2018 ESG REPORT GOVERNANCE ACTIVITIES ENVIRONMENTAL, SOCIAL,AND ANNUAL REVIEWOF HARBOURVEST’S CONTENTS

3 14 MESSAGE FROM THE EXECUTIVE SUPPORTING EMERGING AND MANAGEMENT COMMITTEE DIVERSE-LED MANAGERS IMPACT INVESTING, FEMALE-LED VC FUNDS 4 We’re driven by the APPROACH AND GOVERNANCE 20 belief that strong PROGRAM OVERVIEW, GLOBAL ESG COMMITTEE CORPORATE RESPONSIBILITY financial returns and DIVERSITY, COMMUNITY, TALENT DEVELOPMENT, positive social change 6 OPERATIONAL HIGHLIGHTS COMMITTED TO RESPONSIBLE INVESTING can be accomplished ESG INVESTMENT PROCESS, PRI ASSESSMENT, 24 in tandem. GP ESG RANKINGS OUTREACH AND EVENTS

HARBOURVEST 2018 ESG REPORT / 1 MESSAGE FROM THE “ESG factors are becoming EXECUTIVE MANAGEMENT COMMITTEE more prominent in the

We are pleased to present HARBOURVEST PARTNERS’ Perhaps our most gratifying highlight came in the form of an external investment decision-making 2018 ESG REPORT, our annual review of the initiatives validation of the progress we have made. Our ESG efforts are assessed process and will only grow in and activities we undertook in 2018 to support our independently each year by the PRI, and our most recent results across importance in the years ahead.” longstanding commitment to being conscientious three core categories—Strategy and Governance (A+), Indirect Investments investors and engaged corporate citizens. (A+), and Direct Investments (A)—were our best ever and placed us in the As a leading private markets manager and investor, as well as a proud top quartile of private equity managers (see p. 7). signatory to the Principles for Responsible Investment (“PRI”), we have a dual None of these achievements would be possible without our incredibly responsibility to continuously strengthen our own ESG capabilities, and to dedicated people. We may be biased, but our team cares a great deal look for ways to drive increased awareness and adoption across our industry. about giving back. To further support their generosity, we introduced a In 2018, these efforts included providing deeper ESG training to more of our matching gift program in 2018, and held two Global Volunteer Weeks global staff and strengthening our post-investment monitoring protocols. where staff based in our nine global offices performed community service In terms of influencing awareness and adoption, we used our proprietary activities during business hours (see p. 24). These community-focused manager scorecard to rank the ESG programs of 178 general partners, activities also serve to reinforce the team-building culture that is pervasive and plan to share these results with them in 2019 so they can see how across the firm. they perform relative to their peers (see p. 12). Through this benchmarking we hope to drive further improvements in ESG policies and practices among We hope you enjoy reading the report and learning more about ESG at our top-performing managers. HarbourVest. While these three important letters mean different things to different investors, most agree on this: ESG factors are becoming more We also continued to be a leading global voice in the ongoing conversation prominent in the investment decision-making process and will only grow around diversity and inclusion in our industry. Diverse and inclusive teams, in importance in the years ahead. Through it all, we will remain steadfastly as numerous studies have shown, make faster decisions and deliver better committed to delivering strong financial results, adhering to our ESG overall outcomes for their clients. Diversity is especially important in private values, and being responsible stewards of the capital you have entrusted equity, where it serves as a major catalyst for innovation—the main engine us to manage. of value creation. We have been building and cultivating diverse teams at HarbourVest for more than three decades, and as a result have — Peter Wilson and John Toomey above-average diversity statistics relative to many of our peers (see p. 21). PETER WILSON (left) AND JOHN TOOMEY In 2019, we will deepen our commitment by establishing an internal EXECUTIVE MANAGEMENT COMMITTEE HARBOURVEST PARTNERS Diversity & Inclusion Council.

2 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 3 APPROACH AND GOVERNANCE GLOBAL ESG COMMITTEE

HARBOURVEST’S ESG COMMITTEE is responsible INTEGRATED ESG PROGRAM for overseeing the firm’s ESG Policy, recommending modifications, and ensuring overall implementation across the organization.

