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Annual Results Presentation12 Months to 31 January 2019
HarbourVestGlobal PrivateEquity Ltd
30 May 2019
//
Outline
2
Tenth consecutive year of net asset value (“NAV”) growth
Chairman’s Introduction
The Case for HVPE
Annual Results – 12 Months to 31 January 2019
Longer Term Performance
Global Private Markets
Key Takeaways
Secondary Market Perspectives
Appendix
Chairman’s Introduction
3
Sir Michael Bunbury
The Case for HVPE &Annual Results
4
Richard HickmanDirector, Investment and Operations
//
Complete private markets solution
Provides access to a broad range of private markets opportunities
Well-diversified to limit downside risk from individual holdings
Invests in and alongside HarbourVest funds
5
HVPE is a $1.9bn portfolio of 1,000+ material exposures within a listed wrapper
Note: Holdings in publicly-traded companies, often resulting from IPOs in the private equity portfolio, represent 10% of HVPE’s investment portfolio value.*HVPE introduced an additional US dollar share price on 10 December 2018; from this date onwards, the actual US dollar share price, as reported by the London Stock Exchange, has been used. Past performance is not necessarily indicative of future results.
$7.61
$8.65$10.24 $11.42 $12.46
$14.38$15.86 $16.75
$18.47$21.46
$24.09
$9.25
$5.00 $6.18 $6.37$8.66
$10.75$12.73 $12.41
$15.03$17.77 $18.75
NAV Per Share Share Price*
2009 2011 2012 2013 2014 2015 2016 2017 2018 20192010
//
Portfolio cannot easily be replicated
6
Structured to provide a complete, fully-managed private markets portfolio
HVPE provides access to private companies typically available only to institutional investors
Buying shares in HVPE puts an investor on a level playing field with those institutions
Aim is to deliver material outperformance of public markets over the long term
HVPE
46 HarbourVest Funds and 7 Secondary Co-InvestmentsPrimary
45%Secondary
31%Direct24%
GP1
GP2
GP3
GP4
Holdings in publicly-traded companies, often resulting from IPOs in the private equity portfolio, represent 10% of HVPE’s investment portfolio value. *The top 1,000 companies represent 82% of NAV. In total there are 8,704 companies in the portfolio. Figures as at 31 January 2019.
//
Improving share trading liquidity
7
Member of the FTSE 250 index with the scale to meet the needs of all investors
Liquidity is good and improving
HVPE has substantial stakeholder engagement
Award-winning reporting, communication, and shareholder events
Source data: Bloomberg. Average trading levels (mean, median, modal) based on the period 1 February to 31 January for each reported year.Past performance does not indicate future results.
60,458
132,482
67,857 71,277
16,11734,492 30,109
44,935
0 5,000 27,706
73,079
2016 2017 2018 2019
Mean Median Modal
//
Evolving shareholder profile
8
Our focus is on delivering value to shareholders
HVPE is a high-quality, unique offering
Represents a fully-managed programme for buy-and-hold investors of all types
Increasing shareholder base in UK, Europe, and Asia since listing on Main Market of LSE
Source data: JPMC Shareholder Register. As at May 2019. Past performance does not indicate future results.
43.7%
66.7%
+23.0%
47.8%
20.1%
-27.7%
8.5%13.2% +4.7%
UK US OtherUK US Other UK US Other
SEPTEMBER 2015 MAY 2019 MOVEMENT
//
Strategic diversification
9
HVPE provides well-balanced global exposure to private markets
HVPE portfolio comprises multiple uncorrelated elements
Enhances consistency of returns over time
Aim is to optimise returns over the long run whilst managing downside risk
STAGE STRATEGY GEOGRAPHY INDUSTRY
Buyout 58%
Venture 32%
RA & Mezz 10%
Primary 45%
Secondary 31%
Direct 24%
US 57%
Europe 20%
Asia 15%
ROW 8%
24%
16% 15%
12% 11% 10% 7%5%
Tech
nolo
gy
Con
sum
er
Med
ical
Busi
ness
Ser
.
Indu
stria
l
Fina
ncia
l
Ener
gy
Med
ia
Diversification as at 31 January 2019.
The Investment Manager,HarbourVest Partners
10
//
HarbourVest has a global platform
11
One of the longest established firms in the industry
As of September 30, 2018. Based on primary, secondary, direct and real assets commitments made by HarbourVest.Indicates HarbourVest team location.
