HarbourVest Global Private Equity Ltd Capital Markets Presentation - - PowerPoint PPT Presentation

Capital Markets Presentation Financial Year in Review

HarbourVest Global Private Equity Ltd

13 June 2018

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Contents

HVPE Overview Annual Results – Year to 31 January 2018 Longer-Term Performance Key Takeaways

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HVPE Overview

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HVPE at a glance

London listed and a member of the FTSE 250 $1.7bn net asset value (NAV) £1.0bn market capitalisation Proven track record

4 Note: Holdings in publicly-traded companies, often resulting from IPOs in the private equity portfolio, represent 10% of HVPE’s investment portfolio value. *Share price as quoted in US$ to September 2015; converted from GBP thereafter. Past performance is not necessarily indicative of future results.

Building long-term wealth by investing in private companies

$12.46 $14.38 $15.86 $16.75 $18.47 $21.46 $21.23 $8.66 $10.75 $12.73 $12.41 $15.03 $17.77 $17.31 Jan 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2017 Jan 2018 Apr 2018 (est) NAV Per Share Share Price*

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HVPE’s structure

HVPE invests in and alongside HarbourVest funds Provides selective diversification through an actively managed portfolio Accesses a range of private market assets

5 Holdings in publicly-traded companies, often resulting from IPOs in the private equity portfolio, represent 10% of HVPE’s investment portfolio value. *As at 30 April 2018.

How does it work?

HVPE

Primary 46% Secondary 31% Direct 23%

7,756 Companies*

GP 1 GP 2 GP 3 GP 4 GP 5

42 HarbourVest Funds and 2 Co-Investments

The Investment Manager

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HarbourVest has a global private markets platform

One of the longest established firms in the industry

As of March 31, 2018. Based on primary, secondary, and direct commitments made by HarbourVest. Indicates HarbourVest team location.

Expertise across capital structure (equity and debt) and investment types PRIMARY SECONDARY DIRECT CO-INVEST $34.1 billion committed $19.8 billion committed $8.4 billion committed

London Beijing

North America

First investment 1982 $34.5 billion committed

Latin America

First investment 1994 $0.7 billion committed

EMEA

First investment 1984 $21.0 billion committed

Asia Pacific

First investment 1984 $6.0 billion committed

Toronto Boston Bogotá Tel Aviv Hong Kong Seoul Tokyo

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HarbourVest’s scale

Comprehensive coverage and disciplined selection

Represents all investment opportunities reviewed and approved for all HarbourVest funds / accounts from January 1, 2017 through December 31, 2017. Number of committed and closed deals in 2017, independent of when they were sourced. Direct deals do not include follow-on investments. 8

683

Funds Sourced

217

Funds Reviewed in Depth

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Managers Selected

450+

Deals Logged

100+

Offers and Indications

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Deals Closed

605

Deals Sourced

131

Deals Reviewed in Depth

36

Deals Closed

Primary Secondary & Real Assets Direct – Equity & Credit

HarbourVest has spent 35 years developing and refining a highly selective process for completing investments globally

$2.8B Committed $2.2B Committed $1.8B Committed

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HarbourVest’s performance

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Consistent outperformance over both short and longer-term time frames

As of September 30, 2017. Public Market Equivalent (PME+) based on MSCI ACWI Index. HarbourVest returns reflect the combined return (pooled IRR) of all primary, secondary, and direct investments in the HVPE po rtfolio in that vintage year. Private equity returns reflect the combined return (pooled IRR) of all private equity investments included in the Burgiss Man ager Universe for that vintage year. Past performance is not necessarily indicative of future results.

