensed Interim Consolidated Financial Statements continued

NOTE 3 MATERIAL AGREEMENTS AND RELATED FEES Investment Management Agreement Administrative Agreement The Company has retained HarbourVest Advisers L.P. as the The Company has retained BNP Paribas (“BNP”) as Investment Manager. The Investment Manager is reimbursed Company Secretary and Administrator. Fees for these for costs and expenses incurred on behalf of the Company services are paid as invoiced by BNP and include an in connection with the management and operation of the administration fee of £50,000 per annum, a secretarial fee of Company. The Investment Manager does not directly charge £60,000 per annum, compliance services fee of £15,000 per HVPE management fees or performance fees other than annum, ad-hoc service fees, and reimbursable expenses. with respect to parallel investments. However, as an investor in the HarbourVest funds, HVPE is charged the same During the period ended 31 July 2020, fees of $78,780 were management fees and is subject to the same performance incurred to BNP and are included as other expenses in the allocations as other investors in such HarbourVest funds. Unaudited Condensed Interim Consolidated Statements During the periods ended 31 July 2020 and 2019, of Operations. During the period ended 31 July 2019, fees reimbursements for services provided by the Investment of $73,266 were incurred to BNP and are included as other Manager were $1,013,431 and $956,184, respectively. expenses in the Unaudited Condensed Interim Consolidated Statements of Operations. On 30 July 2019, HVPE approved a revised Investment Management Agreement, which has been updated for legal Registrar and regulatory changes, and other minor amendments. The Company has retained Link Asset Services (formerly “Capita”) as share registrar. Fees for this service include During the periods ended 31 July 2020 and 2019, HVPE a base fee of £12,870, plus other miscellaneous expenses. had two parallel investments: HarbourVest Acquisition S.à.r.l. During the periods ended 31 July 2020 and 2019, registrar (via HVPE Avalon Co-Investment L.P.) and HarbourVest fees of $25,370 and $21,427, respectively, were incurred and Structured Solutions II, L.P. (via HVPE Charlotte Co- are included as other expenses in the Unaudited Condensed Investment L.P.). Management fees paid for the parallel Interim Consolidated Statements of Operations. investments made by the Company were consistent with the fees charged by the funds alongside which the parallel Independent Auditor’s Fees investments were made during the periods ended 31 July For the periods ended 31 July 2020 and 2019, fees of 2020 and 2019. The HVPE Avalon Co-Investment L.P. $184,826 and $142,983 were accrued, respectively, and are management fee was terminated on 30 September 2017. included in professional fees in the Unaudited Condensed Management fees included in the Unaudited Condensed Interim Consolidated Statements of Operations. The 31 July Interim Consolidated Statements of Operations are shown 2020 and 2019 figures include $103,372 and $64,443, in the table below: respectively, which represents approximately half of each period’s respective annual audit fee. In addition, the 31 July 2020 2019 2020 and 2019 figures include fees of $81,454 and $71,738, HVPE Charlotte respectively, for audit-related services due to the Auditor, Co‑Investment L.P. $378,524 $378,164 Ernst & Young LLP, conducting a review of the Interim Financial Statements for each period end. Other non-audit For the periods ended 31 July 2020 and 2019, fees paid to the Auditor by the Company were nil for the management fees on the HVPE Charlotte Co-Investment periods ended 31 July 2020 and 2019. L.P. investment were calculated based on a weighted average effective annual rate of 0.89% on capital originally committed (0.87% on committed capital net of management fee offsets) to the parallel investment.