Expertise across capital structure (equity and debt) and investment types
PRIMARY SECONDARY DIRECT CO-INVEST REAL ASSETS
$35.6 billion committed $19.8 billion committed $9.5 billion committed $2.0 billion committed
London
Beijing North AmericaFirst investment 1982$38.1 billion committed
Latin AmericaFirst investment 1994$0.7 billion committed
EMEAFirst investment 1984$21.5 billion committed
Asia PacificFirst investment 1984$6.5 billion committed
TorontoBoston
Bogotá
Tel Aviv
Hong Kong
Seoul Tokyo
Dublin
//
Record of consistent outperformance
12
HarbourVest has outperformed the broader market in the majority of vintage years
As of December 31, 2018. HarbourVest returns reflect the combined return (pooled IRR) of all primary, secondary, and direct investments in the HVPE portfolio in that vintage year.Private Equity returns reflect the combined return (pooled IRR) of all private equity investments included in the Burgiss Manager Universe for that vintage year.Past performance is no guarantee of future returns.
11.2% 10.8% 11.0%
14.0%
17.4%15.9%
20.6% 21.1% 21.0% 20.3%
23.5%
15.2%
6.3%
9.0%
12.3%
15.1%
12.6%
16.4%15.3%
12.5%
16.7%15.1% 15.3%
10.8%
0%2%4%6%8%
10%12%14%16%18%20%22%24%26%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 06-'16
HarbourVestPrivate Equity Pooled
Vintage Year
2006-2011
// Returns above private equity average in 3 of 6 vintage years
2012-2016
// Returns above private equity average in all vintage years
HVPE Annual Results –12 Months to 31 January 2019
13
//
Performance highlights
14
Tenth consecutive year of net asset value growth
NAV growth in year of 12.3% in USD (21.5% in GBP)
Share price increase of 13.9% in GBP
Improved liquidity in share trading
Total new commitments of $730.0m made to five HarbourVest vehicles
Realised uplifts continued above 30%
Net investor; new investments ($396.2m) exceeded distributions ($306.6m)
Full report can be viewed on www.HVPE.com
//
Commitment, Investment, & Distributions
15
Net investor during the period (in millions, except % data)
Past performance does not indicate future results.
FINANCIAL SUMMARY 31 JANUARY 2019 31 JANUARY 2018
Investment Portfolio $1,760.2 $1,452.2
Commitments to HarbourVest funds $730.0 $339.8
Total Investment Pipeline $1,562.7 $1,237.5
Cash Invested in HarbourVest funds $396.2 $312.7
% of Investment Pipeline 28.3% 25.7%
*Pct. of average Investment Pipeline over period
Distributions Received $306.6 $405.1
% of Investment Portfolio 19.1% 29.5%
*Pct. of average Investment Portfolio over period
//
Commitments to 31 January 2019
16
Total of $730.0 committed to five HarbourVest funds
HARBOURVEST FUND DESCRIPTION TOTAL AMOUNT
HarbourVest Fund XI US-focused fund-of-funds $385.0m
2018 Global Fund Global multi-strategy fund-of-funds $70.0m
HarbourVest Adelaide Real assets vehicle $150.0m
Secondary Overflow III Secondary co-investment vehicle $75.0m
HarbourVest Co-Invest V Global co-investment fund $50.0m
TOTAL $730.0m
//
Investment Portfolio movement
17
$218.4m of investment portfolio value growth
Direct co-investments outperformed Primary and Secondary investments
Venture and growth equity led all other stages
US and Asia Pacific were the strongest performing regions
Past performance does not indicate future results.
STRATEGY STAGE GEOGRAPHY
11.4% 11.3%
14.7%
10.2%
16.2%
10.5%
19.5%
10.5%
13.1%10.8%
3.0%
Prim
ary
Seco
ndar
y
Dire
ct c
o-in
vest
men
t
Buyo
ut
Vent
ure/
Gro
wth
Equ
ity
Rea
l Ass
ets
Oth
er
US
Euro
pe
Asia
Pac
ific
RO
W
//
Buyout portfolio metrics
18
Analysis of 948 companies representing 31% of total NAV
Weighted average EBITDA increase over the previous year is 13%
76% of the underlying companies increased EBITDA during the year
Approximately 74% of these companies are growing EBITDA by more than 10% per annum
Overall valuation multiple is 11.2x EBITDA
Overall debt multiple is 4.5x EBITDA
The sample of portfolio companies used for this analysis changes period on period, based on the information available to the Company at the time. Past performance does not indicate future results.
