HarbourVest Global Private Equity Ltd Capital Markets Event 20 June 2019
Outline Tenth consecutive year of net asset value (“NAV”) growth Chairman’s Introduction The Case for HVPE Annual Results – 12 Months to 31 January 2019 Longer Term Performance Appendix // 2
Chairman’s Introduction Sir Michael Bunbury 3
The Case for HVPE & Annual Results Richard Hickman Director, Investment and Operations 4
Complete private markets solution HVPE is a $1.9bn portfolio of 1,000+ material exposures within a listed wrapper Provides access to a broad range of private markets opportunities Well-diversified to limit downside risk from individual holdings NAV per share outperformance of FTSE AW TR of 3.8% since inception $24.09 $21.46 $18.47 $16.75 $15.86 $18.75 $14.38 $17.77 $12.46 $15.03 $11.42 $10.24 $9.25 $12.73 $12.41 $8.65 $10.75 $8.66 $7.61 $6.37 $6.18 $5.00 2016 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019 NAV Per Share Share Price* 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. // 5
Portfolio cannot easily be replicated Structured to provide a complete, fully-managed private markets portfolio HVPE provides access to private companies typically available only to institutional investors Buying shares in HVPE puts an investor on a level playing field with those institutions Aim is to deliver material outperformance of public markets over the long term HVPE 46 HARBOURVEST FUNDS & 7 SECONDARY CO-INVESTMENTS DIRECT PRIMARY SECONDARY 21% 44% 35% GP GP GP GP 1 2 3 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 9,004 companies in the portfolio. Figures as at 31 May 2019. // 6
Strategic diversification HVPE provides well-balanced global exposure to private markets HVPE portfolio comprises multiple uncorrelated elements Enhances consistency of returns over time Aim is to optimise returns over the long run whilst managing downside risk STAGE STRATEGY GEOGRAPHY INDUSTRY 24% 16% 14% 13% 11% 7% 10% Technology Business S. US 54% Primary 44% Buyout 54% Consumer 5% Financial Industrial Medical Energy Secondary 35% Europe 21% Media Venture 31% Asia 18% RA & Mezz 15% Direct 21% ROW 7% Diversification as at 31 May 2019. // 7
The Investment Manager, HarbourVest Partners 8
HarbourVest has a global platform One of the longest established firms in the industry EMEA First investment 1984 Dublin London $22.6 billion committed Toronto Boston Beijing North America Seoul Tel Aviv Tokyo First investment 1982 $40.4 billion committed Hong Kong Bogotá Asia Pacific First investment 1984 $7.2 billion committed Latin America First investment 1994 $0.7 billion committed Expertise across capital structure (equity and debt) and investment types PRIMARY SECONDARY DIRECT CO-INVEST REAL ASSETS $36.8 billion committed $21.2 billion committed $10.8 billion committed $1.8 billion committed As of March 31, 2019. Based on primary, secondary, direct and real assets commitments made by HarbourVest. Indicates HarbourVest team location. // 9
Comprehensive coverage and selection Refined and highly selective process for completing investments globally SECONDARY & REAL ASSETS DIRECT – EQUITY & CREDIT PRIMARY 816 570 742 Funds Sourced Deals Sourced Deals Logged 148 164 95 Funds Reviewed Deals Reviewed Offers and Indications in Depth in Depth 59 53 36 Managers Deals Closed Deals Closed Selected $3.1B Committed $3.6B Committed $2.3B Committed Represents all investment opportunities reviewed and approved for all HarbourVest funds / accounts from January 1, 2018 through December 31, 2018. Number of committed and closed deals in 2018, independent of when they were sourced. Direct deals do not include follow-on investments. // 10
Record of consistent outperformance HarbourVest has outperformed the broader market in the majority of vintage years 2006-2011 2012-2016 // Returns above private equity average in 3 of 6 vintage years // Returns above private equity average in all vintage years 26% 24% 23.5% 22% HarbourVest 20% 21.1% 21.0% Internal Rate of Return (IRR) Private Equity Pooled 20.6% 20.3% 18% 17.4% 16% 16.7% 16.4% 15.9% 14% 15.3% 15.3% 15.1% 15.1% 15.2% 14.0% 12% 12.6% 12.3% 12.5% 10% 11.2% 11.0% 10.8% 10.8% 8% 9.0% 6% 6.3% 4% 2% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 06-'16 Vintage Year 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
HVPE Annual Results – 12 Months to 31 January 2019 12
Performance highlights Tenth consecutive year of net asset value growth NAV growth in year of 12.3% in USD (21.5% in GBP) Share price increase of 13.9% in GBP 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 // 13
Commitments, Investment & Distributions Net investor during the period 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 All values in millions, except percentage data. Past performance does not indicate future results. // 14
Commitments to 31 January 2019 Total of $730 million committed to five HarbourVest funds HARBOURVEST FUND DESCRIPTION TOTAL AMOUNT HarbourVest Fund XI US-focused fund-of-funds $385.0m 2018 Global Fund Global multi-strategy fund-of-funds $70.0m HarbourVest Adelaide Real assets vehicle $150.0m Secondary Overflow III Secondary co-investment vehicle $75.0m HarbourVest Co-Invest V Global co-investment fund $50.0m TOTAL $730.0m // 15
Commitments since 31 January 2019 Total of $95 million committed to three HarbourVest funds HARBOURVEST FUND DESCRIPTION TOTAL AMOUNT Global Fund 2019 Global multi-strategy fund-of-funds $25.0m Credit Opportunities Fund II US-focused credit fund $20.0m Dover Street X Global secondary fund $50.0m TOTAL $95.0m // 16
Balanced profile of investment vintages Consistent investment over multiple vintages improves risk adjusted returns Wide exposure to a number of investments at different stages of the lifecycle Profile helps to stabilise investment returns and leads to more predictable cash flows No single year accounts for more than 18% of the portfolio by value Year of Investment Vintage Year 18% 18% Percentage of Investment Portfolio 16% 15% 14% 12% 11% 11% 9% 9% 7% 7% Venture/Growth Equity 6% 6% 6% 6% Direct co-investment 5% 4% 1% 1% 1% 3% 3% 3% 2% 2% 2% 2% Real Assets Asia Pacific Secondary < 2006 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Primary Europe Buyout Other ROW US Mature Growth Investment Vintage exposure calculated as a percentage of HVPE’s investment portfolio, based on reported values at 31 January 2019. Past performance does not indicate future results. // 17
Investment Portfolio movement $218.4m of investment portfolio value growth Direct co-investments outperformed Primary and Secondary investments Venture and growth equity led all other stages US and Asia Pacific were the strongest performing regions STRATEGY STAGE GEOGRAPHY 19.5% 16.2% 14.7% 13.1% Venture/Growth Equity 11.4% 11.3% Direct co-investment 10.8% 10.5% 10.5% 10.2% Real Assets Asia Pacific Secondary 3.0% Primary Europe Buyout Other ROW US Past performance does not indicate future results. // 18
Portfolio company metrics Analysis of 948 companies representing 31% of total NAV Weighted average EBITDA increase over the previous year is 13% 76% of the underlying companies increased EBITDA during the year Approximately 74% of these companies are growing EBITDA by more than 10% per annum Overall valuation multiple is 11.2x EBITDA Overall debt multiple is 4.5x EBITDA The sample of portfolio companies used for this analysis changes period on period, based on the information available to the Company at the time. Past performance does not indicate future results. // 19
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