HarbourVest Global Private Equity Ltd Annual Results Presentation - - PowerPoint PPT Presentation
HarbourVest Global Private Equity Ltd Annual Results Presentation 12 Months to 31 January 2019 30 May 2019 Outline Tenth consecutive year of net asset value (NAV) growth Chairmans Introduction The Case for HVPE Annual Results
Annual Results Presentation 12 Months to 31 January 2019
30 May 2019
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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
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Sir Michael Bunbury
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Richard Hickman Director, Investment and Operations
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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
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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 2019 2010
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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-Investments
Primary 45% Secondary 31% Direct 24% GP 1 GP 2 GP 3 GP 4
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.
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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 16,117 34,492 30,109 44,935 5,000 27,706 73,079
2016 2017 2018 2019 Mean Median Modal
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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%
8.5% 13.2% +4.7% UK US Other UK US Other UK US Other
SEPTEMBER 2015 MAY 2019 MOVEMENT
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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% Technology Consumer Medical Business Ser. Industrial Financial Energy Media
Diversification as at 31 January 2019.
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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 America
First investment 1982 $38.1 billion committed
Latin America
First investment 1994 $0.7 billion committed
EMEA
First investment 1984 $21.5 billion committed
Asia Pacific
First investment 1984 $6.5 billion committed
Toronto Boston Bogotá Tel Aviv Hong Kong Seoul Tokyo Dublin
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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 HarbourVest Private 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
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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
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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
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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
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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%
Primary Secondary Direct co-investment Buyout Venture/Growth Equity Real Assets Other US Europe Asia Pacific ROW
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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.
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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.
Primary Secondary Direct co-investment Buyout Venture/Growth Equity Real Assets Other US Europe Asia Pacific ROW 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
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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 Buyout Venture M&A IPO Buyout Venture M&A IPO TOTAL
2019
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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
$0 $100 $200 $300 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Absolute
Conversus
31 January 2019 $156.6m
$48 $83 $52 $137 $181 $204 $257 $356 $363 $251 $405 $307
$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
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$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
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Past performance does not indicate future results.
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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 range 157% 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
(Jan 2018: 157%)
(Jan 2018: 85%)
(Jan 2018: 61%)
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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.
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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 2018
Recurring 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%
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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
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%
HVPE Pantheon NB Private Equity Standard Life Hg Capital LPE Avg. Return ICG Enterprise MSCI ACWI BMO FTSE Inv. Cos FTSE All S. MSCI Eur. JPEL
Based on returns for the 9 years to 31 December 2018 HVPE FOF Avg. JPEL ICG Pantheon NB PE
BMO Hg Capital
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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
ICG BMO
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The Times, 20th February 2019 The FT, 2nd April 2019 Daily Telegraph, 11th May 2019 Daily Mail, 20th October 2018 MoneyWeek, 4th April 2019
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*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 Jan 2016 Jan 2017 Jan 2018 Jan 2019 HVPE NAV $10.39 $7.61 $8.65 $10.24 $11.42 $12.46 $14.38 $15.86 $16.75 $18.47 $21.46 $24.09 3.9% (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%
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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 '18 Q1 '19 Q1
Buyout VC By Strategy
'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '18 Q1 '19 Q1 100 200 300 400 500 600
Capital Raised, USD Billions US Europe Asia Total ’09-’13: $1.0 trillion Total ’14-’18: $1.8 trillion
size up 70% ’13- ’18 By Region
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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 '18 200 400 600 800 1,000 1,200
Deal Value, USD Billions US Europe Asia Total: $1.1tn Total: $3.8tn ’14-’18 CAGR 38% 14% 18% Asia Europe US 6.1x 6.3x 5.1x 4.3x 5.8x 5.5x 3.6x 3.4x 3.6x 5.1x 4.8x 5.4x 9.7x 9.7x 8.7x 9.3x 10.6x 10.9x
0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x
Debt/EBITDA Equity/EBITDA ‘07 ‘12 ‘18 US EU US EU US EU By Region US/Europe Buyout Multiples
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Source data: Pitchbook. As at April 2019.
'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 100 200 300 400 500 600 700 800 900 1,000
Exit Value, USD Billions US Europe Asia Total: $1.9 trillion Total: $4.4 trillion By Region
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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 Trailing Period Return (IRR %) 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
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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
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
> $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
> 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.
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’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19E ’20E ’21E ’22E 20 40 60 80 100 120 140 $ Billions Incremental Growth Drivers Increasing number and volume of GP-Led transactions Investors embracing proactive portfolio management $2.3 trillion raised in primary capital
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
Percentage of Funds Returning < 1.0x
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> 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 Dispersion 2002-2013 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
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
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COMPLEX
Structured Liquidity Solution Team Spin-Out / Buy-In
TRADITIONAL
Public Market
HIGH COMPLEXITY LOW COMPETITION LOW COMPLEXITY HIGH COMPETITION
LP Tender Asset Sale
LP Interests GP-Led
Recap
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HVPE’s team has the complementary skills needed to run a high-quality fund
41 years with HarbourVest 49 years in the industry Responsible for overseeing primary, secondary, and direct co-investments 23 years with HarbourVest 28 years in the industry Leads secondary investment in Europe A member of the EMC
Senior Managing Director and Founder, HVPE Director Peter Wilson Managing Director Secondary Investments, HVPE Director Richard Hickman Director, Investment & Operations William Macaulay Director of Finance Charlotte Edgar Head of Investor Relations
2 years with HarbourVest 10 years in the industry Focuses on marketing and communications 5 years with HarbourVest 13 years in the industry Focuses on investor relations and
10 years with HarbourVest 10 years in the industry Focuses on financial management and portfolio reporting 1 year with HarbourVest 1 year in the industry Supports financial reporting, investor relations and marketing activity
Hakki Mustafa Portfolio Associate
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Comprised of highly-experienced finance and investment professionals
Sir Michael Bunbury Chairman, Independent Director
Zug Director Peter Wilson Director Keith Corbin Senior Independent Director Alan Hodson Independent Director Andrew Moore Independent Director Francesca Barnes Independent Director Steven Wilderspin Independent Director and Chairman of the Audit Committee
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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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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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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.
Buyout
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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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 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
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
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, you agree to be bound by the foregoing limitations.
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50 This document contains certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events
‘‘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
REGISTERED OFFICE HarbourVest Global Private Equity Limited Company Registration Number: 47907 BNP Paribas House
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