//
Realisations timed to maximise value
19
Different strategies perform at different points in the cycle
A broad spread of vintage years supports a steady flow of distributions
The 2014 vintage was the most significant contributor at 15%
Crisis-era vintages are now largely realised
Distributions calculated as a percentage of HVPE’s investment portfolio, based on reported values at 31 January 2019. Past performance does not indicate future results.
Prim
ary
Seco
ndar
y
Dire
ct c
o-in
vest
men
t
Buyo
ut
Vent
ure/
Gro
wth
Equ
ity
Rea
l Ass
ets
Oth
er
US
Euro
pe
Asia
Pac
ific
RO
W
10%8%
17%
8%
2%
4%
8%
6%
10% 10% 10%
6%
1%0%
3%
5%
8%9%
2%
4%
10%
7%
5%
15%14%
8%9%
1%
< 2006 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2018 2019
Mature Growth Investment
//
Consistently strong uplift performance
20
Seven consecutive years of uplifts of at least 30% on carrying value on exit
Weighted average uplift of 41% achieved (average multiple of 3.9x cost)
Realisations from the venture portfolio (6.3x) and IPOs (5.3x) were particularly strong
Uplift average of 39.7% over the last seven years
This analysis represents a subset of the transactions and does not represent the portfolio as a whole. Additionally, it does not reflect management fees, carried interest, and other expenses of the HarbourVest funds or the underlying managers, which will reduce returns. Past performance is not necessarily indicative of future returns. In 2019, Accolade Wines and Envirotainer, which are currently held at blended multiples of 94.4x and 176.8x respectively, represent extraordinary returns and are excluded from the analysis due to the large positive impact they have on the weighted average multiples. If included, the total return multiple on the sample is 10.1x and the Buyout and M&A return multiples would be 11.2x and 11.4x respectively.
49.0%
40.5%37.0%
39.5%
50.0%45.2%
42.0%
23.8%
38.0%
30.0% 31.0%
40.6%
3.2x
6.3x
3.6x
5.3x
3.9x
ANNUAL WEIGHTED AVG. UPLIFTS (TOTAL) WEIGHTED AVG. UPLIFTS WEIGHTED AVG. MULTIPLES
2012
2013
2014
2015
2016
2017
2018
2019
Buyo
ut
Vent
ure
M&A
IPO
Buyo
ut
Vent
ure
M&A
IPO
TOTA
L
2019
//
Well-managed cash movements
21
HVPE benefits from relatively predictable cash flows
A closed-ended investment company must maintain a strong balance sheet
HVPE is able to invest through the cycle to optimise returns
New, enlarged credit facility with improved terms ensures access to funding as needed
-$600
-$500
-$400
-$300
-$200
-$100
$0
$100
$200
$300
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Absolute-$85m
Conversus-$94m
31 January 2019$156.6m
-$97 -$128-$74
-$141
-$251-$199
-$163 -$162-$211
-$270 -$313
-$396
$48$83 $52
$137$181 $204
$257
$356 $363
$251
$405
$307
-$500
-$400
-$300
-$200
-$100
$0
$100
$200
$300
$400
$500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Calls ($m)Distributions ($m)Net Position ($m)
Cash position and credit facility position as at 31 January 2019. Cash flow profile based on annual performance disclosed in HVPE’s annual reports. Past performance does not indicate future results.
Cash Position ($m)Credit Facility ($m)
CASH POSITION & CREDIT FACILITY CASH FLOW PROFILE
//
New, enlarged credit facility
$600m multi-currency credit facility provided jointly by Credit Suisse and Mitsubishi
Initial term to January 2026; five year evergreen structure with two-year no-notice provision
Blended fee rate of 95 bps per annum on the undrawn amount
Margin over Libor on the drawn amount scales as follows
• 250 bps up to $300m; and 290 bps on incremental amount in excess of $300m
22
Improved terms for access to funding, should it be required
Past performance does not indicate future results.
//
Prudent balance sheet
23
Balance sheet is strong and appropriate for HVPE’s unique investment profile
The 12 month range for each ratio includes monthly estimate data, from 31 January 2018 through to 31 January 2019. Blue circles represent where that respective ratio currently sits within that range, and the yellow diamond represents the median ratio within the period.
Past performance does not indicate future results. For illustrative purposes only.
