HarbourVest Global Private Equity Ltd Capital Markets Presentation - - PowerPoint PPT Presentation
HarbourVest Global Private Equity Ltd Capital Markets Presentation 8 JUNE 2017 CONFIDENTIAL Contents > Chairmans Introduction > Global Markets Review 2017 > Portfolio Construction > Long Term Performance > Financial Performance
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8 JUNE 2017
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200 400 600 800 1,000 1,200 1,400 1,600
Reflects data as of 31 January of each year. Past performance is no guarantee of future returns
2013 2014 2015 2016 $12.46
NAV per Share
$14.38
NAV per Share
$15.86
NAV per Share
(▲9%) (▲15%) (▲10%) (▲6%) HVPE Net Asset Value Growth ($ millions except per share data) $16.75
NAV per Share
(▲10%) 2017 $18.47
NAV per Share
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JUNE | 2017
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44 46 48 50 52 54 56 58
Eurozone UK US Emerging Markets Global
Mar 2015 Mar 2016 Mar 2017
Source: Real GDP Growth Forecasts: IMF, as of April 2017; Composite PMI: Bloomberg, as of March 31, 2017
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
US Eurozone UK Emerging Markets Global
2016 2017F 2018F Real GDP Growth Forecasts Composite PMI, Year-on-Year Change
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PMI score >50 indicates positive output and employment intentions
CONFIDENTIAL Citigroup Economic Surprise Index tracks how economic data are faring relative to expectations: the index rises when economic data exceed economists’ consensus estimates and falls when data come in below estimates Source: Bloomberg, as of April 25, 2017
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10 20 30 40 50 60 2014 2015 2016 2017 Data ahead of expectations Data below expectations
CONFIDENTIAL Source: Bloomberg, as of March 31, 2017
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’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 S&P 500 10-Year Avg SPX 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 11.0x 12.0x 13.0x 14.0x ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 MSCI World 10-Year Avg MXWO ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 MSCI Europe 10-Year Avg MXEU +21% +30% +17%
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MSCI World Index $290 $345 $67 $82 $0 $150 $300 $450 $600 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 Q1 ’16 Q1 ’17 US Europe Asia EM
Source: Bloomberg, Thomson Reuters, AVCJ, APER, EMPEA, supplemented by HarbourVest market insights
EV / FWD EBITDA of MSCI World Index
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14x 12x 10x 8x 6x
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’05 - ’08 cycle $6.1 billion in distributions (0.7x capital called) ’09 - ’12 cycle $6.7 billion in distributions (1.1x capital called) ’13 - ’16 cycle $12.6 billion in distributions (2.5x capital called)
Reflects cash flows from primary investments made by HarbourVest-managed funds and accounts; see notes 2 and 3 Past performance is no guarantee of future returns
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0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x
400 800 1,200 Q1 ’05 Q1 ’06 Q1 ’07 Q1 ’08 Q1 ’09 Q1 ’10 Q1 ’11 Q1 ’12 Q1 ’13 Q1 ’14 Q1 ’15 Q1 ’16 Q1 ’17 Distributions Capital Calls Distributions / Capital Calls $ Millions
CONFIDENTIAL Source: Thomson Reuters, Incisive Media, and HarbourVest analysis of Asia from AVCJ, APER, EMPEA, and GP reporting
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CONFIDENTIAL Reflects gross performance of the primary and secondary investments made by HarbourVest-managed funds and accounts in each cycle (Vintages 2005-2008, 2009-2012, and 2013-2016), measured as of the end date of the cycle (December 21, 2008, 2012, or 2016), see note 2 Past performance is no guarantee of future returns
Portfolio IRR at Cycle End DPI at Cycle End
28% 22%
11% 25%
0% 5% 10% 15% 20% 25% 30% 35% ’05 - ’08 ’09 - ’12 ’13 - ’16 US Buyout Europe Buyout 0.12x 0.11x 0.22x 0.15x 0.07x 0.33x 0% 5% 10% 15% 20% 25% 30% 35% ’05 - ’08 ’09 - ’12 ’13 - ’16 US Buyout Europe Buyout
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$87 $78 200 400 600 800 1,000 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 Q1 ’16 Q1 ’17
US Buyout Europe Buyout US Venture Asia EM
$ Billions ’13 - ’16 cycle $1.7 trillion invested ’09 - ’12 cycle $1.1 trillion invested ’05 - ’08 cycle $2.2 trillion invested