46 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 47 Because of the inherent uncertainty of these valuations, the estimated fair value may differ significantly from the value that would have been used had a ready market for this security existed, and the difference could be material. During the periods ended the July 31 2020 and 2019, Company and made contributions of $214,156,887 respectively, Level to 3 investments$202,413,602, and andreceived $138,913,095, distributions of $78,700,411 respectively, from Level 3 investments. July As of 31 2020, classified are investments Company’s the of $2,255,615,347 of the as Level January As 3. of 31 $2,065,519,797 2020, 3. Level classified as were investments Company’s The Company recognises transfers at the current value at the transfer date. There were no transfers during the periods ended Investments July 31 2020 and 2019. include limited partnership interests in private equity partnerships, all of which carry restrictions on redemption. The investments are non-redeemable and the Investment Manager estimates an average remaining years life of 10 with a range 33 of 1 to remaining. years JulyAs of 31 the 2020, Company had invested committed Company’s the of 68.8% or $3,703,113,852, capital in investments and had received $3,029,138,380 dividends (including from distributions in cumulative the formerly held investment HarbourVest Senior Loans Europe). There were no investment transactions during the periods ended July in which 31 2020 and 2019 an investment was period. the during of disposed and acquired COMMITMENTS 5 NOTE JulyAs of 31 the 2020, Company has unfunded investment $1,681,744,372 partnerships of limited other to commitments which are payable upon notice the by partnerships which to the commitments have been made. Unfunded investment commitments are denominated of $1,646,620,494 in are denominatedUS dollars, in euros, and $25,744,941 dollars. Canadian in denominated are $9,378,937 JanuaryAs of 31 the 2020, Company had unfunded partnerships limited other to commitments investment Unfundedof $1,806,954,923. investment commitments were denominated in US dollars, of $1,767,642,666 were denominated$27,392,498 in euros, and $11,919,759 dollars. Canadian in denominated were Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE NOTE 4 INVESTMENTS 4 NOTE value fair on guidance authoritative the with accordance In accepted generally under disclosures and measurements Company the States, United the in principles accounting discloses the fair value of its investments in a hierarchy that measure to used techniques valuation to inputs the prioritises the fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority unobservable to inputs (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows: Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability access to at the measurement date. Level 2 – Inputs other than quoted prices that are indirectly, or directly either liability or asset the observable for including inputs in markets that are not considered to be active. Level 3 – Inputs that are unobservable. Generally, the majority of the Company’s investments are valued utilising classified within therefore are and unobservable inputs, Level 3. Level 3 investments include limited partnership interests in HarbourVest funds which report under US generally accepted accounting principles. Inputs used determine to fair value are primarily based on the most recently reported providedNAV the by underlying investment manager as a practical expedient under ASC The 820. fair value is then adjusted for known investment operating expenses and subsequent transactions, including investments, realisations, changes in foreign currency exchange rates, and changes in value of private and public securities. Income derived from investments in HarbourVest funds is equity the Under method. equity pick-up the using recorded proportionate Company’s the accounting, of method pick-up share of the net income (loss) and net realised gains (losses), as reported the by HarbourVest funds, is reflected in the Statements Consolidated Interim Condensed Unaudited of Operations as net realised gain (loss) on investments. increase aggregate the of share proportionate Company’s The as (depreciation), appreciation unrealised in decrease or Unaudited the in reflected is funds, HarbourVest the by reported Operations of Statements Consolidated Condensed Interim (depreciation) appreciation unrealised in change as net on investments. Notes to the Unaudited Condensed Interim Consolidated Financial Statements continued

NOTE 6 DEBT FACILITY loan-to-value ratios and portfolio diversity tests applied to As of 31 July 2020 and 2019, the Company had an the Investment Portfolio of the Company. At 31 July 2020, agreement with Mitsubishi UFJ Trust and Banking there was $120,000,000 debt outstanding against the Corporation (“MUFG”) and Credit Suisse for the provision Facility. There was no debt outstanding at 31 January 2020. of a multi-currency revolving credit facility (the “Facility”) for For the periods ended 31 July 2020 and 2019, interest an aggregate amount up to $600 million with a termination of $1,356,931 and $16,973, respectively, was incurred. date no earlier than January 2026, subject to usual Included in other assets at 31 July 2020 and 31 January covenants. The MUFG commitment was $300 million, 2020 are deferred financing costs of $7,302,643 and and the Credit Suisse commitment was $300 million. $7,976,171, respectively, related to refinancing the Facility. The deferred financing costs are amortised on the terms of Amounts borrowed against the Facility accrue interest at the Facility. The Company is required to pay a non-utilisation an aggregate rate of the LIBOR/EURIBOR, a margin, and, fee calculated as 100 basis points per annum for the Credit under certain circumstances, a mandatory minimum cost. Suisse commitment and 90 basis points per annum for the The Facility is secured by the private equity investments MUFG commitment. For the periods ended 31 July 2020 and cash and equivalents of the Company, as defined in the and 2019, $2,522,601 and $2,935,360, respectively, agreement. Availability of funds under the Facility and interim in non-utilisation fees have been incurred. repayments of amounts borrowed are subject to certain