TOTAL COMMITMENT RATIO ROLLING COVERAGE RATIO COMMITMENT COVERAGE RATIO
12 month range 12 month range 12 month range157% 177% 72% 96% 42% 62%
Total exposure to private markets investments as a percentage of NAV
A measure of medium-term commitment coverage
Short-term liquidity as a percentage of total investment pipeline
173%(Jan 2018: 157%)
72%(Jan 2018: 85%)
48%(Jan 2018: 61%)
//
Leverage at the HarbourVest fund level
24
Continuous monitoring and analysis of embedded leverage
HarbourVest funds utilise credit lines for bridging, project finance, and fund recaps
The facilities are capped at 20%-30% of uncalled commitments from LPs
HVPE’s total look-through exposure was $272.6m at 31 January 2019
Current amount is an increase of $33.9m from the $238.7m at 31 January 2018
The amount of embedded leverage is considered in scenario testing and commitment plans
Past performance does not indicate future results.
//
Managing costs
25
The Total Expense Ratio (TER) has trended downwards since inception
Reflects the total cost incurred by the Company for managing its portfolio
The TER, net of interest income, is 2.37% for the 12 months to 31 January 2019
This is a reduction compared to the 2.90% reported in the previous annual report
The Total Expense Ratio (TER) is calculated over average NAV. HVPE’s Total Expense Ratio of 2.37% is comprised of Net Operating Expense Ratio, 1.50% plus Carried Interest, 0.87%.Past performance does not indicate future results.
FINANCIAL SUMMARY 31 JANUARY 2019 31 JANUARY 2018Recurring Operating Expenses 0.62% 0.66%
HarbourVest Fund Operating Expenses 0.26% 0.22%
Management Fees 0.83% 1.01%
Operating Expense Ratio 1.71% 1.89%
Interest Income (0.21%) (0.13%)
Net Operating Expense Ratio 1.50% 1.76%
Carried Interest 0.87% 1.14%
Total Expense Ratio 2.37% 2.90%
Longer Term Performance
26
//
HVPE in context
27
Many funds are trading at significant discounts
Discount/premium data as at 23 May, 2019. Source: J.P. Morgan Cazenove Investment Companies Daily Interactive Stats.*Source: Canaccord Genuity, ‘Strong fundamentals and an elegant solution to ongoing de-equitization’. Annualised total returns based on 9 years to 31 December 2018.Past performance does not indicate future results.
HVPE is the only fund to narrow its discount over the last 12 months
The discount is now inside of the listed fund-of-funds average
ANNUALISED TOTAL RETURNS* SHARE PRICE DISCOUNTS TO NAV: 2019 & 2018
-21.3%
-17.5%
-17.4%
-16.3%
-16.1%
-15.9%
-14.3%
-10.9%
-0.1%
-21.2%
-13.7%
-10.9%
-11.5%
-12.8%
-19.8%
-13.0%
10.2%
0.8%2018 2019
14.6%13.4%
12.4% 12.3% 12.2%11.1% 11.0%
10.4% 9.9% 9.6%
7.0% 6.8% 6.5%
HVP
E
Pant
heon
NB
Priv
ate
Equi
ty
Stan
dard
Life
Hg
Cap
ital
LPE
Avg.
Ret
urn
ICG
Ent
erpr
ise
MSC
I AC
WI
BMO
FTSE
Inv.
Cos
FTSE
All
S.
MSC
I Eur
.
JPEL
Based on returns for the 9 years to 31 December 2018
HVPE
FOF Avg.
JPEL
ICG
Pantheon
NB PE
S. Life
BMO
Hg Capital
//
Share price outperformance
28
Over the last 12 months, HVPE has outperformed its peer group
Source data: Refinitiv Datastream. Data for each fund is share price total return with dividends re-invested. Analysis based on period 1 May 2018 to 24 May 2019.Past performance does not indicate future results.
80.00
85.00
90.00
95.00
100.00
105.00
110.00
115.00
120.00
125.00
130.00
May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19
HVPE NBPE Hg Capital Pantheon S. Life ICG BMO
//
Private Markets in the Press
29
Recent coverage has been favourable to HVPE’s proposition
The Times, 20th February 2019
The FT, 2nd April 2019
Daily Telegraph, 11th May 2019
Daily Mail, 20th October 2018
MoneyWeek, 4th April 2019
//
HVPE’s long-term performance
30
NAV per share outperformance of FTSE AW TR of 3.8% annually since inception
*Compound annual of future returns growth rate calculated through 31 January 2019. The underlying data used for monthly calculations is based on estimates. January data (all years) based on reported Annual Results. **Specialist Fund Market (now the Specialist Fund Segment) Past performance is not necessarily indicative of future results.