Source: Thomson Reuters, MergerMarket, S&P LCD and HarbourVest analysis of Asia from AVCJ, APER, EMPEA, and GP reporting
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74% 57% 28% 13% 64% 49% 35% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% ’05 ’06 ’07 ’08 ’13 ’14 ’15 ’16
Reflects primary investments made by HarbourVest-managed funds and accounts in each vintage year of the cycle (2005-2008 and 2013-2016), measured as of the end date of the respective cycle (December 31, 2008 and December 31, 2016) Past performance is no guarantee of future returns
76% 66% 45% 18% 62% 49% 33% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% ’05 ’06 ’07 ’08 ’13 ’14 ’15 ’16 US Buyout Funded Level at Cycle End Europe Buyout Funded Level at Cycle End % Funded
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CONFIDENTIAL Source: S&P LCD Leveraged Buyout Report Q4 2016 and HarbourVest internal data (median EV / EBITDA by year) As of December 31, 2016
5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 11.0x ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 US US (HV Portfolio) US Buyout Entry EV / EBITDA 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 11.0x ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 Europe Europe (HV Portfolio) International Buyout Entry EV / EBITDA
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Private equity Other alternatives Public markets
6.3% 6.0% 6.0% 12.3% MSCI World Hedge Funds Infrastructure Real Estate Private Equity 10-year Returns
Source: Burgiss Q4 2016 benchmarks (global private equity, global real estate, global infrastructure), Hedge Fund Research (HFRI Fund Weighted Global Composite Index), Bloomberg (MSCI World, dividends reinvested in the index) as of December 31, 2016. Past performance is no guarantee of future returns
20-year Returns 4.5% 3.2% 2.7% 6.0% 9.2% MSCI World Hedge Funds Real Estate Infrastructure Private Equity 11.1% 4.3% 7.4% 10.2% 12.7% MSCI World Hedge Funds Infrastructure Real Estate Private Equity 3-year Returns 5-year Returns 4.4% 3.1% 6.9% 9.5% 9.8% MSCI World Hedge Funds Infrastructure Real Estate Private Equity N/A – no data +6.0% +4.7% +1.6% +5.4%
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33% 25% 22% 2000 - ’04 2005 - ’09 2010 - ’13 Same-quartile persistency Past Performance - An Increasingly Unreliable Guide Structural Underpinning to Private Markets’ Expansion Growing Number of New Entrants 50 100 150 200 250 300 350 400 450 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 First-time funds Privat e Feder al State & Local Total Assets Liability Gap Total (Pension Funds) State & Local US Pensions US Federal Pensions US Private Pensions 8.2 3.8 1.5 2.9 4.3 1.9 1.9 0.59
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Conventional Wisdom Portfolio Construction # Funds 40 - 50 GP Churn Less is more Commitment Pacing Track the fundraising cycle J-Curve Goes with the territory Tail-End Management Patience is a virtue Sub-Asset Class Focus Stay narrow on private equity Investment Process Market Coverage Open door policy Manager Selection Best GPs in each geography Due Diligence Performance is all that matters Cutting Edge Data-driven analysis Depends on risk-return objectives Re-underwrite everything Churn is critical Consistent through the cycle Even ticket sizes Front-load secondaries Prudent use of credit lines Opportunistic asset sales Tail end divestitures Broader use of private markets Value/growth/yield mix Deep & embedded Integrated across platform Thematic focus Balance portfolio Investment due diligence +
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All performance figures are as of 31 January 2017 except where indicated. Past performance is no guarantee of future returns
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CONFIDENTIAL Image sources: Daily Mirror, CNN (Factset data), Getty Images
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Telegraph
Guardian
CNN
Daily Mirror
Aug 2015 Jan 2016 Jun 2016 Nov 2016
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£7.00 £8.00 £9.00 £10.00 £11.00 £12.00 £13.00 £14.00 £15.00 Jan-2015 Jul-2015 Jan-2016 Jul-2016 Jan-2017 HVPE NAV (£) HVPE Share Price (£) FTSE 250 (£) FTSE AW (£)
Apr-Sep 2016: $115m drawn down for new investment Apr-Sep 2015: $103m drawn down for new investment Sep 2015: HVPE Main Market Listing
CONFIDENTIAL * See www.hvpe.com for the full report Past performance is no guarantee of future returns.