NOTE 7 FINANCIAL HIGHLIGHTS For the Six-month Periods Ended 31 July 2020 and 2019 2020 2019 Shares PER SHARE OPERATING PERFORMANCE: Net Asset Value, beginning of period $27.58 $24.09 Net realised and unrealised gains 0.68 1.78 Net investment loss (0.08) (0.07) Total from investment operations 0.60 1.71 Net Asset Value, end of period $28.18 $25.80 Market value, end of period $19.90* $21.50* Total return at Net Asset Value 2.2% 7.1% Total return at market value (17.6%) 14.7% RATIOS TO AVERAGE NET ASSETS Expenses† 0.31% 0.32% Net investment loss (0.29%) (0.27%)

* Represents the US dollar-denominated share price. † Does not include operating expenses of underlying investments.

48 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 49 NOTE 11 SUBSEQUENT EVENTS SUBSEQUENT 11 NOTE In the preparation of the Interim Financial Statements, the Company has evaluated the effects, of events if any, occurringafter July 31 2020 and before November 26 2020, the date that the Interim Financial Statements were issued. In October and November HVPE 2020, agreed participate to in three potential transactions as a result of the Company’s combined The funds. HarbourVest to commitments existing however, million, $34.3 to up is principle in commitment also could and completion, to subject are transactions these be scaled-back. It is anticipated that these transactions will information Further December 2020. 31 before or on close will be provided in the estimated monthly as and NAVs when complete. transactions the There were no other events or material transactions subsequent July to 31 2020 that required recognition or disclosure in the Interim Financial Statements. Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE NOTE 8 PUBLICATION AND CALCULATION OF NET ASSET VALUE The of the NAV Company is equal the to value of its total assets less its total liabilities. The per NAV share is calculated dividing by the Net Asset Valuethe by number of shares in issue on The that day. Company publishes the NAV per share of the shares as calculated, monthly in arrears, at each month end, generally within days. 15 NOTE 9 RELATED PARTY TRANSACTIONS Other amounts payable HarbourVest to of Advisers L.P. represent and $92,281 $83,971 expenses of the Company incurred in the ordinary course of business, which have been paid and by are reimbursable HarbourVest to Advisers July at 31 2020 and January 31 L.P. respectively. 2020, Board-related expenses, primarily compensation, of and were $278,582 incurred$261,450 during the periods ended respectively. July 31 2020 and 2019, INDEMNIFICATIONS 10 NOTE General Indemnifications In the normal course of business, the Company may enter into contracts that contain a variety of representations and warranties and which provide for general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. Based on the prior experience of the Investment Manager, the Company expects the risk of loss under these indemnifications be to remote. Manager IndemnificationsInvestment normal the in practices business standard with Consistent course of business, the Company has provided general indemnifications the to Investment Manager, any affiliate of the Investment Manager and any person acting on behalf of the Investment Manager or such affiliate when they act in good faith, in the best interest of the Company. The Company is unable develop to an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having make to any payments under remote. be to indemnifications business general these Directors’ Officers’ and Indemnifications the that provide Incorporation Articles of Company’s The Directors, managers or other officers of the Company shall be fully indemnified the by Company from and against all actions, expenses and liabilities which they may incur by reason of any contract entered into or any act in or about the execution of their offices, except such (if any) as they shall incur or by through their own negligence, default, breach of duty, or breach of trust, respectively. Glossary of Private Market Terms