Jan 2008
Jan 2009
Jan 2010
Jan 2011
Jan 2012
Jan 2013
Jan 2014
Jan 2015
Jan2016
Jan2017
Jan2018
Jan2019
HVPE NAV $10.39 $7.61 $8.65 $10.24 $11.42 $12.46 $14.38 $15.86 $16.75 $18.47 $21.46 $24.093.9% (26.8%) 13.7% 18.4% 11.5% 9.1% 15.4% 10.3% 5.6% 10.3% 16.2% 12.3%
FTSE AW TR 242.2 140.3 200.3 240.7 233.1 269.5 305.0 327.9 307.7 365.4 468.4 435.2(8.1%) (42.1%) 42.8% 20.1% (3.2%) 15.6% 13.2% 7.5% (6.2%) 18.8% 28.2% (7.1%)
$10.39
$7.61$8.65
$10.24$11.42
$12.46
$14.38$15.86
$16.75 $18.47$21.46
$24.09
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
$22.00
$24.00
HVPE NAV ($)HVPE Share Price ($)FTSE AWI TR
$18.75
Euronext SFM** Main Market
Cumulative Return (6 Dec 07 – 31 Jan 19)
HVPE NAV ($) 140.9%
HVPE Share Price TR ($) 85.9%
FTSE AW TR 61.2%
Global Private Markets
31
//
Global private equity fundraising ‘09-’19
32
The strong fundraising cycle continues
Source data: Pitchbook. As at April 2019. Past performance does not indicate future results.
0.0
0.2
0.4
0.6
0.8
1.0
1.2
'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '18Q1
'19Q1
Avg.
Fund
Size
(USD
Billi
ons)
Buyout VCBy Strategy
'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '18Q1
'19Q1
0
100
200
300
400
500
600
Capit
al Ra
ised,
USD
Billio
ns
US Europe Asia
Total ’09-’13:$1.0 trillion
Total ’14-’18:$1.8 trillion Avg. buyout fund
size up 70% ’13-’18
By Region
//
Global private equity deal value ‘09-’19
33
Increased deployment as prices remain stubbornly high
Source data: Pitchbook. As at April 2019. Bloomberg as at 31 December 2018. LCD Leveraged Buyout Review for US and Europe, Q4 2018. Past performance does not indicate future results.
'09 '10 '11 '12 '13 '14 '15 '16 '17 '180
200
400
600
800
1,000
1,200
Deal
Value
, USD
Billi
ons
US Europe Asia
Total: $1.1tn
Total: $3.8tn’14-’18CAGR
38%
14%
18%
Asia
Europe
US
6.1x 6.3x5.1x
4.3x5.8x 5.5x
3.6x 3.4x
3.6x 5.1x
4.8x 5.4x
9.7x 9.7x
8.7x9.3x
10.6x 10.9x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0xDebt/EBITDA Equity/EBITDA
‘07 ‘12 ‘18US EU US EU US EU
By Region US/Europe Buyout Multiples
//
Global private equity deal exits ‘09-’19
34
Strong exit markets sustaining positive LP cashflows
Source data: Pitchbook. As at April 2019.
'09 '10 '11 '12 '13 '14 '15 '16 '17 '180
100
200
300
400
500
600
700
800
900
1,000
Exit V
alue,
USD
Billio
ns
US Europe Asia
Total: $1.9 trillion
Total: $4.4 trillion
By Region
//
15-year benchmark IRR vs public markets
35
Long-term outperformance is a global phenomenon
Source data: Burgiss All PE Benchmark Pooled IRR vs Index Comparison returns at 31 December 2018.