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CONFIDENTIAL Data as of 31 January 2017
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CONFIDENTIAL * As at 30 April 2017
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2016 US Buyout Small Mid Manager Industry Strategy Large Venture Mezzanine Europe Asia RoW
Secondary Primary Direct 2015 2014
CONFIDENTIAL HarbourVest proprietary data set; Vintage years 1995 – 2012; Funds with residual value <20% *Global portfolio weights are as follows: 55% US/15% Europe/15% Asia/15% RoW; 15% Venture/85% Buyout **US portfolio weights are as follows: 15% Venture/85% Buyout. Past performance is no guarantee of future returns The graphic and data above are based on a Monte Carlo simulation. See Note 1 for more information on the construction of this simulation
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1.77x 1.97x
0% 10% 20% 30% 40% 50% 1.00x 1.50x 2.00x 2.50x 3.00x
Probability Density DPI Multiple
US Median Global Median US Diversified Porfolio Global Diversified Portfolio
US Portfolio Global Portfolio % < = 1.0x 6.3% 0.0% 1.0x < % <=1.5x 9.7% 11.6% 1.5x < % <= 2.0x 75.9% 40.7% 2.0x < % <= 2.5x 7.9% 27.5% 2.5x < % <= 3.0x 0.2% 19.4% % > 3.0x 0.0% 0.8%
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Some strategies prove to be more correlated and volatile relative to the economic cycle
It is hard to predict the top and the bottom
Performance can vary dramatically Takeaways:
Diversify across key markets
Commit continuously
Don’t time the market
Legend Rank 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3 Yr IRR 5 Yr IRR 10 Yr IRR Asia 1 104.3% 83.1% 33.4% 12.0% 33.1% 38.1% 37.5% 22.1% 26.1% 11.6% 15.5% 14.6% 16.4% 20.6% 25.0% 28.0% 21.8% 20.9% 16.8% 15.8% 12.2% Euro Buyout 2 28.1% 18.7% 20.4% 10.2% 32.5% 36.9% 37.5% 20.3% 24.2% 10.9% 10.7% 11.3% 14.8% 20.2% 18.2% 22.8% 16.9% 15.3% 16.7% 15.0% 12.0% Global Secondaries 3 19.1% 17.7% 20.3% 9.8% 17.3% 25.3% 29.8% 19.8% 20.3% 9.0% 9.2% 10.6% 14.5% 16.9% 17.5% 20.5% 16.3% 15.2% 15.7% 14.8% 11.2% US Buyout 4 13.3% 16.9% 14.7% 9.4% 16.6% 23.8% 22.1% 17.8% 15.4% 8.8% 9.1% 9.9% 14.1% 15.8% 15.9% 18.2% 14.7% 14.2% 13.9% 14.2% 10.8% US Growth 5 10.6% 14.5% 11.4% 8.9% 16.1% 20.2% 21.9% 17.2% 13.4% 8.6% 8.2% 9.4% 14.0% 15.2% 14.9% 16.5% 13.8% 11.3% 12.9% 13.4% 10.4% US Venture 6 10.6% 12.4% 10.7% 8.4% 15.9% 20.0% 20.1% 16.1% 12.6% 7.8% 8.0% 9.4% 13.5% 14.6% 13.9% 15.9% 13.7% 9.4% 12.2% 12.7% 10.3% Global Credit 7 5.9% 12.1% 9.3% 6.1% 15.3% 20.0% 18.6% 16.1% 11.5% 7.7% 7.9% 9.3% 13.4% 13.3% 12.4% 15.4% 12.7% 8.6% 10.1% 12.1% 9.9% US Credit 8 5.6% 10.4% 8.0% 2.6% 13.2% 18.8% 17.8% 12.2% 7.8% 7.2% 7.1% 8.9% 13.3% 11.2% 10.1% 8.9% 12.2% 6.8% 9.6% 11.7% 9.6% Global PE Energy 9 5.6% 10.1% 5.1% 0.4% 10.4% 13.4% 16.1% 11.9% 7.1% 7.1% 7.1% 8.7% 11.2% 10.5% 9.5% 8.4% 12.1% 6.4% 7.9% 10.0% 9.4% US PE Energy 10 5.0% 9.9% 2.3% 7.9% 10.1% 8.9% 8.3% 6.7% 6.9% 6.8% 8.5% 1.0% 10.4% 1.3% 7.1% 6.0% 6.3% 7.5% 8.9% 7.1% Global Infrastructure 11 4.8%
3.6% 8.3% 5.5% 7.6% 4.2% 6.5%
8.2% 0.3% 8.9% 1.0% 4.1% 5.1% 5.3%
2.1% 5.5% Global PE 12
0.0% 3.6% 1.6% 2.1% 6.1%
7.7%
1.3% 5.2% US Economy OECD Global Economy Source: Cambridge Associates net LP pooled returns as of 9/30/2016, RecessionAlert.com Euro Buyout returns represented in EUR
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By Stage By Geography By Strategy
INVESTMENT PORTFOLIO CONSTRUCTION TARGETS
CONFIDENTIAL Data as per 30 April 2017 Monthly Factsheet
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By Stage By Geography By Strategy
INVESTMENT PORTFOLIO DIVERSIFICATION