Term Definition Allocated Investments Commitments made to HarbourVest funds that have been allocated to, and can be called by, an underlying General Partner Bridge Financing An interim financing option used by private equity funds to delay or aggregate capital calls. A given investment is financed using a bridging loan, typically for a period of six to 12 months, with a capital call required only once the bridging loan is due to be repaid Buyout An investment strategy that involves acquiring controlling stakes in mature companies and generating returns by selling them at a profit after operational efficiencies, expansion and/or financial improvements Called Capital Total amount of capital called for use by the General Partner Capital Call or Drawdown A request made by the General Partner for a portion of the capital committed by a Limited Partner Carried Interest, Carry The share of profits due to a General Partner once the Limited Partner’s commitment to a fund or Performance Fee plus a defined hurdle rate is reached Co-investment (sometimes A minority investment, made directly into an operating company, alongside a fund or other Direct Co-investment) private equity investor Commingled Fund A fund structure that pools investments from multiple investors into a single fund Commitment Period The period of time within which a fund can make investments as established in the Limited or Investment Period Partnership Agreement Committed Capital The capital a Limited Partner has agreed to commit to a fund across its lifespan or Commitment Contributed Capital or The total amount of capital paid into a fund at a specific point in time Paid-in Capital Cost (Current, Realised, Total) Current: The cost of current underlying companies Realised: The cost of underlying companies from which the fund has fully or partially exited Total: The cost of underlying companies, both current and fully or partially exited Discount An investment company trades at a discount if the share price is lower than the Net Asset Value per share. The discount is shown as the percentage difference between the share price and NAV per share Discount (Live) This refers to the actual discount prevailing in the market at a given point in time. On 31 July 2020, the most recent published NAV figure was the 30 June 2020 estimate. The Live Discount on 31 July 2020, therefore, is calculated by comparing the 31 July 2020 share price against the 30 June 2020 estimated NAV, adjusted for foreign exchange movement Discount (Notional) As of the date of this report, the unaudited 31 July NAV per share is known and available to the market. This information was not available on 31 July 2020 and market participants could not have used it as a reference when making an investment decision. The discount calculated by comparing the 31 July share price with the unaudited 31 July NAV is, therefore, a notional/ retrospective discount Distributed or Distributions The total amount of cash and stock that has been returned to a fund and/or Limited Partners Distributed to Paid-in Capital Total distributions to a fund and/or Limited Partners divided by paid-in capital (“DPI”) or Realisation Multiple Dry Powder Capital that has been raised, but not yet invested Due Diligence The process undertaken to confirm the accuracy of all data relating to a fund, company, or product prior to an investment. This can also refer to the investigation of a buyer by a seller Earnings Before Interest, Taxes, A measure of earnings before interest and taxes that exclude non-cash expenses. Valuation Depreciation and Amortisation methods are commonly based on a comparison of private and public companies’ value as (“EBITDA”) a multiple of EBITDA Fund-Level Borrowing Exposure to leverage in underlying private equity funds. In the context of HVPE, this refers to the Company’s look-through exposure to borrowings at the HarbourVest fund-level Fund-of-funds (sometimes An investment strategy of holding a portfolio of third-party private equity funds and/or other referred to as Primaries) investments rather than investing directly in companies

50 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 51 Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE Definition The amount of contributed capital thathas been invested by the fund, or capital invested by a fund in a third-party investment The manager ofa fund Investment in newly-mature companies looking raise to funds, often expand to or restructure acquisition an finance or markets, new enter operations, The first offering of stock by a company the to public on a regulated exchange A measure of the absolute annual rate of return of an investment that takes both the timing and magnitude of cash flows into account, calculated using contributed capital, distributions, and the value of unrealised investments: Gross: Without fees and carried interest taken into account deducted interest carried and fees With Net: Realised Gross: Thereturn from underlying holdings from which the fund has already fully or partially exited, withoutfees and carried interest taken into account commitmentsTotal HarbourVest to funds, which are be to prospectively called or invested by an underlying General Partner. This comprises allocated investments and unallocated investments A term given the to typical shape adopted by the annual returns from a private equity fund during its lifecycle when graphed. Due the to investment process, capital calls and fees precede value creation and potential distributions The investors in a Limited Partnership – the typical structure of a private equity fund. Limited Partners are not involved in the day-to-day management of a fund structure legal the Partnership, Limited a defines and constitutes which document The equity funds private by typically adopted The fee paid a fund, to typically a percentage of the Limited Partner’s commitment The average value calculated from a set of numbers The middle value in an ordered sequence of numbers The consolidation of companies, for example where the ownership of a company in the entity another with, combined or to, transferred portfoliounderlying is An investment strategy that typically includes junior debt and senior equity, often with the option convert to debt into equity in the event of default The market value of all current/unrealised investments A minimum annual rate of return, determined in the Limited Partnership Agreement, that a fund must achieve before the General Partner may receive carried interest A private equity fund that invests directly in privately-held companies rather than in other investment vehicles Incorporation Articles of the including documents, organisational and legal Company’s The Prospectus the and transactions negotiated privately through companies non-public in made Investments An investment strategy that invests in physical assets that derive value and generate returns and gas, and oil land, agricultural infrastructure, including properties, and substance their from commodities other An underlying holding from which the General Partner has exited holdings underlying of realisation or liquidation the from generated returns The The returns generated from the liquidation or realisation of underlying holdings divided by the exited and remaining both holdings, all of cost A refinancing strategy used by private equity funds, typically involving an increase in the level of borrowing enable to an early cash distribution investors to A fund that purchases pre-existing interests in private equity funds or portfolios of operating companies Funded Capital Funded (“GP”) Partner General Growth Capital or Growth Equity (“IPO”) Offering Public Initial Internal Rate of Return (“IRR”) Gross) Realised Net, (Gross, Pipeline Investment J-curve Partner Limited Partnership Agreement Limited (“LPA”) Fee Management Mean Median Acquisitions and Mergers (“M&A”) Finance/Debt Mezzanine Net Asset Value (“NAV”), Residual Value or Value Current Preferred Return or Hurdle Rate Primary Fund or Primaries Fund-of-funds) (sometimes Documents Principal Private Markets Assets Real Exit or Investment Realised Proceeds or Value Realised Cost Total to Value Realised Multiple (“RV/TC”) Recapitalisation or Secondaries Fund Secondary Term Glossary of Private Market Terms continued

