harbourvest global private equity ltd./media/files/h/hvgpe/reports... · slightly due to recent...

HarbourVest Global Private Equity Ltd.

Analyst Presentation

10 February 2016

HVPE Update

HarbourVest CONFIDENTIAL

Chairman’s Review

2

FTSE 250 inclusion

Recent market action

Balance sheet

Note: past performance is not an indication of future results.

0

200

400

600

800

1000

1200

1400

1600

2011 2012 2013 2014

$10.24 NAV per Share




$850 $944

$1,030 $1,167

(▲18%) (▲12%)

(▲9%) (▲15%)

HVPE NET ASSET VALUE GROWTH ($ millions except per share data)


$1,266 (▲10%)

2015 January

$1,352 (▲7%)

2015 December



HVPE Factsheet

3

Investment strategy has remained focused since launch

HVPE is now the fourth largest listed PE investment company in London

NAV performance over all time periods since inception has been very strong

* Share price data as of market close, 8th February 2016

Key data points 31 December 2015 / Current*

NAV $1,352 million

Market capitalisation $1,037 million

NAV/share USD (GBP) $16.93 (£11.74)

Share price USD (GBP) $12.98 (£9.01)*

Discount to NAV 23.3%

NAV growth, 5 years USD (GBP) 75% (90%)

Share price growth, 5 years USD (GBP) 168% (191%)

Total shares in issue 79.9 million

Shares traded, year to 3rd Nov 2015 9.9 million (avg. 39,000 / day)

Shares traded, 4th Nov to 8th Feb 2016 13.1 million (avg. 196,000 / day)


HVPE Model Overview

4

HVPE is designed to provide access to a range of private market investments

Invests in and alongside HarbourVest funds

HarbourVest funds in turn make investments into private market funds and operating

companies

HVPE

Primary

50%

Secondary

34%

Direct

16%

Buyout

65%

VC & Growth

35%

Consumer / Financial

35%

Technology / Telecom

31%

Industrial /

Other

18%

33 HarbourVest Funds + 2 Co-Investments

788 Funds / Partnerships

6,812 Operating Companies

Medical /

Biotech

16%


NAV Total Return

5

HVPE total NAV return including the total distributions of $0.49 per share is now 69% since

inception, representing annual growth of 6.6% vs. 2.3%* for the MSCI ACWI on a total return basis

*Compound annual growth rate calculated through 31 December 2015. Note: past performance is not an indication of future results

$10.39

$7.61

$8.65

$10.24

$11.42 $12.45

$14.38

$15.86 $16.93

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

HVPE NAV

MSCI ACWI TR

HVPE Share Price

Total Return Jan

2008

Jan

2009

Jan

2010

Jan

2011

Jan

2012

Jan

2013

Jan

2014

Jan

2015

Dec

2015

HVPE NAV $10.39 $7.61 $8.65 $10.24 $11.42 $12.46 $14.38 $15.86 $16.93

3.9% (26.8%) 13.7% 18.4% 11.5% 9.1% 15.4% 10.3% 6.7%

MSCI ACWI 571.4 332.7 465.1 554.7 538.2 621.5 704.0 755.8 753.5

(8.7%) (41.8%) 39.8% 19.3% (3.0%) 15.5% 13.3% 7.4% (0.3%)

Cumulative Return

(6 Dec 07 – 31 Dec 15)

HVPE NAV 69.3%

HVPE Share Price 34.4%

MSCI ACWI TR 20.4%

$13.44


NAV Portfolio Breakdown - Detail

6

HVPE has minimal exposure to the energy and banking sectors

Significant exposure to software, technology and biotech arising primarily from the venture

portfolio

Balanced by more traditional healthcare, consumer and industrial businesses

Data as of 31 December 2015.

12.5%

11.6%

10.7%

9.1%

7.7% 7.0%

5.6% 5.6%

4.7% 4.5% 3.8%

3.4% 3.3% 2.9%

2.3% 1.7%

3.6%

HVPE NAV: Sector Breakdown, 31 December 2015

Private Equity Market Overview


Fundraising Investments

Pipeline remains robust

LP demand doesn’t appear to be letting up but may be impacted by public market declines

Oversubscription and rapid fundraises consistent across proven managers

Relationship and access are key

GPs highly selective due to elevated pricing as the economy moves sideways

Volatility in markets should create buying opportunities

Investment activity expected to modestly improve, but catalyst needed for a significant increase – corporate M&A may be the key

Liquidity Companies to Watch

Anticipate another strong year of liquidity after

two years of record setting distributions

Expectations, however, should be tempered

slightly due to recent volatility in capital markets

and in the global macro economic environment

U.S. buyout outlook

8

The companies listed above are intended for illustrative purposes only. While these are actual investments in a HarbourVest portfolio, there is no guarantee they will be in a future

portfolio.