US
12.4%
8.3%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Trail
ing P
eriod
Retu
rn (I
RR %
)
Burgiss US PE S&P 500
+410 bps
Europe Asia
13.6%
7.2%
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Burgiss Europe PE MSCI Europe
+640 bps
12.8%
5.2%
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Burgiss Asia PE MSCI Asia
+760 bps
Key Takeaways
36
//
Key takeaways
37
Reporting continued high performance across all key metrics
Strong, double-digit NAV per share returns over the 12 months
Compound annual NAV per share growth of 12.2% in USD over the last 10 years
Outperformance of other listed private equity firms and the public markets
Represents a fully-managed programme for buy-and-hold investors of all types
Visit us at www.hvpe.com
Secondary Market PerspectivesGreg Ciesielski, Principal
May I 2019
CONFIDENTIAL
For financial adviser use only, not for use with the general public
As of December 31, 2018. Source: Thomson Reuters, Greenhill Cogent, Evercore, HarbourVest deal flow statistics
39
Attractive secondary market characteristics
Market Size / Growth> $74 billion market> 25% annual growth rate
since 2010
> Diversified by stage, vintage, year, and geography
> Transaction sizes ranging from $1 million to > $1 billion
Diversified Seller Pool
Broad Range of Assets Diverse Buyer Strategies
> Over 800 sellers per annum> Wide range of motivators
> Traditional vs. complex> Diversified vs. concentrated> Less mature vs. tail end
CONFIDENTIAL
For financial adviser use only, not for use with the general public
As of December 31, 2018. Source: Greenhill Cogent, Secondary Market Trends & Outlook, January 2019 (market volume), HarbourVest estimates (forecast range), Preqin (primary capital raised)For illustrative purposes only. Past performance does not indicate future results.
Secondary market growth
40
’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19E ’20E ’21E ’22E0
20
40
60
80
100
120
140
$ Bi
llions
Incremental Growth Drivers
Increasing number and volume of GP-Led transactions
Investors embracing proactive portfolio management
$2.3 trillion raised in primary capital over the past 5 years
Forecast Range
$90B
$120B
Secondary Market Deal Volume
CONFIDENTIAL
For financial adviser use only, not for use with the general public
Historically low loss rates and strong returns versus traditional private equity investments
Secondary investments – Attractive risk-reward profile
Percentage of Funds Returning < 1.0x
41
> Fewer secondary funds have lost capital for investors than any other private equity strategy
> Increased visibility and the ability to purchase at a discount to market value provide strong downside protection
> Despite lower risk, secondaries offer compelling absolute and relative returns
IRR Dispersion2002-2013 Vintage Year Funds
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Global Secondary Global Buyout /Venture Capital
1st Quartile
Median
3rd Quartile
1st Quartile
Median
3rd Quartile
1.8%
20.5%
0%
5%
10%
15%
20%
25%
Global Secondary Global Buyout / Venture Capital
Source: Preqin, as of September 30, 2017. Data in left chart is based on Preqin’s database of 8,000+ private equity funds, including 204 secondary funds. Data in right chart is based on 2002-2013 vintage funds. This industry data reflects the fees, carried interest, and other expenses of the funds included in the data set. The fees, carried interest, and other expenses borne by investors in a HarbourVest fund / account may be higher or lower than the fees and expenses of the funds reflected in the data set. Past performance is not a reliable indicator of future results.
CONFIDENTIAL
For financial adviser use only, not for use with the general public
Shown for illustrative purposes only
HarbourVest focuses on the more inefficient parts of a growing complex market
42
Expanding universe of secondary market opportunities
COMPLEX
StructuredLiquiditySolution
Team Spin-Out /
Buy-In
TRADITIONAL
Public Market
HIGH COMPLEXITYLOW COMPETITION
LOW COMPLEXITYHIGH COMPETITION
LP Tender
Asset Sale
LP Interests
GP-Led
Recap
Appendix
43
//
Team overview
44
The core team is split between Boston and London
HVPE’s team has the complementary skills needed to run a high-quality fund
41 years with HarbourVest49 years in the industryResponsible for overseeing primary, secondary, and direct co-investments
23 years with HarbourVest28 years in the industryLeads secondary investment in EuropeA member of the EMC
D. Brooks ZugSenior Managing Director and Founder,HVPE Director
Peter WilsonManaging DirectorSecondary Investments,HVPE Director
Richard HickmanDirector, Investment & Operations
William MacaulayDirector of Finance
Charlotte EdgarHead of Investor Relations
2 years with HarbourVest10 years in the industryFocuses on marketing and communications
5 years with HarbourVest13 years in the industryFocuses on investor relations and operational project management
10 years with HarbourVest10 years in the industryFocuses on financial management and portfolio reporting
1 year with HarbourVest1 year in the industrySupports financial reporting, investor relations and marketing activity
Hakki MustafaPortfolio Associate
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Board overview
45
The Board’s focus is on delivering value to shareholders
Comprised of highly-experienced finance and investment professionals
Sir MichaelBunburyChairman,Independent Director
D. Brooks ZugDirector
Peter WilsonDirector
KeithCorbinSenior Independent Director
Alan HodsonIndependent Director
Andrew MooreIndependent Director
Francesca BarnesIndependent Director
StevenWilderspinIndependent Director and Chairman of the Audit Committee
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Top 10 Largest Managers
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Access to leading private equity managers
No single manager represents more than 2.8% of the underlying portfolio
The 10 largest managers represent 15.6% of the underlying portfolio
These managers have the expertise to capture trends and unlock value
As at 31 January 2019. Past performance does not indicate future results.