Term Definition Special Situations An opportunistic investment strategy that looks to take advantage of market dislocations and unique situations to invest in private companies at discounts to their “fair” market value Total Value The fund’s total market value plus any capital distributions already made Total Value/Paid-in (“TVPI”) The fund’s total market value plus any capital distributions already made divided by the or Total Value/Contributed amount of capital already paid into the fund by investors Multiple Total Value/Total Cost The total value divided by the total cost to date (“TV/TC”) Multiple Unallocated Investments Commitments made to HarbourVest funds that have not been allocated to, and cannot be called by, an underlying General Partner Unfunded The portion of investors’ capital commitment that has yet to be “drawn down” or called by a fund manager Uplift Increase in value received upon realisation of an investment relative to its carrying value prior to realisation Valuation Multiple The market value of an asset relative to a key financial metric Venture Capital An investment strategy that generates returns by backing start-up and early stage companies that are believed to have long-term growth potential Vintage Year Usually the year in which capital is first called by a particular fund, though definitions can vary based on the type of fund or investment

52 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 53

2020 -2.2% -8.5% 22.1% +2.3% 29.0% 23.9% to NAV NAV to -12.0% +19.4% Discount Discount at 31 Julyat 31 Difference Difference HVPE’s Relative Relative HVPE’s

2020 -7.1% -0.1% £15.28 £15.28 £15.28 +16.7% +18.8% +28.2% at 31 Julyat 31 Movement Share Price FTSE TR AW +2.2% Period £19.62 £21.54 £20.07 +14.5% +12.3% +10.3% +16.2% Change (1.3085) GBP/USD Period-on- Exchange Rate at 31 Julyat 31 2020 NAV ConvertedNAV $28.18 $28.18 $16.75 $18.47 $27.58 $21.46 $25.67 $24.09 $26.26 Semi-Annual Report and Accounts Six Months July 31 to 2020 NAV perNAV Share NAV perNAV Share HVPE

(PAGES 10 TO 11) TO 10 s (PAGES 31 January31 2020 31 July31 2020 31 January31 2019 31 January31 2016 January31 2017 January31 2018 Date KPI The KPI metrics show the movement between per the NAV share (in US dollars) and the share price in sterling and translated into US dollars. Relative the to FTSE TR, AW this is the difference in movement between the year-on-year change of this index vs the particular HVPE KPI. Overleaf the calculations for the balance sheet ratio are provided. PERNAV SHARE ($) Date (estimate of NAV and final)

Estimated at 30 NAV June 2020 (published July 2020) 17 Estimated July at 31 NAV 2020 August) 20 (published Final (US NAV GAAP) July at 31 2020 November) 27 (published Alternative PerformanceMeasures RECONCILIATION OF SHARE PRICE DISCOUNT NET TO ASSET VALUE PER SHARE The share price discount per NAV to share will vary depending on which per NAV share figure is used. The“live” discount referred elsewhere to in this report is calculated using the per live share NAVs available in the market January as at 31 2020 and July31 those 2020, being December the31 and 30 June 2019 2020 estimates of (sterling$26.92 equivalentand £20.31) (sterling$25.67 equivalent respectively, £20.70), adjusted for USD/GBP foreign exchange movement, against share prices January at 31 Julyof £18.36 at 31 2020. 2020 and £15.28 The table below outlines the notional discounts the to share price July at 31 based 2020, per on the share NAVs published after this July date (31 2020 estimate and final). Movements between the published per share NAVs for the same calendar date largely arise as further underlying fund valuations are received, and as adjustments are made for public markets, foreign exchange and operating expenses. Alternative Performance Measures continued