Fundraising Investments

Robust pipeline of opportunities in early 2016

– Some managers pursuing funds for brand extension

Top-tier managers oversubscribed at premium terms

Continued selectivity among LPs leads to “Haves” and “Have-

Nots”

– LPs backing fewer managers with larger commitments

– Herd mentality pursuing the “Haves”

Liquidity expected to continue to drive future commitments

Time between venture manager fundraises decreasing to

about three years

Pace of innovation creating rich investment landscape

– Consumer and enterprise represent large markets

undergoing technological and business model change

– Mobile / Social / Cloud & Big Data / Device, Storage,

Networking / Security / etc.

Fewer fund formations reduce competition

Early stage investment valuations attractive but late stage

rounds commanding high valuations

– Better ecosystem for portfolio company success

Companies staying private longer to reach larger scale before

going public – raising larger growth rounds

Liquidity Companies to watch

High-growth companies generating exciting returns in steady

macro environment

Companies preparing for IPOs are stronger than ever;

however, recent market volatility could delay some exits, and

some IPOs being priced below latest venture round

After-market stock performance important to continued IPO

activity

Continued interest from strategic acquirers looking for new

growth opportunities

U.S. venture outlook

9

The companies listed above are intended for illustrative purposes only. While these are actual investments in a HarbourVest portfolio, there is no guarantee they will be in a future

portfolio.


Significant increase in European fundraising activity as managers take advantage of increased LP appetite

10

Funds Raised

Source: Thomson Reuters as of January 12, 2015.

The funds and general partners listed above are intended for illustrative purposes only. While these are actual investments and relationships in a HarbourVest portfolio, there is no

guarantee they will be in a future portfolio.

2015 fundraising levels up 42% on 2014,

supported by large cap managers:

- Bridgepoint Europe V (€4bn)

- PAI Europe VI (€3.3bn)

- Equistone Europe V (€2.0bn)

- EQT VII (€6.75bn)

- Montagu V (€2.75bn)

Trend expected to continue through to H1

2016:

- Charterhouse €3bn

- Advent €12bn

- BC Partners €7bn

- KKR Europe €3.5bn

Top performing GPs raising larger funds,

oversubscribed, and in a short time frame.

Number of Funds Raised and Average Fund Size (line)

# o

f F

un

ds

€ B

illio

ns

39

71

105 103 96

52

32

50

36

49 61 53

€ 0

€ 200

€ 400

€ 600

€ 800

€ 1,000

0

20

40

60

80

100

120

'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

€ M

illio

ns

€18

€9

€47

€58

€36

€63

€8 €7

€26

€19

€33 €34

€48

€0

€20

€40

€60

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Over €2bn


European deal activity has increased but remains well below the 2007 peak

2015 transaction volumes up 38%

vs 2014

2015 transactions <€1 billion

driving increased deal activity, up

75% on 2014

2015 buyout activity has reached a

new post-GFC high

Increased activity mirrored in the

wider M&A space

Transaction Value by Deal Size (EV)

Source: Incisive Media, MergerMarket as of January 12, 2015

€ B

illio

ns

Buyout Transaction Value and European M&A

11

€ B

illio

ns

€130

€199

€225

€88

€35

€77 €79 €74 €82 €90

€125

€0

€500

€1,000

€1,500

€0

€100

€200

€300

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15

Buyouts Total M&A

16% 18% 10% 10% 14% 14% 12% 15% 12% 11% Buyouts %

of M&A 15%

€130

€199

€225

€88

€35

€77 €79 €74 €82

€90

€125

€0

€50

€100

€150

€200

€250

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

>€1B €500-1B

€250-500M €100-250M

€0-100M


European exits have been very strong, with an increasing share from IPOs

12

Source: Incisive Media, MergerMarket as of January 12, 2015.

The companies listed above are intended for illustrative purposes only. While these are actual investments in a

HarbourVest portfolio, there is no guarantee they will be in a future portfolio.

€ B

illio

ns

€ B

illio

ns

M&A Exits

IPO Exits

2015 IPOs(1)

€ 2

€ 9

€ 16 € 13

€ 15

€ 1 € 2

€ 15

€ 8

€ 3

€ 19

€ 35 € 39

€0

€10

€20

€30

€40

€50

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

€30

€62

€110

€121

€156

€65

€25

€74

€99 €89

€67

€133

€148

€0

€50

€100

€150

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15


In Europe and the US, prices are near 2007 levels, albeit with much healthier interest coverage

13

Source: Standard & Poor’s Leveraged Commentary & Data Q4 2015

Purchase Price / LTM EBITDA for LBOs

‘07 ‘15

xLTM EBITDA

€250-500m 9.5x 9.0x

>€500m 10.3x 10.2x

<€250m 8.8x N/A

‘07 Q4 ‘15

Average EBITDA / cash interest

LBOs 2.4x 3.8x

Euro. Total 9.7x 9.2x

US Total 9.7x 10.1x

>€1bn 10.0x 10.4x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

<€250m €250-500m >€500m

>€1bn Europe Total US Total

% change

versus

2007

+4%

+6%

-1%

-7%

-5%

Primary Fund Investing Opportunities


Principal challenges facing investors

15

Hundreds of experienced managers

Frequent

monitoring of

manager

developments

Resources to proactively seek leading managers

Dedicated team to identify and evaluate best opportunities

Creating long-term

relationships

Access to oversubscribed

funds


HarbourVest’s long-term philosophy seeks to maximize returns while simultaneously managing risk