REFLECT ESG VALUES IN POLICIES AND PRODUCTS KATHLEEN BACON MARK REALE INTEGRATE ETHICS INTO Where possible, we strive to ensure that our internal policies Managing Director, Investments; ESG Committee Managing Director, Global Head of Human Resources INVESTMENT PROCESSES and investment products embody the spirit of the PRI and Chairperson; Member, Global Investment Committee Mark oversees corporate and employee engagement in the HarbourVest is committed to incorporating ethical business properly reflect our core values. ALIGNED As the Chair of the Committee, Kathleen focuses on setting areas of resource conservation, corporate giving, community standards into all of its investment-focused activities. INTERESTS ESG strategy firm-wide and ensuring implementation. engagement, and diversity and inclusion. He is also GOVERN FIRM-WIDE EFFORTS responsible for our talent management efforts globally. FOSTER GP ADOPTION TRANSPARENCY THROUGH ESG COMMITTEE AND SUPPORT PERFORMANCE A group of senior executives from across the firm assesses We encourage general partners (GPs) to increase their current progress on ESG-focused initiatives and sets the JULIE EIERMANN LAURA THAXTER own commitment to responsible investing by incorporating strategic vision for future projects and enhancements. Managing Director, Chief Data Officer Principal, Global Head of Client Service ESG principles into their investment processes. Julie and her team work to provide the tools and data Laura works with our investment and investor relations PROVIDE TRANSPARENCY necessary to help our investment teams incorporate teams to ensure that ESG initiatives and key updates are TO STAKEHOLDERS ESG considerations into their diligence and communicated in a timely fashion to prospects and clients. We align our interests with those of our investors, investment investment processes. partners, and employees by providing all stakeholders, including clients, with transparency into our decision-making. JAMES KASE JOHN TOOMEY For more than 35 years, HarbourVest Managing Director, Global Head of Investor Relations Managing Director, Investments; Member, Executive Jamie solicits and delivers key market feedback from Management Committee (“EMC”) and Global has sought to align its interests with clients on ESG initiatives and deliverables to ensure Investment Committee those of our investors, investment that the Firm’s activities are aligned with prevailing As a member of the EMC, John provides senior-level ESG concerns and considerations. executive support to the Committee and holds it partners, and staff around the world. accountable to firm-wide goals and objectives. Doing so on a consistent basis has For additional information regarding ESG at HarbourVest, allowed us to proudly build and DIANA McEACHERN CHRISTOPHER WALKER please visit our dedicated web page at www.harbourvest.com. Office Manager, Operations Principal, Primary Investments maintain a culture of ethical behavior, For specific requests or questions, please send an e-mail to Diana and her team focus on ESG best practices As the lead investment representative on the Committee, transparency, and social responsibility [email protected] and we would be happy and driving related efficiency improvements across Christopher focuses on coordinating ESG-focused activities in both our investments and operations. to assist you. HarbourVest’s global operations footprint. and initiatives across HarbourVest’s global primary, secondary, and direct co-investment teams.

4 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 5 COMMITTED TO RESPONSIBLE INVESTING