ANNUALISED OUTPERFORMANCE OF FTSE AW TR SINCE INCEPTION (2007) NAV (US dollar) Compound Annual Growth Rate (“CAGR”) 07/12/2007 $10.00 31/07/2020 $28.18 Elapsed time (years) 12.7 US dollar CAGR 8.5% FTSE AW TR (US dollar) CAGR 07/12/2007 269.9 31/07/2020 507.4 Elapsed time (years) 12.7 FTSE AW TR CAGR 5.1%

Annualised outperformance of FTSE AW TR since inception (2007) calculation 8.5% minus 5.1% 3.4%

ANNUALISED OUTPERFORMANCE OF FTSE AW TR OVER TEN YEARS TO 31 JULY 2020 NAV (US dollar) Compound Annual Growth Rate (“CAGR”) 31/07/2010 $9.03 31/07/2020 $28.18 Elapsed time (years) 10.0 US dollar CAGR 12.0% FTSE AW TR (US dollar) CAGR 31/07/2010 205.9 31/07/2020 507.4 Elapsed time (years) 10.0 FTSE AW TR CAGR 9.4%

Annualised outperformance of FTSE AW TR since inception (2007) calculation 12.0% minus 9.4% 2.6%

TOTAL SHAREHOLDER RETURN (£) Period-on- Date Share Price (£) Period Change 31 January 2017 £11.95 +37.2% 31 January 2018 £12.52 +4.8% 31 January 2019 £14.26 +13.9% 31 January 2020 £18.36 +28.8% 31 July 2020 £15.28 -16.8%

54 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 55

75% 40% 2020 2020 2020 176% -9.9% +2.4% $130.6 $130.6 $730.6 $403.7 +12.1% -17.5% $600.0 $600.0 +12.6% $1,512.9 $1,134.3 $1,8 07.0 $1,8 07.0 $2,202.7 $3,872.5 $2,065.5 Difference 31 January31 January31 January31 HVPE’s Relative Relative HVPE’s 35% 63% -7.1% 2020 2020 2020 -0.1% 175% $797.1 $207.3 $109.8 $109.8 $480.0 $480.0 $589.8 +16.7% +18.8% 31 July 31 July 31 July +28.2% $1,681.7 $1,681.7 $3,937.4 $1,264.6 $2,255.6 $2,250.8 Movement FTSE TR AW +5.5% -17.6% +21.1% +18.2% +28.8% Period-on- Period Change Period

$17.77 $24.15 $12.41 $18.75 $15.03 $19.90 Semi-Annual Report and Accounts Six Months July 31 to 2020 Share Price ($ Converted)($ HVPE HVPE introduced an additional US dollar share price December on 10 from 2018; this date onwards, the actual US dollarby the London share Stock price, Exchange, as reported has been used. Prior this to date, the US dollar share price had been rate. converted exchange prevailing from the sterling share price at the Total Ratio Coverage Commitment 31 January31 2016 January31 2018 31 January31 2017 Investment Portfolio Investment Pipeline NAV Ratio Commitment Total Cash facility credit Available Total sources Investment Pipeline Cash facility credit Available Current year estimated realisations Total sources Next three years’ estimated investments Rolling Coverage Ratio Coverage Rolling coverage) commitment medium-term measure of (A Commitment Coverage Ratio Coverage Commitment (Short-term liquidity as a percentage Investment of Total Pipeline) MANAGING THE BALANCE THE SHEETMANAGING Ratio Commitment Total (Total exposure to private markets investments as a percentage of NAV) * Year 31 January31 2019* Rolling Coverage Ratio Coverage Rolling TOTAL SHAREHOLDER RETURN ($) RETURN SHAREHOLDER TOTAL 31 January31 2020* July31 2020* Disclosures