Focus on markets with strong fundamentals

Leverage HarbourVest network to source and

access most promising investment

opportunities

Invest with teams that have demonstrated

strong performance

16

Maximizing Returns

Diversify commitments across vintage years

Participate across all segments of private

markets; buyout, growth equity, venture,

credit

Diversify across a variety of industry

segments

Managing Risk

Build a broadly diversified portfolio with the

objectives of low volatility and meaningful

outperformance of public indices

Invest opportunistically in a combination of primary, secondary, and direct co-investments


Profile of primary investments

Foundation of a private equity program

Targeted portfolio construction

Access to leading managers

Long-term driver of returns

Active engagement

17

Why Invest in Primary Program?

Fund managers invest capital into

companies over 3-5 years

Realizations usually begin after

companies have time to develop (4-5

years)

Typically have negative IRRs (J-curve)

early in the investment period given

time necessary to build portfolio value

What is the profile of a Primary Investment?


HarbourVest primary capabilities

18

Primary highlights

Experienced Team

26 senior team members with average firm tenure

of 11 years

Highly Selective

Invest in less than 5% of the market

Active Relationships

Seek advisory board representation to enhance

oversight

35 dedicated investment professionals

$30 billion deployed in over 300 GP relationships

since 1982

Over 80% advisory board representation

Secondary

Investments

Direct

Investments

Primary

Partnerships

Data as of 30th June 2015.


HarbourVest global manager relationships

19

Deep relationships across the global markets

The general partners listed above are intended for illustrative purposes only. While these are actual investment relationships in a HarbourVest portfolio, there is no guarantee they

will be in a future portfolio.

U.S. VENTURE U.S. BUYOUT SPECIAL

SITUATIONS EUROPE ASIA PACIFIC

EMERGING

MARKETS Accel

Andreessen Horowitz

August Capital

Austin Ventures

Bain Ventures

Battery Ventures

Bessemer Venture Partners

Canaan Partners

Carmel Ventures

Columbia

DCM

Domain Partners

Draper Fisher Jurvetson

Foundation Capital

Galen Partners

Ignition Capital

Insight Ventures

Kleiner Perkins

Lightspeed

New Enterprise Associates

North Bridge Venture Partners

Oak Investment Partners

Redpoint Ventures

Sigma Partners

Spark Capital

Social Capital

Summit

TA Associates

TCV

Third Rock Ventures

Trident

U.S. Venture Partners

Venrock

Versant

ABRY Partners

AIP

Bain Capital

Berkshire Partners

Blackstone Partners

Centerbridge Capital

Charlesbank Capital

Court Square

Endeavour Capital

EOS Capital

GTCR

Harvest Partners

Hellman & Friedman

H.I.G.

Kelso

KKR

KPS Capital

Leonard Green & Partners

Madison Dearborn

Marlin Equity Partners

Nautic Partners

Odyssey Partners

Olympus Partners

Pamlico Capital

Pfingsten

Providence Equity

Sentinel Capital

Silver Lake

SK Capital

Sterling Capital

Stone Point Capital

Sun Capital

The Resolute Fund

Thoma Bravo

Thomas H. Lee Partners

TPG

TSG

Vector Capital

Vestar Capital

Vista Equity Partners

Wellspring Capital

Westview Capital

WCAS

Wicks Capital

ABRY Partners

AION Capital

Alchemy

Centerbridge Capital

Clearwater Capital

Falcon

GSO Partners

HIG Partners

Hutton Collins

Indigo Capital

Oaktree Capital

Summit Partners

Sun Capital

TA Associates

Wayzata

Windjammer

Abenex Partners

Advent International

Alchemy Partners

BC Partners

Capvis Equity Partners

Charterhouse Capital

Chequers Capital

CGS Management

CICLAD

CVC

ECI

EQT

Gilde Partners

H.I.G.

HitecVision

Holtzbrinck Ventures

Hutton Collins

IK Investment Partners

Index Ventures

Indigo Capital

Inflexion

Investindustrial

Litorina

Paragon Partners

Permira Advisers

Quadriga Capital

TDR Capital

Towerbrook Capital

Waterland PE

Accel India

AION Capital

Anchorage

Archer Capital

Bain Capital Asia

Boyu Capital

CHAMP

CHAMP Ventures

ChrysCapital

CITIC

Clearvue Partners

Clearwater Capital

DCM

Everstone Capital

Hahn & Co.

IDG-Accel

India Value Fund

KKR

KV Asia Capital

Legend Capital

Lightspeed Ventures

Northstar Equity

Olympus Capital

Orchid Asia

Quadrant

TPG Asia

Trustbridge Partners

Unison Capital

Actera Partners

Advent Latin America

Baring Vostok

Capitalworks Equity

Carmel Ventures

Da Vinci Capital

Ethos Private Equity

FIMI

Fortissimo Capital

Helios

JVP

Linzor

NG Management

Southern Cross Latin America

Turkish Private Equity

Victoria


Sourcing high quality opportunities

The general partners listed above are intended for illustrative purposes only. While these are actual investment relationships in a HarbourVest portfolio, there is no guarantee they will be

in a future portfolio.