Every primary fund, secondary transaction, and direct co-investment often requires more resources and negotiation. For traditional opportunities, 2018 ASSESSMENT opportunity we consider undergoes a thorough review of potential ESG risks we verify whether the manager has an existing ESG policy and if they do not, and benefits before being approved. These opportunities go through the encourage them to consider doing so. Our teams also examine the existing filter of our ESG manager scorecard, which allows us to assess GPs’ overall portfolio of assets to identify any ESG concerns. For complex deals, we take a compliance and gives us a framework for providing objective, actionable more proactive approach that closely tracks the manager evaluation process feedback on areas where they can strengthen and improve. Our investment utilized by our Primary team. professionals also hold seats on numerous fund advisory boards, and we utilize DIRECT CO-INVESTMENTS these forums to further engage GPs and LPs in dialogue around ESG issues. Our Direct team actively monitors ESG risks at the company level, focusing PRIMARY FUNDS on the investment opportunity itself, and at the GP level, where we analyze the lead sponsor. Lead sponsors are measured using our ESG scorecard, In the process of conducting diligence on new primary funds, our investment which gives us a view into how the lead sponsor might approach advising a teams utilize our proprietary manager scorecard to assess GPs on more than portfolio company about a potentially significant ESG issue. Target companies 20 factors across the environmental, social, and governance spectrums, are evaluated and ranked across various metrics, including business model, weighing efforts at both the portfolio and corporate level. geographic location, and investment stage. Any concerns discovered during BEST-EVER SCORES PLACE We received our highest grades ever SECONDARY TRANSACTIONS this process are flagged for further evaluation. across the core ESG areas of Strategy Similarly with secondary investments, our teams conduct ongoing REAL ASSETS FIRM IN TOP QUARTILE & Governance, Indirect Investments, assessments on the underlying managers in each deal to gauge their overall Responsible investing is essential to the process of developing successful ESG commitment. The type of diligence we perform depends on whether the FOR INDUSTRY and Direct Investments. real assets-focused businesses and creating value for our clients. Our Real opportunity is a traditional deal—involving a purchase of one or more limited As a signatory to the PRI, our ESG progress is measured annually through an Assets team is acutely aware of the impact investments in areas such as partnership interests from a single seller—or a complex transaction, which independent assessment. In 2018, we’re proud to report that we received our infrastructure and power, energy, and natural resources can have on the HARBOURVEST HARBOURVEST INDUSTRY highest grades ever across the core ESG areas of Strategy & Governance, 2017 SCORE 2018 MEDIAN environment, and actively considers ESG issues as part of its underwriting ESG CATEGORY 2018 SCORE MANAGER ESG SCORECARD Indirect Investments, and Direct Investments, placing us in the top quartile process and ongoing asset management. of private equity managers. Strategy and Governance A A+ A Policy Indirect Investments B A+ C Use of Expertise MANAGEMENT Our Strategy & Governance grade improved in part from having clearly Culture How the GP ensures its ability to Governance INFRASTRUCTURE ENERGY assigned roles and responsibilities among ESG Committee members, as Direct Investments B A B identify and manage ESG risks & POWER and opportunities. well as our ongoing investment in personnel development and training. In the Due Diligence Indirect category, which includes primary fund investments and secondary INVESTMENT PROCESS Invest in best-in-class energy Ownership Exit > Significant investor in clean and transactions, the firm’s monitoring capabilities and high advisory board To view the public version of HarbourVest’s 2018 PRI Assessment Report, How ESG issues are managed efficient energy sources (renewable managers focused on: participation rates contributed to our strong results. On the Direct side, our please click here. To access the firm’s 2018 Private Transparency Report, throughout the investment lifecycle. energy, natural gas) > Water consumption reduction > Focus on operating excellence to integrated approach to responsible investing—particularly how we factor please log on to HarbourVest’s secure Investor Log-in website at https:// REPORTING > New, more efficient technology Reporting maximize energy yield ESG considerations into our due diligence process—helped drive our grade investor.harbourvest.com using your email address and password. Once How the GP measures, manages, to boost production yields and reports ESG performance. > Safety-focused cultures from a ‘B’ in 2017 to an ‘A’ this year. logged in, go to the “News and Update” tab and select “Market Updates”.

6 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 7 COMPANY: Greenlight Planet LOCATIONS: Mumbai, Nairobi, Chicago LEAD GP: Apis Partners 1.3B Greenlight Planet is dedicated to delivering safe, affordable solar energy products to more than PEOPLE WITH NO OR LIMITED 2 billion underserved people around the world. The company distributes its popular Sun King ACCESS TO ELECTRICITY solar-powered lights and phone chargers in more than 60 countries, with a significant focus on Africa and South Asia. Greenlight Planet’s award-winning products have been recognized by the Economist magazine and the World Bank for excellence in sustainable energy. 30M “To see us go from bootstrapping our growth USERS IN AFRICA to being supported by private capital has been AND SOUTH ASIA transformative for our business and the people we serve around the world. This influx of capital has us thinking beyond solar energy, as we believe we can make an impact in areas such as water treatment and communication services 60+ and connectivity.” COUNTRIES WITH OVER 27M RHADIKA THAKKAR DAILY USERS DIRECTOR OF CORPORATE AFFAIRS

Greenlight Planet data

IMPACT INVESTMENT CASE STUDY 8 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 9 COMPANY: Intelex HEADQUARTERS: LEAD GP: JMI Equity 100,000 Intelex is a global leader in the Environmental, Health and Safety, and Quality (EHSQ) software market, delivering a comprehensive and integrated solution to help companies LIVES SAVED IN LAST 5 YEARS across different industries ensure compliance, reduce risk, and improve performance. Intelex’s integrated EHSQ SaaS Platform enables customers to improve their environmental impact, reduce safety incidents, and ensure the quality of their products by providing a management and measurement framework that engages their global workforce to continually improve social responsibility. 24% REDUCTION IN CARBON EMISSIONS “We’re proud to partner with HarbourVest EQUIVALENT OF REMOVING and JMI, both of which have strong enterprise 5 MILLION CARS FROM THE ROAD software portfolios. The capital support we’ve received is helping us accelerate and expand our mission of building a safer, cleaner world. We’re adding staff, developing new products, and opening new offices in key markets to $3.8B better serve our clients across all industries.” HEALTH AND SAFETY-RELATED COSTS AVOIDED MARK JAINE FOUNDER AND CEO Intelex data

