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, $466,198 remains in escrow. Performance Snapshot Six months to 31 July 2020 Strategic Report REPORT STRATEGIC Net Asset Value (“NAV”) per Share Growth 1 Performance Snapshot 2 Chair’s Statement NAV per Share Growth ($) 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 REPORT GOVERNANCE FY 2020** $27.58 16 Managing the Balance Sheet H1 2020* $25.80 17 Managing Costs 18 Managing the Portfolio 12 months to 31 January 2020: +14.5% | Six months to 31 July 2019: +7.1% 20 Principal Risks and Uncertainties Annualised Outperformance of FTSE AW TR Since Inception (2007) Supporting Information 22 About HarbourVest +3.4% 23 Our Value Creation Cycle 24 The Phases 26 Manager Spotlight 28 Top Ten Direct Companies STATEMENTS FINANCIAL INTERIM Total Shareholder Return Governance Report Share Price ($) 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.