Leveraging

Our Platform Founding

Investor Proactive

Outreach

Unlocking

Access

Long-standing

Relationships

A proactive and differentiated approach to origination

20


Creating returns through varied portfolio strategies

21

Examples of private equity managers with whom HarbourVest has invested. HarbourVest funds may not invest with these managers in the future. Investors should bear in mind

that past performance is not necessarily indicative of future results, and there can be no assurance that future private equity investments will achieve similar results.

Value

Sector Specialists

Growth

Diversified

Capitalize on stress and distress – corporate

carve-outs, out-of-favor industries, turnarounds,

and complex situations

Value orientation and pricing discipline

Identify attractive segments for consolidation

Enhance value through accretive acquisitions

and organic initiatives

Growth capital or buy and build

Identify industry trends and potential downturns

Deep network and operational expertise

Specialization offers competitive advantage

Focus across multiple sectors

Seek attractive returns with lower volatility

https://www.google.com/imgres?imgurl&imgrefurl=http://www.wvcapital.com/&h=0&w=0&tbnid=9EEaGcJX2Q30AM&zoom=1&tbnh=71&tbnw=203&docid=rNdpS7C5EwJnJM&tbm=isch&ei=CrRvVIyrDcuzuASGloKIAw&ved=0CAQQsCUoAA

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Hellman-friedman-logo.png&ei=wnQ9VMfSJYT1yASM1YHwAw&bvm=bv.77412846,d.aWw&psig=AFQjCNH6cevP_OUjU0tc6o2u2vkL3hS53Q&ust=1413400122350051

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Hellman-friedman-logo.png&ei=wnQ9VMfSJYT1yASM1YHwAw&bvm=bv.77412846,d.aWw&psig=AFQjCNH6cevP_OUjU0tc6o2u2vkL3hS53Q&ust=1413400122350051

http://upload.wikimedia.org/wikipedia/en/6/6a/Hellman-friedman-logo.png


Access to market leading companies

Private equity managers have the opportunity to invest in a large pool of companies that are not

available to public market investors

Examples of investments across the private equity industry. Private equity investments involve significant risks, including loss of the entire investment. HarbourVest funds may not

have participated in all of these investments. Investors should bear in mind that past performance is not necessarily indicative of future results, and there can be no assurance that

future private equity investments will achieve similar results.

22

PRIVATE EQUITY

VENTURE BUYOUT

SEED EARLY EXPANSION/LATER

Exit

via

IPO or

M&A


Fund-of-funds performance

23

Outperformance Versus Public Benchmarks

Performance as of September 30, 2015. The performance of the HarbourVest funds appears as a matter of record only since these funds are closed and not accepting new

investors. Net L.P. IRR is a blended return for all limited partners in the fund and may not reflect an individual LPs actual return. Past performance is no guarantee of future returns.

See note for additional information

11.1%

9.9%

24.3%

15.2% 16.2%

8.4% 7.5%

5.5% 6.1%

9.1% 8.1%

2.7% 3.8%

4.0%

6.5%

0%

5%

10%

15%

20%

25%

Fund VIII Venture2006-2011

Fund VIII Buyout2006-2011

Fund IX Venture2011-2014

Fund IX Buyout2011-2014

HIPEP VI Partnership2008-2014

HarbourVest Net IRR

S&P 500

Russell 2000

MSCI World ex-US

MSCI EAFE

4.1% 13.4% 5.3% 3.1% 7.9% Share of HVPE

NAV, 31 Dec 2015

Secondary Opportunities

25 HarbourVest CONFIDENTIAL

Benefits of secondary investing

J-curve mitigation

Near-term liquidity

Faster capital deployment

Immediate diversification

Compelling returns with lower risk

Secondaries offer investors

attractive and differentiated

characteristics


Secondary transaction types

26

Single

Partnership

Interest

Portfolio of

Partnership

Interests

Volu

me

Captive

Team Spinouts

COMPLEX

TRADITIONAL

Joint

Ventures

GP For Hire

Trans.

Take Private

Trans.


Expanding universe of secondary deal types creates opportunity

27

Ineff

icie

ncy

Traditional

Traditional

Public to

Privates

Secondary

Direct

Portfolios

Structured

Liquidity

Solutions

Fund

Restructurings

Traditional

GP for Hire

Captive Team

Spinouts

Time Period

Ineff

icie

ncy

1985 - 2000 2000 - 2010 Today

LP Tender

Offers


Growing market opportunity

28

Source: Thomson Reuters; Cogent Partners

Market growth fueled by growing primary market

Incremental growth drivers

0

10

20

30

40

50

′05 ′06 ′07 ′08 ′09 ′10 ′11 ′12 ′13 ′14 ′15

0

200

400

600

800

1,000

$ B

illio

ns

PE NAV > 5 years old Secondary Market Deal Volume Estimated Secondary Market Deal Volume