20.1% 14.7% 16.6% 14.5% 15.3% 11.8% 14.1% 10.4% 16.6% 6.1% 8.4% 6.4% 1 YR 3 YR 5 YR 10 YR HarbourVest Private Equity Pooled Public Market Equivalent HarbourVest returns have outperformed the private equity index and the public market over both short and longer-term time frames

Annual Results – Year to 31 January 2018

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Financial performance

Highlights Investment Portfolio Growth Buyout Portfolio Metrics Profile of Realisations Uplift on Carrying Values Credit Facility Expenses

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Activity during the year to 31 January 2018

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Annual results – highlights

NAV growth in year of 16.2% in USD (3.0% in GBP) Share price increase of 18.2% in USD (4.8% in GBP) Commitments to HarbourVest funds of $340m Realised uplifts continued above 30% Positive net cash flow trend; distributions of $405m exceeded new investments of $313m Net cash on balance sheet of $257m at year-end ($208m at 30 April) Share trading turnover and daily liquidity remained consistent

12 See www.HVPE.com for the full report.

Year to 31 January 2018

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Investment portfolio growth

Secondaries and Direct Co-investments outperformed Primary investments Buyout performance led all other stages European and Asia Pacific were the strongest performing regions

13 Past performance is not necessarily indicative of future results.

$248.8m of investment portfolio value growth

Stage

17.0% 14.5% 16.3% 16.5%

Buyout Early Venture Other Growth Equity

Strategy Geography

13.8% 21.9% 21.6% 14.0%

US Europe Asia Pacific RoW

15.0% 18.7% 16.8%

Primary Secondary Direct Co- investment

Investment Portfolio Growth % gain over the year to 31 January 2018, at the partnership level

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Buyout portfolio metrics

Weighted average EBITDA increase over previous year is 11% 66% of the underlying companies increased EBITDA during the year Approximately 45% of these companies are growing earnings at >10% per annum Overall valuation multiple is 11.8x EBITDA (compared to 11.1x at prior year end) Overall debt multiple is 5.2x EBITDA (compared to 4.6x at prior year end)

14 Past performance is not necessarily indicative of future results.

Figures from a sample of 694 buyout companies representing 28% of total NAV

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Profile of realisations

Cash from distributions increased in the year to 31 January 2018 Largest exits included; Lightower ($33.0m), Capsugel ($15.4m), and Wayfair ($11.0m) The 2007 vintage was the most significant contributor to realisations in 2018 at 17% 2013-2015 vintages generated strong realisation flows

15 Past performance is not necessarily indicative of future results.

$405.1m of cash distributions

Investment Portfolio Realisations By Vintage Year % Realised during year ended 31 January 2018 vs. 31 January 2017

9% 1% 4% 13% 12% 19% 17% 3% 3% 9% 4% 1% 2% 3% 0% 0% 3% 1% 2% 4% 8% 17% 8% 2% 4% 8% 6% 10% 10% 10% 6% 1%

< 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

31-Jan-17 31-Jan-18 Mature phase Growth phase Investment phase

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Uplift on carrying value at realisation

31% weighted average uplift achieved at realisation (average multiple of 3.8x cost) Realisations from the Venture portfolio (6.8x) and IPOs (7.0x) were particularly strong

16 Uplift represents weighted average return for the 100 largest M&A and IPO transactions which represent approximately 84% of the value of the known transactions during the financial year. This analysis represents a subset of the transactions during the financial year. This analysis represents a subset of the transactions and does not represent the portfolio as a whole. Additionally, this analysis 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 results.

Six consecutive years of uplifts of at least 30% over carrying value on realisations

3.8x 2.9x 6.8x 3.4x 7.0x

Total Buyout Venture M&A IPO

Weighted A verage Multiple on the Cost of Investment Weighted A verage Uplift % on the Carrying Value*

31% 32% 19% 31% 34%

Total Buyout Venture M&A IPO

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Credit facility

$500m revolving credit facility provided jointly by Lloyds and Credit Suisse Facility was successfully renewed in December 2017 Runs to December 2022 Commitment fee is 115 bps per annum on the undrawn amount Margin over Libor on the total amount of any drawn amount scales as follows

• 275 bps up to $250m
• 305 bps up to $500m

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Access to funding, should it be required

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TER has trended downwards over time

TER, net of interest income, is 2.90% at 31 January 2018 Management fee component has declined steadily since inception to 1.01% Carried interest varies with USD NAV growth performance

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Reflects the cost of providing a fully comprehensive private equity programme

HVPE Total Expense Ratio

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

% of NAV HVPE Operating Expenses HVP Funds Management Fees HVP Funds Carried Interest HVPE Total Expense Ratio (TER)

HVPE’s Total Expense Ratio of 2.90% at 31 January 2018 is comprised of a Net Operating Expense Ratio, 1.76%, plus Carried Interest, 1.14%.