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CONFIDENTIAL * Compound annual growth rate calculated through 30 April 2017 Past performance is no guarantee of future returns
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$10.39 $7.61 $8.65 $10.24 $11.42 $12.46 $14.38 $15.86 $16.75 $18.47 $18.66
$2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00
HVPE NAV ($) FTSE AWI TR HVPE Share Price ($)
$16.12
Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2017 Apr 2017 HVPE NAV $10.39 $7.61 $8.65 $10.24 $11.42 $12.46 $14.38 $15.86 $16.75 $18.47 $18.66 3.9% (26.8%) 13.7% 18.4% 11.5% 9.1% 15.4% 10.3% 5.6% 10.3% 1.0% FTSE AW TR 242.2 140.3 200.3 240.7 233.1 269.5 305.0 327.9 307.7 365.4 387.0 (8.1%) (42.1%) 42.8% 20.1% (3.2%) 15.6% 13.2% 7.5% (6.2%) 18.8% 5.9%
Cumulative Return (6 Dec 07 – 30 Apr 17) HVPE NAV ($) 86.6% HVPE Share Price TR ($) 60.5% FTSE AW TR 46.8%
CONFIDENTIAL Source: Edison Research / MorningStar / Datastream data, 31 March 2017 * All figures GBP Past performance is no guarantee of future returns
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23% 68% 103% 195% 23% 58% 75% 93% 33% 57% 97% 133% 0% 50% 100% 150% 200% NAV TR 1 Year NAV TR 3 Years NAV TR 5 Years NAV TR Since Inception HVPE NAV growth Peer Median Average NAV Growth FTSE AW TR* HVPE NAV Performance vs. Peers*
CONFIDENTIAL Source: J.P. Morgan Cazenove Investment Companies Daily Interactive Stats sheet as of 10 May 2017
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Current Share Price Discount/Premium to NAV
3.7% 43.6%
0% 10% 20% 30% 40% 50% Altamir Aberdeen Private Equity Pantheon International JP Morgan Private Equity NB Private Equity Partners ICG Enterprise Trust UK FOFS Weighted Average HarbourVest Private Equity Standard Life Euro Private Eq Electra F&C Private Equity Trust 3i Group
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* % of Investment Pipeline at prior financial year-end, adjusted for commitments made during the year
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Unallocated $322 Allocated $879 Investment Pipeline At 31 January 2017 1-3 yrs 4-6 yrs 7-10 yrs >10 yrs $598 $152 $49 $79
Cash + Available Credit Facility $675m Current Year Projected Realisations $269m A: Total Liquid Resources $944m B: Next Three Years’ Estimated Investments $898m Rolling Coverage Ratio = A/B = 105%
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0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Pre-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
INVESTMENT PORTFOLIO REALISATIONS BY VINTAGE YEAR % Realised during 12 months ended 31 January 2017
CONFIDENTIAL * Uplift represents weighted average return for the 148 largest M&A and IPO transactions which represent approximately 85% of the value of the known 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 no guarantee of future returns
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0% 20% 40%
Total Venture Buyout M&A IPO Weighted Average Uplift % on the Carrying Value*
0x 2x 4x 6x
Total Venture Buyout M&A IPO Weighted Average Multiple on the Cost of Investment
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11% 12% 9% 15% 0% 5% 10% 15% 20% Europe Asia Pacific US RoW By Geography 13% 3% (3%) 12%
0% 5% 10% 15% 20% Buyout Growth Equity VC Other By Stage 8% 6% 20% 0% 5% 10% 15% 20% Primary Secondary Direct By Strategy
INVESTMENT PORTFOLIO GROWTH Gain over 31 January 2017 value, adjusted for new investments during the period
Early Venture
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0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017
% of Average NAV
HVPE Operating Expenses HVPE Management Fee HVPE Carried Interest HVPE Total Expense Ratio (TER)