$ B

illion

s

Proliferation of whole fund

liquidity solutions

Proactive portfolio

management

Sovereign wealth funds

becoming more active

sellers

Financial institutions have

significant private equity

assets to be divested


Secondary market pricing

29

Source: Greenhill Cogent

Secondary pricing remains “sticky” despite recent market volatility

Highest quality buyout assets trading at or above par

Venture assets pricing at all time high since 2007

Delta remains between mature / tail-end assets and more recent vintages

70%

63%

83% 82% 80% 80%

84%

89%

93% 91% 92%

88%

109%

109%

73%

59%

89% 86% 85% 84%

89% 92%

100%

95% 95%

91%

108%

103%

63%

68%

70%

74% 74%

70%

77% 80%

82% 80%

82%

74%

0

500

1,000

1,500

2,000

50%

60%

70%

80%

90%

100%

110%

120%

’06 ’07 ’08 ’09 ’10 ’11 ’12 (1H)

’12 (2H)

’13 (1H)

’13 (2H)

’14 (1H)

’14 (2H)

’15 (1H)

’15 (2H)

All Buyout Venture S&P 500

Avg. C

losin

g P

rice

‒ S

&P

50

0

Se

co

nda

ry P

ricin

g (

as a

% o

f N

AV

)


Ability to transact at below market prices

12 deals completed representing more than

$2.0 billion in commitments

19.7% discount on complex transactions

30

Secondary Purchases LTM June 30 2015

* Cogent Partners; data as of bid date

** Calculated based on HarbourVest investment at closing

Complex

63%

70%

80%

90%

100%

LTM June 30 Investments

% o

f N

AV

$2.0 Billion NAV

$247 million

in purchase

discount LTM average

market price

(92%)*

HarbourVest

weighted average

purchase price

(88%)**

HarbourVest CONFIDENTIAL 31

Secondary highlights

HarbourVest secondary capabilities

Secondary highlights

Capitalize on Experience


of 12 years

Differentiated Investment Approach

Focus on less efficient parts of the market

HarbourVest Platform

Leverage GP and LP relationships to generate proprietary deal flow and information advantage


Over $13 billion deployed in over 400 secondary

transactions since 1986 Secondary

Investments

Direct

Investments

Primary

Partnerships

Data as of 30th June 2015

32 HarbourVest CONFIDENTIAL

Differentiated approach to portfolio construction

Complex Complex Complex Complex Traditional Traditional Traditional Traditional

Dover VI

2005

Dover VII

2008

Dover VIII

2012

Dover V

2003

Traditional Leverage primary relationships and strategic value to general partners

Be selective, exercise pricing discipline, and focus on higher quality managers

HarbourVest is a market pioneer

– $6.4 billion invested across 900 funds since 1986

Complex Focus on less-efficient segments given experience, skills, and resources required to execute

Leverage HarbourVest platform to enhance competitive positioning

HarbourVest is a market leader

– $6.9 billion invested across 70 deals since 1995

As of September 30, 2015


Project Charlotte

33

The deal summary above is intended for illustrative purposes only. While this is an actual investment in a HarbourVest portfolio, there is no guarantee it will be in a future portfolio

Deal Size $746 million

Closed December 2012

Type Complex- Public to private

Seller Conversus Capital, L.P.

Transaction Dynamic Transaction Structure HarbourVest Advantage

Conversus Capital L.P. (“CCAP”),

Euronext-listed private equity

vehicle, owned diversified portfolio

of over 200 high quality funds well

known to HarbourVest

CCAP adopted permanent

harvesting strategy in late 2011 and

announced it would explore

strategic alternatives to enhance

unit holder value in early 2012

HarbourVest agreed to purchase

investment portfolio of CCAP at

15% discount to June 30, 2012

NAV

Board of CCAP accepted

HarbourVest offer as solution that

addressed needs of diverse unit

holder base

Up to 49.9% of existing CCAP unit

holders can remain invested in

portfolio through an interest in

HarbourVest acquisition vehicle

Guernsey acquisition vehicle

structured to acquire assets in tax

efficient way and to accommodate

rolling CCAP unit holders

HarbourVest will acquire eight

holding partnerships, which hold

CCAP investment portfolio, and

thus gain an indirect interest in over

200 underlying funds

HarbourVest will manage run-off of

portfolio on behalf of our funds and

rolling CCAP unit holders

Demonstrated experience in listed

private equity sector following 2011

acquisition of Absolute Private

Equity (previously listed on Swiss

SIX exchange)

Existing general partner

relationships facilitated our ability to

diligence large, diversified portfolio

in short time frame

Board supported HarbourVest’s

offer and recognized our extensive

experience and knowledge of

private equity


Secondary performance

34





* Dover VIII is currently within its investment period

12.1%

38.0%

5.9%

-3.5% -5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Dover VII2008-2011

Dover VIII2012-2015*

HarbourVest Net IRR

MSCI AC World

3.7% 9.5% Share of HVPE

NAV, 31 Dec 2015

Direct Co-investment Opportunities


Co-Investment Opportunities

36

What is co-investment? Investing into a company alongside another general partner

Why do lead GPs seek

co-investors?

Additional capital and professional resources

Complementary skill set

Avoid partnering with competitive GP

What are the challenges

of co-investing?