IMPACT INVESTMENT CASE STUDY 10 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 11 INTERVIEW WITH CHRISTOPHER WALKER

Our effort to influence and work with GPs Why do US venture funds lag in terms of PROACTIVE PUSH: to improve their ESG programs has two key establishing ESG programs? components. Can you explain each? By their nature, venture funds tend to have much smaller operations than The first phase involved analyzing all of the GPs to whom HarbourVest larger buyout funds, and may not have an immediate need based on the early MOVING THE committed capital in 2017 and 2018, and using our scorecard to assign each development stage of their underlying companies, many of which aren’t involved a score from zero to 4. We completed this work in 2018, and now have a rich in ESG-sensitive industries. Additionally, the cost of hiring dedicated ESG staff database of information to share with our GPs as an impetus for change. For or other resources can be prohibitive. Another factor is that venture funds are ESG METER Phase II, which is underway and will extend through 2019, we plan to provide generally minority investors, so buying a firm for control is not typically a central each manager with a comprehensive blind ranking showing where their ESG part of their business model. This weakens the argument for creating a more program stands relative to its peers. We believe this visual representation will formal ESG policy. be highly effective and gives us an unbiased way to inform our underperforming WITH OUR GPs Did any other findings stand out? GPs so they can take action. We also plan to send ESG plan templates to those Our scorecard measures GPs on three broad categories: management, investment HARBOURVEST STRIVES TO EDUCATE ITS GPs managers considering adoption, and will encourage them to share their views process, and reporting. Given the nature of the asset class and HarbourVest’s and future plans with their broader LP bases. ON THE IMPORTANCE OF INTEGRATING ESG focus on managers that have repeatable, proven processes in place, management PRINCIPLES INTO THEIR INVESTMENT PROCESSES What are some of the top-line findings or and governance scores were quite high across both venture and buyout managers. AND HAS HAD SUCCESS INFLUENCING MANY themes that emerged from the rankings? The overall scores for the reporting category were lower, which could stem in Not surprisingly, the adoption of ESG policies and programs is far from uniform part from the fact that ESG issues have not always been as prevalent as they are TO DO SO. WE TOOK OUR EFFORTS TO A NEW around the world. European managers, particularly those focused on buyouts, today. Many GPs have historically considered ESG reporting issues to be part of LEVEL IN 2018 AS OUR INVESTMENT TEAM USED have the best adoption rates as ESG issues continue to be more front of mind the general turnaround process and haven’t always isolated these issues in their OUR MANAGER SCORECARD TO RANK THE ESG for European GPs and LPs than their US or Asian counterparts. Conversely, reporting to LPs as a separate line item. We are committed to sharing some of the North American-based venture funds generated some of the lowest rankings in leading behaviors from our scorecard analysis with those managers that have the CHRISTOPHER WALKER PROGRAMS OF 178 GPs, UNCOVERING SOME our research. We’re aiming to work with and hopefully help drive improvement most room for improvement. INTERESTING RESULTS IN THE PROCESS. IN THE with those managers that generated below-average scores. It’s worth noting that Can you provide more detail on how you plan FOLLOWING INTERVIEW, CHRISTOPHER WALKER, while many of the managers we met with didn’t have formal plans or dedicated ESG personnel, the majority were interested in learning more and potentially to share the rankings with your GPs? What are A PRINCIPAL ON OUR PRIMARY TEAM AND A adopting a policy. This is where we come in and can add demonstrable value. your expectations? When we show GPs their relative ranking, they will quickly see the areas where MEMBER OF OUR GLOBAL ESG COMMITTEE, they trail and can immediately compare themselves to their peers in the same SHARES SOME OF THE THEMES AND FINDINGS geographic region, thus allowing for clear and relevant comparisons. Given the FROM THIS ANALYSIS, AND EXPLAINS HOW WE For Phase II, which is underway and will competitive nature of GPs within the industry, and the fact that ESG is becoming a core topic in due diligence, we hope this sparks a desire on their part to improve. PLAN TO USE THE DATA TO CONTINUE TO DRIVE extend through 2019, we plan to provide As an LP that is well educated and trained on ESG matters, we feel we can add INCREASED ESG AWARENESS AND ADOPTION each manager with a comprehensive blind value to this improvement process. WITH OUR PARTNERS. ranking showing where their ESG program stands relative to its peers.