INVESTMENTS Please keep this cautionary note in mind while reading The companies represented within this report are provided this report. for illustrative purposes only, as example portfolio holdings. Some of the factors that could cause actual results to vary There are over 9,500 individual companies in the HVPE from those expressed in forward-looking statements portfolio, with no one company comprising more than 1.8% include, but are not limited to: of the entire portfolio. / the factors described in this report; The deal summaries, General Partners (managers), and/or / the rate at which HVPE deploys its capital in investments companies shown within the report are intended for and achieves expected rates of return; illustrative purposes only. While they may represent an / HarbourVest’s ability to execute its investment strategy, actual investment or relationship in the HVPE portfolio, there including through the identification of a sufficient number is no guarantee they will remain in the portfolio in the future. of appropriate investments; Past performance is no guarantee of future returns. / the ability of third-party managers of funds in which the HarbourVest funds are invested and of funds in which FORWARD-LOOKING STATEMENTS the Company may invest through parallel investments to This report contains certain forward-looking statements. execute their own strategies and achieve intended returns; Forward-looking statements relate to expectations, beliefs, / the continuation of the Investment Manager as manager projections, future plans and strategies, anticipated events of the Company’s investments, the continued affiliation or trends, and similar expressions concerning matters that with HarbourVest of its key investment professionals, and are not historical facts. In some cases, forward-looking the continued willingness of HarbourVest to sponsor the statements can be identified by terms such as “anticipate”, formation of and capital raising by, and to manage, new “believe”, “could”, “estimate”, “expect”, “intend”, “may”, private equity funds; “plan”, “potential”, “should”, “will”, and “would”, or the / HVPE’s financial condition and liquidity, including its ability negative of those terms, or other comparable terminology. to access or obtain new sources of financing at attractive The forward-looking statements are based on the rates in order to fund short-term liquidity needs in Investment Manager’s beliefs, assumptions, and accordance with the investment strategy and expectations of future performance and market commitment policy; developments, taking into account all information currently / changes in the values of, or returns on, investments that available. These beliefs, assumptions, and expectations can the Company makes; change as a result of many possible events or factors, not all / changes in financial markets, interest rates, or industry, of which are known or are within the Investment Manager’s general economic or political conditions; and control. If a change occurs, the Company’s business, / the general volatility of the capital markets and the market financial condition, liquidity, and results of operations may price of HVPE’s shares. vary materially from those expressed in forward- looking statements. PUBLICATION AND CALCULATION OF NET ASSET VALUE By their nature, forward-looking statements involve known The NAV of the Company is equal to the value of its total and unknown risks and uncertainties because they relate assets less its total liabilities. The NAV per share is to events, and depend on circumstances, that may or may calculated by dividing the NAV of the Company by the not occur in the future. Forward-looking statements are not number of shares in issue. The Company intends to publish guarantees of future performance. Any forward-looking the estimated NAV per share as calculated, monthly in statements are only made as at the date of this document, arrears, as at each month end, generally within 20 days. 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. The Investment Manager qualifies any and all of its forward-looking statements by these cautionary factors.