Ability to generate sustainable and proprietary co-invest deal flow

Resources to evaluate opportunities both comprehensively and quickly

Selectivity and portfolio monitoring affect performance

How is a co-investment

allocation complementary

to an existing private

equity portfolio?

Exposure to high quality private equity managers

Portfolio diversified across regions, stages, and industries

Favorable fund economics


Co-investment funds provide access to investments at lower cost

37

Assuming a gross 2.25x multiple and 18.4% IRR, a co-investment fund delivers outperformance

of 0.3x TV/TC and 3.3% IRR

Shown for illustrative purposes only. Not intended to project performance. Assumes 100% of committed capital invested and 2.25x gross portfolio return in both

scenarios. Management fees are paid through portfolio proceeds beginning in Year 5. Both scenarios have an identical schedule of gross distributions. IRRs are calculated based

on annual cash flows, assuming capital called in mid-year and NAV as of year-end. IRRs reflect assumption of 18.4% NAV increase in Years 2 through 10. Does not reflect

organizational costs and other fund level operating expenses. No cash balance is modeled, i.e. all fund excess cash is distributed to LPs. The carried interest accrues to the

general partner’s account as it is generated and is paid to the general partner in Years 9 and 10. Co-investment Fund fees and carried interest are based on the terms of

HarbourVest Partners Co-investment Fund IV.

2.1x

1.8x

16.3%

13.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

Co-investment Fund Net Return Traditional GP Fund Net Return

Net

IRR

Net

Tota

l V

alu

e /

Tota

l C

ost

Total Value / Total Cost IRR


Sentiment around co-investing

0-9%

0-9%

10-24%

10-24%

25-49%

25-49%

50-74%

50-74%

75-100% 75-100%

0%

20%

40%

60%

80%

100%

Now In 5 years

38

LPs expect co-investing to play a bigger role

in their portfolios over the next five years…

Data Source: Bain & Company Global Private Equity Report 2015

…influenced by their belief that co-

investments will perform better than fund

investments

Proportion of LPs’ private equity exposure

that is or will be through co-investment or

direct investments

Significantly better returns

Slightly better returns

Similar returns

0%

20%

40%

60%

80%

100%

Column1

Percentage of LPs and their perception of co-

investment performance compared to that of

fund investments


Co-investment market deal segmentation

39

Company logos are representative investments HarbourVest has made since 2014 in each category. While these are actual investment relationships in a HarbourVest portfolio,

there is no guarantee they will be in a future portfolio.

Complexity

Exclu

siv

ity

Syndicated

(Post-closing)

Limited

(Pre-closing)

Exclusive

(Pre-signing)

More than 5 co-

investors

Sole co-investor (co-

underwriter)

Experienced and

trusted team with

proven execution

required

2-4 co-investors


HarbourVest co-investment capabilities

40

Co-Investment highlights

HarbourVest co-investment capabilities

40

Experienced Team


of 12 years

High Quality Deal Flow

Strong, continuous flow of qualified co-investment

opportunities

Proprietary Due Diligence

Nearly 30 years of information on private

equity managers and their investments


Nearly $5 billion deployed in 290 companies since 1989

On average, closed 13 investments per year over the

last 5 years

Secondary

Investments

Direct

Investments

Primary

Partnerships

Data as of 30th June 2015


Proactive sourcing generates highly qualified co-investment opportunities

41

From 2011-2015, HarbourVest completed co-investments alongside 51 GPs

The general partners listed above are intended for illustrative purposes only. While these are actual investment relationships in a HarbourVest portfolio, there is no guarantee they

will be in a future portfolio.

Less than $1.0 billion fund size (23 GPs) Greater than $1.0 billion fund size (28 GPs)


Broad relationships and strong deal flow provide portfolio diversification

42

Significant exposure to small and mid-market investment opportunities

– 56% of deals with enterprise value of $1 billion or less

Broad industry diversification

Deals of varied geography

Based on cost of deals as of September 30, 2015 for Portfolio 4 through Portfolio 7 (2001 through September 30, 2015)

Enterprise Value Geography Industry

<$500M 38%

$500M - $1.0B 18%

$1.0B - $1.5B

9%

$1.5B - $2.0B

4%

$2.0B - $2.5B 10%

>$2.5B 21%

Business Services

4% Consumer

14%

Financial 9%

Industrial 13%

Media - Advertising

4% Medical

12%

Other 6%

Software 16%

Technology 10%

Telecom 12%

Asia 7%

Canada 1%

Emerging Markets

6%

Europe 32%

U.S. 54%


Company profile Digital Insight

This summary is illustrative of the types of deals completed by HarbourVest. It is not indicative of future performance or of the performance of the investments that the funds may

make. Reflects information as reported by the company at the time of investment. While these are actual investment relationships in a HarbourVest portfolio, there is no guarantee

they will be in a future portfolio.