12 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 13 SUPPORTING DIVERSE-LED FUNDS HarbourVest made commitments to two female-led funds SUPPORTING EMERGING AND in 2018: Forerunner Ventures Fund IV, which invests in entrepreneurs who are transforming the traditional rules of commerce, and Westlake DIVERSE-LED FUNDS NOTHING VENTURED, Village BioPartners, which focuses on high-quality, early-stage life sciences companies. The well-known managers of each fund offer some thoughts NOTHING GAINED below for women who may be contemplating a career in venture capital. DIVERSE MANAGERS We source more than 150 We are also committed to investing in funds led by diverse individuals as our opportunities each year teams have invested more than $1 billion into funds managed by female or ethnic minority partners. Within our emerging and diverse portfolio, 80% of focused on emerging and the funds have at least one female or ethnic minority partner, and 46% have 1 more than one female or ethnic minority partner. The need to support these diverse-led funds. underserved groups remains as strong as ever.2

HarbourVest has long understood the importance of supporting smaller funds, particularly those that are early in their life cycles or led by diverse managers. While the funds and firms in these market segments can offer compelling In the US, female-led funds FUND: Forerunner Ventures Fund IV FUND: Westlake Village BioPartners potential returns, their distinct attributes require investors to have a dedicated received just $2 billion in FUND SIZE: $360 million FUND SIZE: $320 million sourcing focus, specialized analytical skills, and a proven manager FOCUS: Commerce FOCUS: Life Sciences selection process. venture capital support NOTABLE INVESTMENTS: Jet; Dollar Shave Club; NOTABLE INVESTMENTS: Flexus Biosciences; In all, we have closed on approximately $1.5 billion in commitments to 69 in 2017, a paltry 2% of Glossier; Away TrueNorth Life Sciences; Epizyme private equity funds focused on the US lower middle market.2 This capital will ultimately be deployed to create jobs, manufacture great products, and push the $85 billion total that the US economy forward. Reflecting our appreciation for active governance, 3 “To be a good investor, you have to think “Achieving balanced opportunity in our we hold advisory board seats on 89% of the funds in which we are invested. was invested. differently from others. At Forerunner, industry is going to require tenacity and our staff today is 70% women and 30% teamwork and those values have to SMALL AND EMERGING FUNDS minorities because we know that these start at the top. We can’t hope to build Of the small and emerging funds in our portfolio, 90% have fund capitalizations This stands in stark contrast with the fact that women are controlling more different perspectives bring important strong, stable companies and products of $750 million or less, and 77% are $500 million or less. The fund sizes in this wealth than ever before: By 2020 it’s estimated that women will oversee benefits. For younger women who want if workforces don’t represent society as portfolio range from $27 million to over $4 billion, with an average fund size of more than $72 trillion in assets, close to one-third of total global wealth.3 to get into venture capital, find a role a whole. We need to inspire more young $404 million. Most of these funds are led by managers who are early in their model. Being able to observe and learn women to pursue careers in engineering, life cycles as 28% are Fund I’s and 62% are Fund I’s or II’s. First-, second-, from example every day, and to envision yourself business, and the sciences—and we need to and third-time funds represent 81% of the portfolio.2 confidently in those mentor’s shoes someday, is take proactive measures to support them as they 1 HarbourVest data as of November 30, 2018. Includes all partnership investments with a focus on US-based incredibly empowering.” advance up the management ranks.” funds generally targeting less than $750 million that pursue venture, growth, buyouts, recapitalizations, turnarounds, special situations, and other private markets transactions since January 1, 2008. Includes Purchase Priceperformance Multiple generated by the HarbourVest Horizon team at a prior firm. Three of the four senior decision- makers from the prior firm now make up the HarbourVest Horizon team. KIRSTEN GREEN DR. BETH SEIDENBERG 2 Portfolio data cited encompasses all separately managed account programs on the HarbourVest Horizon FOUNDER FOUNDER platform from January 1, 2002, through November 30, 2018. 3 PitchBook, January 2018

14 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 15 PRODUCED

14M COMPANY: WaterFleet GALLONS OF POTABLE WATER HEADQUARTERS: San Antonio, Texas FOR OIL DRILLING CAMP WORKERS LEAD GP: EagleTree Capital 30 SYSTEMS CURRENTLY IN When one of our longstanding clients wanted an investment solution focused on diversity RECYCLED OPERATION ACROSS and ESG, we partnered with EagleTree Capital, which counts Texas-based WaterFleet among STATE OF TEXAS its most successful portfolio companies. WaterFleet’s mobile water solutions significantly improve workforce living conditions, provide long-term cost savings, and help safeguard 14M the environment. Its ability to provide on-site potable water production and wastewater GALLONS OF DOMESTIC management has significant applications for a variety of industries, including oil field, WASTEWATER construction, and emergency management. 50 “Texas summers are incredibly humid and getting SYSTEMS PROJECTED BY END OF 2018 REDUCED clean water to our oil fields has always been costly and time-consuming. WaterFleet’s capabilities have been transformational—they’ve helped us improve overall 700,000 safety and living conditions for our teams, and their water purification process is a game changer for us.” MILES OF TRUCK TRAFFIC SENIOR DRILLING SUPERINTENDENT PARSLEY ENERGY, MIDLAND, TEXAS