Longer-Term Performance

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NA V total return (USD)

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Steady NAV and share price growth since 2009

*Compound annual of future returns growth rate calculated through 30 April 2018. The underlying data used for April calculati ons 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 Jan 2016 Jan 2017 Jan 2018 Apr 2018

HVPE NAV

$10.39 $7.61 $8.65 $10.24 $11.42 $12.46 $14.38 $15.86 $16.75 $18.47 $21.46 $21.23 3.9% (26.8%) 13.7% 18.4% 11.5% 9.1% 15.4% 10.3% 5.6% 10.3% 16.2% (1.1%)

FTSE AW TR

242.2 140.3 200.3 240.7 233.1 269.5 305.0 327.9 307.7 365.4 468.4 444.5 (8.1%) (42.1%) 42.8% 20.1% (3.2%) 15.6% 13.2% 7.5% (6.2%) 18.8% 28.2% (5.1%) $10.39 $7.61 $8.65 $10.24 $11.42 $12.46 $14.38 $15.86 $16.75 $18.47 $21.23

$2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 HVPE NAV ($) FTSE AWI TR HVPE Share Price ($)

$17.31

Euronext SFM** Main Market

Cumulative Return (6 Dec 07 – 30 April 2018) HVPE NAV ($) 112.3% HVPE Share Price TR ($) 72.0% FTSEAW TR 64.7%

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NA V performance compared to peers

Ranked among the top performing listed private equity funds over five years Very strong performance since inception

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HVPE’s long-term outperformance

3% 41% 86% 200% 5% 52% 81% 116% 3% 36% 73% 135%

NAV TR 1 Year NAV TR 3 Years NAV TR 5 Years NAV TR Since Inception

HVPE NAV growth Peer Median NAV Growth FTSE AW TR*

Source: Edison Research / MorningStar / Datastream data. As at 31 March, 2018. All figures GBP. Past performance is not necessarily indicative of future results. ‘Peers’ refers to the entities in the listed Private Equity sector considered to be comparable to HVPE by Edison Research.

+84%

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Share price discount to NA V

Narrowing discount over the year to 31 January 2018 HVPE’s discount is significantly outside the listed fund-of-funds average Current discount at 21.6% compared to the UK FOFs weighted average of 14.5%

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Discounts are significant in the listed private equity sector

Current share price discount/ premium to NA V in listed private equity

• 21.6%
• 20.5%
• 19.1%
• 14.6%
• 14.5%
• 13.4%
• 13.0%
• 13.0%
• 4.9%

0.7%

As at 08 June, 2018. Source: J.P. Morgan Cazenove Investment Companies Daily Interactive Stats.

HVPE NB Private Equity Altamir JPEL UK FOFs Average Standard Life ICG Pantheon Hg Capital F&C

Post Year-End Activity

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Portfolio construction at 30 April 2018

New commitments are made with reference to HVPE’s Strategic Asset Allocation targets The Board reviewed and revised these targets in February 2018

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Ready-made private markets portfolio diversified by stage, geography and strategy

Geography Stage Strategy

60% 30% 10% 60% 32% 8% Buyout Venture and Growth Equity Mezzanine and Real Assets Target Actual 60% 60% 30% 32% 10% 8% 65% 18% 12% 5% 55% 22% 16% 7% US Europe Asia Pacific Rest of World Target Actual 65% 55% 18% 22% 12% 16% 5% 7% 55% 25% 20% 46% 31% 23% Primary Secondary Direct Target Actual 55% 46% 25% 31% 20% 23%

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Commitments since 31 January 2018

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Total of $305m committed to three newly-formed HarbourVest funds

Month Fund Description Commitment Size

March HarbourVest Fund XI US focused multi-strategy fund-of-funds $65.0m 2018 Global Fund Global multi-strategy fund-of-funds $20.0m April HarbourVest Fund XI US focused multi-strategy fund-of-funds $70.0m June HarbourVest Adelaide Real assets vehicle $150.0 TOTAL $305.0m