56 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 57 2.2% of underlying2.2% portfolio holdings are denominated in sterling. There is no sterling-denominated Pipeline. Investment of underlying portfolio1.1% holdings are denominated dollar- Australian no is There dollars. in Australian Pipeline. Investment denominated of underlying0.3% portfolio holdings are denominated in Swiss francs. There is no Swiss franc-denominated Pipeline. Investment of underlying0.5% portfolio holdings are denominated dollar-denominated Canadian The dollars. in Canadian million. C$16 is Pipeline Investment Management of Foreign Currency Exposure Currency Foreign of Management euro-denominated three includes Portfolio Investment The dollar-denominated Canadian a and funds HarbourVest of underlyingfund. 16.4% portfolio holdings are Investment euro-denominated The euros. in denominated million. €22 is Pipeline / / / / HVPE has exposure foreign to currency movement the within assets currency-denominated through foreign Investment Portfolio and through its InvestmentPipeline of unfunded commitments, which are long term in nature. The Company’s most significant currency exposure is to euros. The Company does not actively use derivatives or other products hedge to the currency exposure. Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE and Conversus, 1 Absolute, referred as to “HVPE Avalon Co-Investment in the L.P.” Investments, of Schedule Consolidated Interim Condensed Unaudited has been fully realised. remains However, $466,198 in escrow. 1 adjusted for changes in the value of public securities, foreign currency, known material events, cash flows, and operating expenses during July The 2020. valuation of each HarbourVest fund is presented on a fair value basis accounting accepted generally US with in accordance principles (“US GAAP”). See Note 4 in the Notes the to Financial Consolidated Interim Condensed Unaudited Statements on page 47. financial typically Manager obtains Investment The information from 90% or more of the underlying investments for each HarbourVest of HVPE’s funds calculate to the NAV. For each fund, the accounting team reconciles investments, distributions, and unrealised/realised gains and losses the to Financial Statements. The team also reviews underlying policies. partnership valuation REGULATORY INFORMATION REGULATORY HVPE is required comply to with the Listing, Disclosure Guidance and Transparency Rules of the Financial Conduct Authority in the United Kingdom (the “LDGT Rules”). It is also Services Financial Guernsey Commission the by authorised as an authorised closed-end investmentscheme under the Protection of Investors (Bailiwick of Guernsey) 1987, Law, as amended (the “POI Law”). HVPEis subject certain to ongoing requirements under the LDGT Rules and the POI Law and certain rules promulgated thereunder relating to the disclosure of certain information investors, to including reports. financial half-yearly and annual of publication the POLICY VALUATION Valuations Represent Fair Value Under US GAAP July is 31 based 2020 NAV HVPE’s on the 30 June 2020 of eachNAV HarbourVest fund, Absolute, KEY INFORMATION COMPANY ADVISERS JOINT CORPORATE Exchange INVESTMENT MANAGER BROKERS London Stock Exchange (Main Market) HarbourVest Advisers L.P. Jefferies Hoare Govett Vintners Place Ticker c/o HarbourVest 68 Upper Thames Street HVPE (£)/HVPD ($) Partners, LLC One Financial Center London EC4V 3BJ Listing date Boston MA 02111 Tel +44 20 7029 8000 9 September 2015 (LSE Main Market) Tel +1 617 348 3707 2 May 2010 (LSE Specialist Fund Segment J.P. Morgan Cazenove* – since migrated to LSE Main Market) AUDITOR 25 Bank Street Canary Wharf 6 December 2007 (Euronext – since delisted) Ernst & Young LLP London E14 5JP Royal Chambers Fiscal year end Tel +44 20 7314 7361 St Julian’s Avenue 31 January St Peter Port * J.P. Morgan Securities Ltd., Base currency which conducts its UK Guernsey GY1 4AF investment banking activities US dollars Tel +44 1481 717 400 as J.P. Morgan Cazenove.

Sterling quote US dollar quote COMPANY SECRETARY REGISTERED OFFICE London Stock Exchange London Stock Exchange AND ADMINISTRATOR HarbourVest Global ISIN ISIN BNP Paribas Securities Private Equity Limited GG00BR30MJ80 GG00BR30MJ80 Services Company Registration SEDOL SEDOL BNP Paribas House Number: 47907 BR30MJ8 BGT0LX2 St Julian’s Avenue BNP Paribas House TIDM TIDM St Peter Port St Julian’s Avenue HVPE LN HVPD LN Guernsey GY1 1WA St Peter Port Tel +44 1481 750 800 Guernsey GY1 1WA Investment Manager www.bnpparibas.je Tel +44 1481 750 800 HarbourVest Advisers L.P. (affiliate of HarbourVest Partners, LLC) REGISTRAR Registration Link Asset Services Financial Conduct Authority The Registry 34 Beckenham Road Fund consent Beckenham Guernsey Financial Services Commission Kent BR3 4TU Outstanding shares Tel +44 (0)871 664 0300 79,862,486 ordinary shares Tel +44 (0)20 8369 3399 (outside UK) 2020/21 CALENDAR Monthly NAV estimate: Generally within 20 days SWISS REPRESENTATIVE of Month End Hugo Fund Services SA 6 Cours de Rive Annual Report and Audited Consolidated Financial 1204 Geneva Statements: May 2021 Switzerland

SWISS PAYING AGENT Banque Cantonale de Genève 17 Quai de l’Ile 1211 Geneva 2 Switzerland

58 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020 STRATEGIC REPORT GOVERNANCE REPORT INTERIM FINANCIAL STATEMENTS SUPPLEMENTARY 59

Semi-Annual Report and Accounts Six Months July 31 to 2020 HVPE Notes Notes

60 HVPE Semi-Annual Report and Accounts Six Months to 31 July 2020

HARBOURVEST GLOBAL PRIVATE EQUITY LIMITED Company Registration Number: 47907

BNP Paribas House, St Julian’s Avenue, St Peter Port, Guernsey GY1 1WA

Tel +44 1481 750 800 www.hvpe.com