WaterFleet data

IMPACT INVESTMENT CASE STUDY 16 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 17 Sage is focused on the continual development of the most advanced alternative resource solutions in an effort to reduce its carbon footprint— COMPANY: ProgenyHealth from energy and water reduction HEADQUARTERS: Plymouth Meeting, Pennsylvania projects to waste recycling. IMPACT INVESTMENT LEAD GP: Sunstone Partners ProgenyHealth is the market leader in evidence-based care management CASE STUDY solutions for premature and medically complex newborns. The company’s team of neonatologists, pediatricians, and NICU nurses provide continuity of care in collaboration with providers from hospital to home and throughout the first year of life. ProgenyHealth’s broad network ensures that it is measurably improving health outcomes for the smallest, most vulnerable members of society.

COMPANY: Sage Automotive Interiors 1,300 HEADQUARTERS: Greenville, South Carolina LEAD GP: Clearlake Capital HOSPITALS IN 50 STATES Sage Automotive Interiors, a portfolio company of Clearlake Capital, is one of the world’s leading providers of automotive interior materials to automotive Original Equipment Manufacturers (OEM). The company’s longstanding commitment to sustainability has resulted in renewable 6,000 designs and ecologically-friendly business practices. PROVIDERS IN THE US

ProgenyHealth data 85% WASTE RECYCLED

IMPACT INVESTMENT CASE STUDY Sage Automotive Interiors data 18 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 19 CORPORATE HARBOURVEST PROFILE RESPONSIBILITY COMPANIES WITH COMPANIES WITH GENDER DIVERSITY BELOW-AVERAGE ABOVE-AVERAGE DIVERSITY DIVERSITY Our vision is to be the responsible partner of choice for our employees, clients, > GLOBAL STAFF and other key stakeholders. To us, this means being engaged, conscientious corporate citizens in the markets and communities where we operate. It also 26% 45% 47% 53% means ensuring that we are providing our employees with the resources and AVERAGE INNOVATION AVERAGE INNOVATION support they need to be successful—both professionally and individually. REVENUE4 REVENUE4 Our focus revolves around four > MANAGING guiding principles: DIRECTORS > Respecting the interests of our clients, staff, and key stakeholders Due to our longstanding focus 28% 72% > Making responsible investment decisions on building diverse teams, > Holding the organization to the highest HarbourVest is proud to have > SENIOR ethical standards above-average diversity and LEADERSHIP > Caring about our communities (PRINCIPALS, inclusion statistics relative to our SVPs, VPs) and environment 26% 74% peers. Women at HarbourVest DIVERSITY AND INCLUSION: today hold 26% of all senior-level OUR COMMITMENT AND WHY IT MATTERS Diverse, inclusive positions, more than double the ETHNIC DIVERSITY Since our founding in 1982, we have consistently focused on building and > 74% OF OUR WORKFORCE teams make cultivating teams that reflect the business opportunities and clients we engage industry average of 12%, and IS WHITE, AND 26% ARE with around the globe. We provide a broad range of career opportunities faster decisions nearly one-third (28%) of our ETHNIC MINORITIES and empower our diverse workforce by including them in all aspects of our and deliver better managing directors are women. Ethnic minority representation decision-making process. We lead by example and advocate for increased across HarbourVest WHITE overall outcomes diversity and inclusion across our industry. Collectively across the firm, globally includes: ASIAN 5 HISPANIC for our clients. Why this level of commitment? We know from past experiences 47% of our staff is female. Managing Directors (17%) BLACK that diverse, inclusive teams make faster decisions and deliver better overall Principals, SVPs, VPs (21%) OTHER outcomes for our clients. In fact, numerous studies have shown that diversity Office Heads (50%)6 is a major catalyst for innovation, one of the primary drivers of value creation in private equity. Companies that report above-average diversity on their senior 4 The Boston Consulting Group, “How Diverse Leadership Teams Boost Innovation”, 2018. leadership teams generate nearly twice as much innovation-based revenue as 5 HarbourVest data, as of September 30, 2018. 4 those firms with below-average diversity at the management level. 6 Not including Boston.