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Real assets income strategy

HVPE has committed $150m to a new HarbourVest vehicle HVP Adelaide is a real assets vehicle intended to deliver a long-term cash yield combined with capital growth As a seed investor, HVPE benefits from preferred economics, thereby enhancing prospective returns HVPE also stands to share in the potential upside as the platform grows over time

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A complementary addition to HVPE’s private markets programme

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Real assets platform growth

Since 2014 HarbourVest has deployed $1.9B in real assets investments*

• $1.2B has been into dedicated real assets funds

The real assets team has grown to over 10 investment professionals Investments made across the secondary, direct co-investment and primary strategies

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An expanding line of business

289 240 245 247 210 86 59 161 320 100 200 300 400 500 600 2014 2015 2016 2017 Jan-Apr 2018

Dedicated real assets funds Other HarbourVest funds

# of Investments

3 6 9 12 15 # of Investments $ Millions

Real Assets Transactions

* Includes all real asset investments made by a HarbourVest fund or account between 2014

• April 30, 2018. Past performance is not necessarily indicative of future results.

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Private markets investment frontier

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Real assets offer a mix of risk / return exposures

Energy Infrastructure & Power Natural Resources

Timberland Farmland Contracted Power Transport (shadow tolls) Utilities Midstream Infrastructure Upstream O&G Production

Communications

Transport (traffic risk) Merchant Power Upstream O&G (E&P) Upstream Mining Midstream O&G

Based on HarbourVest internal analysis. This chart is meant to provide a general illustrative representation of the private markets real assets risk / return profile.

Risk Return

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Real assets market opportunity

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Market growth providing a range of high quality opportunities

Real Assets Private Equity Funds Raised – 2006 - 2017*

Over $700 billion raised since 2006

20 40 60 80 100 120 140 160 $0 $20 $40 $60 $80 $100 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 # of Funds

$ Billions

Real Assets Fundraising Number of Funds

Real Assets Secondary Market Opportunity**

100 200 300 400 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17

$ Billions

NAV Outstanding NAV > 5 years

Mature capital growth: <$100b in 2011 to >$170b today

Secondary Investments

Traditional – maturity of earlier vintage funds driving NAV turnover and active sellers; competition remains limited Complex – consistent opportunities on GP-led deals, solutions within non- traditional or complex fund structures

Direct Investments

Less developed “co-investment syndication” market compared to private equity, driving unique deal access for market specialists

* Source: Preqin, as of December 31, 2017 ** Cambridge Associates, Preqin As of September 30, 2017

Key Takeaways

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Key takeaways

Focused, consistent strategy: investing in PE fund of funds A carefully selected, diversified portfolio providing access to private companies Managed by HarbourVest Partners, a leading private markets investor Outperformance of other listed private equity firms and public markets over the long-term Currently trading at a discount while realising assets at a premium “Building long-term wealth by investing in private companies”

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HVPE has the scale and liquidity to meet the needs of all investors

Visit us at www.hvpe.com

Past performance is not necessarily indicative of future results.

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Disclaimer

32 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 be used 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 the information contained in this document and this presentation. This document and this presentation contain only summary information and no representation or warranty, express or implied, 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, in contract, 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 expressly disclaims 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 the achievement 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 at www.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 any

• f 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 such track 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 or less 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 as self-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, directly

• r 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”)). The

distribution of this document and this presentation in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, 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 fall within 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 falling within 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 the Financial 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 or rely 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 be engaged in only with relevant persons. By participating in this presentation or by accepting any copy of this document, youagree to be bound by the foregoing limitations.

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Forward-looking statements

33 This document contains certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events

• r 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 performanc e 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 achiev e 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 OFFICE HarbourVest Global Private Equity Limited Company Registration Number: 47907 BNP Paribas House

• St. Julian’s Avenue

St Peter Port Guernsey GY1 W1A Tel +44 (0)1481 750800 Fax +44 (0)1534 731795 INVESTMENT MANAGER HarbourVest Advisers L.P. c/o HarbourVest Partners, LLC One Financial Center 44th Floor Boston MA 02111 U.S.A. Tel +1 617 348 3707 Fax +1 617 350 0305 Richard Hickman Director, Investment and Operations rhickman@harbourvest.com +44 (0)20 7399 9847