43

Summary

Stage Initial Investment

Buyout July 2013

Business Overview

Industry Financial Services / Technology

Headquarters Menlo Park, California

Company Description Financial technology company that provides online banking, bill pay, and mobile platform software to

regional and community financial institutions. These financial institutions then offer these services to

their customers

Market Summary Demand for online banking has grown significantly over the past decade as consumers exchange

visiting branches with the ease of conducting transactions online. Digital banking products, particularly

mobile solutions, are projected to enjoy robust growth as consumers continue to demand a customized

experience

Key Competitors Fiserv (FISV), Fidelity National Information Services (FIS) and Jack Henry (JKHY)

HarbourVest Advantage Longstanding relationship with Thoma Bravo

Harnessed proprietary investor network to diligence the industry

Secured the largest co-invest allocation due to speed of review, strength of relationship, and

industry knowledge

Investment Thesis Invest in a well-recognized provider of best in class electronic banking solutions

Robust industry growth, particularly within mobile banking solutions

Stable and recurring revenue base with opportunities to improve margins via identified cost

savings


Co-investment returns have exceeded public benchmarks through various market cycles

44





* The 2013 Direct Fund is currently within its investment period.

9.6%

17.7%

3.4%

-3.2% -5%

0%

5%

10%

15%

20%

2007 Direct Fund2007-2013

2013 Direct Fund2013-2015*

HarbourVest Net IRR

MSCI AC World

5.3% 7.9%

Share of HVPE

NAV, 31 Dec 2015


Disclaimer

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 in the prospectus

published on 2 November 2007, in connection with the listing of the Company’s A ordinary shares on Euronext Amsterdam by NYSE Euronext (available at no cost from

www.euronext.com), and 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.

This document and this presentation are being distributed in the United Kingdom only to (a) 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 (the “Order”) or (b) high net worth entities, and other persons to

whom it may otherwise lawfully be communicated, falling within Article 49(2) (a) to (d) of the Order (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.

The Company has been registered with the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten) as a collective investment institution which may

offer participations in the Netherlands pursuant to article 2:66 of the Dutch Financial Markets Supervision Act.

By participating in this presentation or by accepting any copy of this document, you agree to be bound by the foregoing limitations.

45


Disclaimer ctd.

STRICTLY CONFIDENTIAL

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.

46


Forward-Looking Statements

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

events or trends and similar expressions concerning matters that are not historical facts. In some cases, forward-looking statements can be indentified by terms such as

‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘should,’’ ‘‘will,’’ and ‘‘would,’’ or the negative of those terms or other

comparable terminology. The forward-looking statements are based on the Investment Manager’s beliefs, assumptions, and expectations of future performance and market

developments, taking into account all information currently available. These beliefs, assumptions, and expectations can change as a result of many possible events or factors,

not all of which are known or are within the Investment Manager’s control. If a change occurs, the Company’s business, financial condition, liquidity, and results of operations

may vary materially from those expressed in forward-looking statements. Some of the factors that could cause actual results to vary from those expressed in forward-looking

statements, include, but are not limited to: the factors described in this report; the rate at which HVPE deploys its capital in investments and achieves expected rates of return;

HarbourVest’s ability to execute its investment strategy, including through the identification of a sufficient number of appropriate investments; the ability of third-party managers

of funds in which the HarbourVest funds are invested and of funds in which the Company may invest through parallel investments to execute their own strategies and achieve

intended returns; the continuation of the Investment Manager as manager of the Company’s investments, the continued affiliation with HarbourVest of its key investment

professionals and the continued willingness of HarbourVest to sponsor the formation of and capital raising by, and to manage, new private equity funds; HVPE’s financial

condition and liquidity, including its ability to access or obtain new sources of financing at attractive rates in order to fund short term liquidity needs in accordance with the

investment strategy and commitment policy; changes in the values of or returns on investments that the Company makes; changes in financial markets, interest rates or industry,

general economic or political conditions; and the general volatility of the capital markets and the market price of HVPE’s shares. By their nature, forward-looking statements

involve known and unknown risks and uncertainties because they relate to events, and depend on circumstances that may or may not occur in the future. Forward-looking

statements are not guarantees of future performance. Any forward-looking statements are only made as at the date of this document, and the Investment Manager neither

intends nor assumes any obligation to update forward-looking statements set forth in this document whether as a result of new information, future events, or otherwise, except

as required by law or other applicable regulation. In light of these risks, uncertainties, and assumptions, the events described by any such forward-looking statements might not

occur. HarbourVest qualifies any and all of its forward-looking statements by these cautionary factors. Please keep this cautionary note in mind while reading this report.

REGISTERED 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

Member of LPEQ

47


In considering the prior performance information contained herein, prospective investors should bear in mind that past performance is not necessarily indicative of future results, and there can be no assurance that the Fund will achieve comparable results or be able to implement its investment strategy.

The foregoing 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.

1. Net L.P. Internal Rate of Return through the applicable date is the annualized return to limited partners after all fees, operating expenses and carried interest calculated using monthly cash flows to and from limited partners. In this calculation, the final cash flow to limited partners is the fair market value of the limited partners’ capital accounts at the applicable date as determined by the General Partner in accordance with the valuation policies in the applicable Partnership Agreement.