20 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 21 LEADERS IN DIVERSITY OPERATIONAL IMPROVEMENTS In addition to being responsible investors, we also strive to be conscientious, ADVOCACY & RECOGNITION “LPs need to push the agenda engaged corporate citizens. With nine offices situated in key markets around the world, we understand that our operational ESG footprint matters, and we Several senior HarbourVest leaders serve on the boards of leading diversity by asking firms during due make efforts every year to become more ecologically friendly across various and inclusion organizations. diligence and advisory board parts of our business. SOME HIGHLIGHTS FROM 2018 Senior Advisor GEORGE ANSON was meetings what they’re doing named Chair of -based non-profit to increase diversity in their The firm saved nearly 80 trees through organization Level 20 in November 2018. investment teams…” paper recycling efforts during office moves Level 20 advocates for more women to serve in senior private equity leadership CAMBRIDGE JUDGE BUSINESS SCHOOL During the moves, we donated all serviceable roles. The group is active in both the UK and AND LEVEL 207 furniture to a local nonprofit that redistributes across Europe. www.level20.org used and surplus building materials, making it possible for low- and moderate-income homeowners to repair and care for their homes

Managing Director SANJIV SHAH is Installed high-efficiency LED lighting throughout Co-Chair of the Board of Directors for our Boston office the Association of Asian-American Investment Managers, which works to promote the advancement of Asian Americans and Pacific TALENT DEVELOPMENT Islanders in investment management. He also serves on AAAIM’s executive committee. At HarbourVest, we believe strongly that our people are our greatest asset www.aaaim.org —and that their success is contingent upon having candid and continuous communication around how they are performing. Our Performance and 76,000 Development Process (“PDP”) is essentially a partnership between employees and their managers. PDP focuses on achieving great results by ensuring that SALLY SHAN, a Managing Director based in our CUPS & BOTTLES REMOVED every employee has the information, resources, and support they need to office, founded sHero Fellowship in 2014, FROM ANNUAL WASTE STREAM succeed and reach their full potential. an organization that seeks to cultivate a spirit of leadership and entrepreneurship among China’s > Employees and managers draft yearly goals aligned to enterprise priorities > Toronto-based Managing Director Senia Rapisarda (second from left) In 2018, we permanently young female future leaders. For her efforts, the > Transparency and communication around performance shared through accepts the Diversity Leader of the Year Award from McRock Capital, removed all plastic cups and Aspen Institute described her as a “trailblazer quarterly feedback sessions which recognizes those firms “that have demonstrated a consistent seltzer bottles in our Boston whose business acumen is changing the norms of pattern of breaking barriers to promote workplace diversity and office and gave each team > Year-end performance conversations include employee self-assessment traditionally majority-male venture firms in China.” inclusion initiatives.” member an ecologically- and manager assessment www.sherochina.com friendly tumbler.

7 “Women in Private Equity”, British Private Equity & Venture Capital Association and Level 20, May 2018

22 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 23 COMMUNITY ENGAGEMENT 2018 VOLUNTEER WEEKS ORGANIZATIONS SUPPORTED HarbourVest and its global staff take active roles in supporting many worthy causes and organizations in their communities. Some common causes BEIJING HONG KONG include youth mentoring, child and adult special education, gender diversity, Qing Quan Foundation (Mentoring) Food Angel (Hunger) poverty and homelessness, women’s leadership, the arts, and various St. Mary’s Home for the Aged (Adult Welfare) BOGOTÁ health causes. This commitment to doing good by others flows through the Banco de Alimentos Bogotá (Hunger, Immigration) LONDON organization, from the top levels of management through all levels of the firm. The Promoción Humana Foundation (Cultural) Moo Canoes (Environmental) Volume 48 (Corporate Responsibility) NEW MATCHING GIFT PROGRAM BOSTON To further support our team’s generosity and commitment to giving back, Community Music Center of Boston (Arts) Community Servings (Terminally/Chronically Ill) Bangbae Senior Welfare Service Center we introduced our first corporate matching gift program in 2018 through Massachusetts Society for the Prevention of (Adult Welfare) Benevity, a multi-function giving platform. Through the program, the firm Cruelty to Children (Child Welfare) Bukhan Mountain National Park will match charitable donations up to $1,000 per employee for each Room to Grow (Child Welfare) (Environmental) This commitment to doing good by Rosie’s Place (Women’s Homelessness) calendar year. St. Francis House (Homelessness) others flows through the organization, Leket (Food Salvage) GLOBAL VOLUNTEER WEEKS The Franklin Park Zoo (Animal Welfare) from the top levels of management We held our firm-wide Global Volunteer Weeks in June and October, during The Food Project (Hunger) The Rose Kennedy Greenway (Environmental) through all levels of the firm. which time staff in our nine global offices worked together during business International Social Services Japan WayPoint Adventure (Adult Education) (Child Welfare) hours to support a wide range of local causes. In 2018, our teams donated more than 1,700 hours to 23 different organizations. TORONTO Daily Bread Food Bank (Hunger) WoodGreen (Social Service)