MANAGER REGION STAGE AMOUNT OF INVESTMENT VALUE
IDG Capital Partners Asia Venture $48.6m
Index Ventures Europe Venture $31.9m
Thoma Bravo US Buyout $29.6m
Insight Venture Management US Venture $26.8m
The Jordan Company US Buyout $26.0m
Compass Partners Europe Buyout $24.9m
DCM Asia Venture $22.3m
Hellman & Friedman US Buyout $21.8m
Battery Ventures US Venture $21.6m
Lightspeed Venture Partners US Venture $20.3m
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Top 10 Largest Companies
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Exposure to current and future leading brands
No single manager represents more than 1.5% of the underlying portfolio
The 10 largest companies represent 10.3% of the underlying portfolio
These companies are diversified across geography, investment stage, and industry
As at 31 January 2019. Past performance does not indicate future results.
COMPANY LOCATION STRATEGY AMOUNT OF INVESTMENT VALUE
Press Ganey Associates US Buyout $25.8m
Preston Hollow Capital US Buyout $22.0m
Undisclosed Netherlands Buyout $21.3m
Rodenstock Germany Buyout $20.4m
Appriss US Venture $18.4m
Device Technologies Australia Buyout $17.3m
Valeo Foods Ireland Buyout $14.4m
Five Star Food Service US Other $14.2m
SolarWinds US Buyout $13.7m
Staples US Buyout $13.5m
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Wide-ranging sources of distributions
48
Realisations can be timed to optimise returns
Total of 413 liquidity events in the period (84% trade sales and 16% IPOs)
Acrisure ($20.0m) and Mater Private Healthcare ($15.3m) were the largest distributions
Top 10 largest exits distributed $93.5m to HVPE
Past performance does not indicate future results.
Buyo
ut
COMPANY DESCRIPTION HVPE DISTRIBUTED VALUE
Acrisure Insurance and Consulting services $20.0m
Mater Private Healthcare Private healthcare services $15.3m
CentralSquare Public sector technology platform $10.3m
Envirotainer Air cargo container manufacturer $9.8m
Multiasistencia Business process outsourcing services $7.1m
Adaptive Insights Business intelligence software $7.0m
TMF Group Outsourced business services $6.5m
NEW Asurion Corporation Provider of consumer product protection $6.3m
Finanzcheck Online consumer loan marketplace $6.1m
Wayfair Online home goods retailer $5.2m
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Disclaimer
49
STRICTLY CONFIDENTIAL
This document and this presentation have been prepared and issued by HarbourVest Global Private Equity Limited (the “Company”) for information purposes only and may not beused in making any investment decision.
None of the Company, its investment manager, HarbourVest Advisers, L.P. (the “Investment Manager”) or HarbourVest Partners, LLC (“HarbourVest”) has independently verified theinformation contained in this document and this presentation. This document and this presentation contain only summary information and no representation or warranty, express orimplied, is or will be made in relation to the accuracy or completeness of the information contained herein and no responsibility, obligation or liability (whether direct or indirect, incontract, tort or otherwise) is or will be accepted by the Company, HarbourVest, the Investment Manager or any of their respective affiliates or by any of their respective officers,employees or agents in relation to it. Each of the Company, HarbourVest, the Investment Manager and their respective affiliates and officers, employees or agents expresslydisclaims any and all liability which may be based on the document and any errors therein or omissions therefrom. In particular, no representation or warranty is given as to theachievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. Any views contained herein are based on financial, economic,market and other conditions prevailing as of the date of this document and this presentation. The information contained in this document and this presentation will not be updated.Further information on the Company, its Investment Manager and HarbourVest can be found on the Company’s website at www.hvpe.com and HarbourVest’s website atwww.harbourvest.com, including in announcements available on those sites.