2. Public market comparison represents performance if the respective index had been purchased and sold at the time of the limited partners’ capital calls and distributions, with the remainder held at the date noted. Dividends are not reinvested. The securities comprising the public market benchmarks have substantially different characteristics than the investments held by the HarbourVest funds, and accordingly a direct comparison may not be meaningful.

Includes data (prior to 1998) related to transactions that occurred when the HarbourVest team was affiliated with Hancock Venture Partners, Inc.

Additional information

48

This document has been prepared on the basis that you are an investment professional, is for the sole use of your organization, and should not be shared with any other parties.

In relation to each member state of the EEA (each a “Member State”) which has implemented Alternative Investment Fund Managers Directive (Directive (2011/61/EU)) (the “AIFMD”) (and for which transitional arrangements are not/ no longer available), this document may only be distributed and a Fund may only be offered or placed in a Member State to the extent that: (1) the Fund is permitted to be marketed to professional investors in the relevant Member State in accordance with AIFMD (as implemented into the local law/regulation of the relevant Member State); or (2) this document may otherwise be lawfully distributed and the Fund may otherwise be lawfully offered or placed in that Member State (including at the initiative of the investor).

This presentation is being issued in the United Kingdom by HarbourVest Partners (U.K.) Limited to, and/or is directed at, persons to whom it may lawfully be issued or directed at under the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 including persons who are authorised under the Act (“authorised persons”), certain persons having professional experience in matters relating to investments, high net worth companies, high net worth unincorporated associations or partnerships, trustees of high value trusts. The Fund is only available to such persons in the United Kingdom and this presentation must not be relied or acted upon by any other persons in the United Kingdom. This presentation is exempt from the general restriction in Section 21 of the Act on the communication of invitations or inducements to engage in investment activity on the grounds that it is being issued to and/or directed at only the types of person referred to above. The content of this presentation has not been approved by an authorised person and such approval is, save where this presentation is directed at or issued to the types of person referred to above, required by Section 21 of the Act.

These materials do not constitute an offer to sell or the solicitation of an offer to buy interests in any Fund (the “Fund”) or any other investment sponsored by HarbourVest Partners L.P. or its affiliates. Any offering of interests in any Fund will be made solely pursuant to the Private Placement Memorandum of the Fund and subscriptions will be accepted solely pursuant to definitive documentation. Offers and sales of interests in the Fund will not be registered under the laws of any jurisdiction and will be made solely to “qualified purchasers” as defined in the U.S. Investment Company Act of 1940, as amended. These materials are highly confidential and must be read in conjunction with the Private Placement Memorandum of the Fund. These materials do not purport to contain all the information relevant to evaluating an investment in the Fund.


Additional information

49

The information contained herein is highly confidential and is being provided to you at your request for informational purposes only and is not, and may not be relied on in any manner as, legal, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in any investment sponsored by HarbourVest Partners L.P. or it’s affiliates (the “Fund”). A private offering of interests in the Fund will only be made pursuant to a confidential private placement memorandum (the “Memorandum”) and the Fund’s partnership agreement and subscription documents, which will be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering. The information contained herein will be superseded by, and is qualified in its entirety by reference to, the Memorandum, which will contain information about the investment objective, terms and conditions of an investment in the Fund and will also contain tax information and risk disclosures that are important to any investment decision regarding the Fund. No person has been authorized to make any statement concerning the Fund other than as will be set forth in the Memorandum and any such statements, if made, may not be relied upon. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format without the express written approval of HarbourVest Partners L.P. (together with its affiliates, “HarbourVest”).

Investment in the Fund will involve significant risks, including loss of the entire investment. Before deciding to invest in the Fund, prospective investors should pay particular attention to the risk factors contained in the Memorandum. Prospective investors should make their own investigations and evaluations of the information contained herein. Prior to the closing of a private offering of interests in the Fund, HarbourVest will give investors the opportunity to ask questions and receive additional information concerning the terms and conditions of such offering and other relevant matters. Each prospective investor should consult its own attorney, business advisor and tax advisor as to legal, business, tax and related matters concerning the information contained herein and such offering.

Certain information contained herein (including financial information and information relating to investments) has been obtained from published and non-published sources. Such information has not been independently verified by HarbourVest. Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof.

In considering any performance data contained herein, you should bear in mind that past performance is not indicative of future results. Certain information contained herein constitutes forward-looking statements, which can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue” or “believe” (or the negatives thereof) or other variations thereof. Due to various risks and uncertainties, including those discussed above, actual events or results or actual performance of the Fund may differ materially from those reflected or contemplated in such forward-looking statements. As a result, investors should not rely on such forward-looking statements in making their investment decisions.

None of the information contained herein has been filed with the Securities and Exchange Commission, any securities administrator under any state securities laws or any other governmental or self-regulatory authority. No governmental authority has passed on the merits of the offering of interests in the Fund or the adequacy of the information contained herein. Any representation to the contrary is unlawful.

Issued by HarbourVest Partners (U.K.) Limited, 3rd Floor, 33 Jermyn Street, London SW1Y 6DN registered in England and Wales number 2512083. Authorised and regulated by the Financial Conduct Authority.

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