24 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 25 2018 VOLUNTEER WEEKS

23 2018 VOLUNTEER WEEKS ORGANIZATIONS SUPPORTED

1,723 >33K(USD) TOTAL HOURS FINANCIAL CONTRIBUTIONS

26 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 27 OUTREACH AND EVENTS ASSOCIATION OF ASIAN-AMERICAN KAYO WOMEN’S PRIVATE MARKETS SUMMIT HarbourVest staff members regularly participate in ESG-focused INVESTMENT MANAGERS OCTOBER 3 / CHICAGO industry events around the world. Our engagement in these forums REGIONAL & ANNUAL CONFERENCES Amanda Outerbridge, a Managing Director on our Boston-based primary allows us to share our own insights and learn leading behaviors APRIL 9 / BOSTON | SEPTEMBER 19 / LOS ANGELES investment team, participated on a panel at this event with other female investment leaders where the topics ranged from manager selection to asset allocation to and strategies from other industry practitioners. We took part in the Managing Director Sanjiv Shah moderated panels at these events focused sub-sectors to keep an eye on in 2019. following events, among others, in 2018 where our team members primarily on investment management opportunities with minority and female- owned enterprises. discussed issues such as investing; post-investment reporting and monitoring; the benefits of having diverse and inclusive teams; impact WOMEN IN PRIVATE EQUITY FORUM investing; and how firms can convert ESG policy into real action. IMPACT CAPITAL MANAGERS SPRING CONFERENCE NOVEMBER 28 / LONDON Managing Director Valérie Handal and Vice President Abigail Rayner each MAY 30 / CHICAGO participated in PEI’s Women in Private Equity Forum in London. The event, Sanjiv Shah participated on a panel that shared best practices and strategies co-hosted with the Women in Infrastructure Forum, brings together more LATAM LP CONFERENCE around impact investing, including the need to balance expectations for financial than 300 investment professionals to discuss the latest issues affecting the MARCH 7 / BOGOTÁ, COLOMBIA returns versus creating impact. industry and strategies for increasing diversity within the asset class. Managing Director Kathleen Bacon was a keynote speaker at this annual conference sponsored by the Latin American Private Equity and Venture Capital Association (LAVCA). Kathleen’s presentation focused on the importance of having a sustainable ESG framework in place, and how more investors globally are making RESPONSIBLE INVESTMENT FORUM EUROPE ESG considerations a higher priority in their decision-making process. JUNE 12 / LONDON Managing Director Kathleen Bacon delivered a presentation at this event titled Providing Hard Evidence of the Financial Value of ESG, during which she shared Bacon’s remarks made an best-in-class ESG management strategies, spoke about breaking the link between impression on one attendee, risk and return, and explained how HarbourVest works with its portfolio companies who tweeted: to emphasize the importance of ESG. 2018 > HarbourVest Managing Director Kathleen Bacon @HarbourVest Kathleen Bacon: ESG shares her thoughts on ESG at the second annual 2018 CHINA CONFERENCE cannot be an afterthought – it has to be Latin American LP Conference in Bogotá, Colombia. SEPTEMBER 21 / BEIJING embedded in the firm. #PRI principles Beijing-based Principal Shumin Gong participated on a panel with five other female fund-of-funds leaders from across Asia Pacific. The group took the opportunity to discuss investment management techniques, advice they could > Principal Shumin Gong (far left), participates on a panel with give to young women considering a career in the private markets, and how to other Asian female fund leaders at the 2018 China Fund of promote more women in senior leadership positions globally. Funds Conference in Beijing.

28 / HARBOURVEST 2018 ESG REPORT HARBOURVEST 2018 ESG REPORT / 29 HarbourVest is an independent, global private markets investment specialist with more than 30 years of experience and more than $60 billion in assets under management. The Firm’s powerful global platform offers clients investment opportunities through primary funds, secondary transactions, and direct co-investments in commingled funds or separately managed accounts. HarbourVest has more than 400 employees, including more than 100 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $34 billion to primary funds, completed over $18 billion in secondary purchases, and invested $9 billion directly in operating companies. Partnering with HarbourVest, clients have access to customized solutions, longstanding relationships, actionable insights, and proven results.

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