This document and this presentation do not constitute any form of financial opinion or recommendation on the part of the Company, HarbourVest or the Investment Manager or anyof their respective affiliates and are not intended to be an offer, or the solicitation of any offer, to buy or sell any securities in any jurisdiction.
This document and this presentation contain track record data in relation to the performance of funds of funds managed by HarbourVest and its affiliates. When considering suchtrack record data, investors should bear in mind that past performance is not necessarily indicative of future results and, as a result, the Company’s actual returns may be greater orless than the amounts shown herein. Investment returns will depend on the increase or decrease in the trading price of the Company’s shares. In addition the Company is a closed-end investment company and the performance data presented herein for HarbourVest, as well as the private equity index performance data, relates principally to funds structured asself-liquidating partnerships and in which investor contributions were made only when the underlying fund made an actual investment.
Neither this document, nor this presentation, nor any copy of either may be taken or transmitted into the United States of America, its territories or possessions or distributed, directlyor indirectly, in the United States of America, its territories or to any US person (as defined in Rule 902 of Regulation S under the US Securities Act of 1933 (the “Securities Act”)). Thedistribution of this document and this presentation in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselvesabout, and observe, any such restrictions.
This document and this presentation are being distributed in the United Kingdom only to (i) persons who have professional experience in matters relating to investments who fallwithin Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”), or (ii) persons who are high net worth entities fallingwithin Article 49(2) (a) to (d) of the Order, and/or (iii) persons to whom it may otherwise be lawfully communicated, and (iv) "qualified investors" as defined in section 86 of theFinancial Services and Markets Act 2000, as amended (all such persons together being referred to as “relevant persons”). Any person who is not a relevant person should not act orrely on this presentation or any of its contents. Any investment or investment activity to which the presentation and these slides relate is available only to relevant persons and will beengaged in only with relevant persons.
By participating in this presentation or by accepting any copy of this document, you agree to be bound by the foregoing limitations.
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Forward-looking statements
50
This document contains certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, forward-looking statements can be indentified by terms such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘should,’’ ‘‘will,’’ and ‘‘would,’’ or the negative of those terms or other comparable terminology. The forward-looking statements are based on the Investment Manager’s beliefs, assumptions, and expectations of future performance and market developments, taking into account all information currently available. These beliefs, assumptions, and expectations can change as a result of many possible events or factors, not all of which are known or are within the Investment Manager’s control. If a change occurs, the Company’s business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Some of the factors that could cause actual results to vary from those expressed in forward-looking statements, include, but are not limited to: the factors described in this report; the rate at which HVPE deploys its capital in investments and achieves expected rates of return; HarbourVest’s ability to execute its investment strategy, including through the identification of a sufficient number of appropriate investments; the ability of third-party managers of funds in which the HarbourVest funds are invested and of funds in which the Company may invest through parallel investments to execute their own strategies and achieve intended returns; the continuation of the Investment Manager as manager of the Company’s investments, the continued affiliation with HarbourVest of its key investment professionals and the continued willingness of HarbourVest to sponsor the formation of and capital raising by, and to manage, new private equity funds; HVPE’s financial condition and liquidity, including its ability to access or obtain new sources of financing at attractive rates in order to fund short term liquidity needs in accordance with the investment strategy and commitment policy; changes in the values of or returns on investments that the Company makes; changes in financial markets, interest rates or industry, general economic or political conditions; and the general volatility of the capital markets and the market price of HVPE’s shares. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events, and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Any forward-looking statements are only made as at the date of this document, and the Investment Manager neither intends nor assumes any obligation to update forward-looking statements set forth in this document whether as a result of new information, future events, or otherwise, except as required by law or other applicable regulation. In light of these risks, uncertainties, and assumptions, the events described by any such forward-looking statements might not occur. HarbourVest qualifies any and all of its forward-looking statements by these cautionary factors. Please keep this cautionary note in mind while reading this report.
REGISTERED OFFICEHarbourVest Global Private Equity LimitedCompany Registration Number: 47907BNP Paribas HouseSt. Julian’s AvenueSt Peter PortGuernsey GY1 W1ATel +44 (0)1481 750800Fax +44 (0)1534 731795
INVESTMENT MANAGERHarbourVest Advisers L.P.c/o HarbourVest Partners, LLCOne Financial Center44th FloorBoston MA 02111U.S.A.Tel +1 617 348 3707Fax +1 617 350 0305
Richard HickmanDirector, Investment and [email protected]+44 (0)20 7399 9847