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$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0
Carried Interest Management Fees (HarbourVest) Management Fees (Co- investments) Other Expenses Directors' Fees and Expenses Professional Fees Investment Services Credit facility
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Manager Region Stage % of Investment Value Thoma Bravo US Buyout and Venture 1.8% Welsh, Carson, Anderson & Stowe US Buyout and Mezzanine 1.5% Compass Partners International Europe Buyout 1.4% TPG Capital US Buyout 1.3% The Blackstone Group US Buyout 1.3% Index Ventures Europe Venture and Growth Equity 1.2% Health Evolution Investments US Growth Equity 1.2% Lightspeed Venture Partners US Venture and Growth Equity 1.2% Insight Venture US Venture 1.1% Hellman & Friedman US Buyout 1.1%
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Top 10 companies Region Description % of Investment Value Lightower Fiber Networks US Fibre optic telecommunications 2.14% Press Ganey US Healthcare data provider 1.34% Preston Hollow Capital US Speciality finance platform 1.33% Capsugel US Drug delivery systems 1.31% LeasePlan EUR Leasing and fleet management 1.12% Acrisure US Provider of insurance and consulting services 1.05% Infinitas EUR Education content and services 0.97% H-Line Shipping ASIA Gas shipping business 0.93% Wayfair US Online retailer 0.86% Ministry Brands US Software solutions provider for faith-based organisations 0.77%
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Company Date Country Stage Exit route GoPro Jun 2014 US Venture NASDAQ The Trainline Jan 2015 UK Buyout M&A (KKR) Auto Trader Mar 2015 UK Buyout LSE Glaukos Jun 2015 US Venture NASDAQ Worldpay Oct 2015 UK Buyout LSE PhotoBox Oct 2015 UK Venture M&A (Exponent & Electra Partners) China Hydroelectric Corporation Dec 2015 China Venture M&A (Shenzhen Energy) Quotient Clinical Dec 2015 US Venture M&A (GHO) Swissport Feb 2016 EUR Buyout M&A (HNA Group) US Foods May 2016 US Buyout NYSE
As of 31 July 2016, HVPE retains a holding (directly or via an underlying manager) in a number of the public companies listed above. Company names shown for illustrative purposes. 54
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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
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.hvgpe.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 of 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 or 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. Continued on next page
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STRICTLY CONFIDENTIAL 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. The distribution of interests in HarbourVest Global Private Equity Limited (the “Fund”), a closed-ended investment company organised under the law of Guernsey, in Switzerland will be exclusively made to, and directed at, qualified investors (the "Qualified Investors"), as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended ("CISA") and its implementing ordinance. Accordingly, the Fund has not been and will not be registered with the Swiss Financial Market Supervisory Authority (FINMA). The representative of the Fund in Switzerland is Hugo Fund Services SA, 6 Cours de Rive, 1204 Geneva. The Paying Agent in Switzerland is Banque Cantonale de Genève, 17 Quai de l'Ile, CH-1211 Geneva 2, Switzerland. The place of performance for Interests of the Fund offered or distributed in or from Switzerland is the registered office of the Representative. Copies of the Prospectus, Articles of Association and annual and semi-annual reports of the Fund can be obtained free of charge from the Representative.
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The performance information includes realized and unrealized investments. Unrealized investments are valued by the applicable general partner in accordance with the valuation guidelines contained in the applicable partnership agreement. Actual realized returns on unrealized investments will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions on which the valuations used in prior performance data contained herein are based. Accordingly, the actual realized returns on these unrealized investments may differ materially from returns indicated herein. In considering the prior performance information contained herein, investors should bear in mind that past performance is not necessarily indicative of future results, and there can be no assurance that any fund will achieve comparable results or be able to implement its investment strategy.
along with partnership data from external sources. The capital calls and distribution data is based on historic partnership investment cash flows, but does not represent the actual experience of any investor or any HarbourVest fund. The results of the simulation are impacted by an uneven representation of funds with different vintage years, sizes, mangers, and strategies, and a limited pool of investment cash flow data. The actual pace and timing of cash flows is likely to be different and will be highly dependent on the underlying partnerships’ commitment pace, the types of investments made by the fund(s), market conditions, and terms of any relevant management agreements. The results presented are based entirely on the output from numerous mathematical simulations. The simulations are unconstrained by the fund size, market opportunity, and minimum commitment amount, and do not take into account the practical aspects of raising and managing a fund. The simulated hypothetical portfolio results should be used solely as a guide and should not be relied upon to manage your investments or make investment decisions. Past performance is not a guarantee of future returns, and there can be no assurance that future funds or accounts will achieve comparable
investment portfolio, including primary fund investments, secondary investments, and/or direct co-investments. For primary and secondary investments, these returns reflects the fees, expenses, and carried interest of the underlying partnership investments, but do not reflect management fees, carried interest, and other expenses borne by investors in the HarbourVest funds/accounts, which will reduce returns. Gross Portfolio IRR represents the annual return calculated using monthly cash flows from the funds managed by HarbourVest to and from the various partnerships or companies in which the HarbourVest funds invested during the period specified. These returns do not represent the performance of any specific fund or the return to limited partners.
three custom accounts for a single client that made investments primarily in emerging venture capital managers, which was outside of HarbourVest’s core private markets focus. Continued on the next page
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Certain information contained herein (including financial information and information relating to investments) has been obtained from published and non-published
subsequently becomes available, or circumstances existing or changes occurring after the date hereof. These materials do not constitute an offer to sell or the solicitation of an offer to buy interests in any investment sponsored by HarbourVest Partners L.P. or its
solely pursuant to definitive documentation. Offers and sales of interests in the funds will not be registered under the laws of any jurisdiction and will be made solely to “qualified purchasers” as defined in the Investment Company Act of 1940, as amended. These materials do not purport to contain all the information relevant to evaluating an investment in the funds. Past performance is not a guarantee of future success and there can be no assurance that investors in funds will achieve the returns discussed herein. Investments in private funds, involve significant risks, including loss of the entire investment. Before deciding to invest in a fund, prospective investors should pay particular attention to the risk factors contained in the fund documents. Investors should have the financial ability and willingness to accept the risk characteristics of an investment in a fund.
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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
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
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
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 Ground Floor Dorey Court Admiral Park St Peter Port Guernsey GY1 2HT Tel +44 (0)14 8170 2400 Fax +44 (0)14 8170 2407 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