27 May 2010 HarbourVest Global Private Equity Limited Annual Results for the Year Ended 31 January 2010
Contents 1. Financial Highlights 2. Portfolio Composition 3. Commitments and Balance Sheet 4. Subsequent Event: Overview of Liquidity Plan 5. Manager’s Outlook Appendix: � Additional Portfolio Information � Investment Manager CONFIDENTIAL 1
Financial Highlights
year Key Financial Highlights for the Year Ended 31 January 2010 � NAV up 13.7% to $8.65 per share or $718 million – Portfolio invested in 630 underlying partnerships and 5,529 underlying companies – Strategy mix is 38% venture and 59% buyout � Unfunded commitments down $60 million or 8.7% to $623 million – Commitment coverage significantly improved to 64% on a total basis and 89% on an allocated basis – Additional exposure to $38 million of new primary funds and $16 million of secondary and direct investments � Cash outflows for the year of $22 million versus $45 million of outflows in prior – $11.8 million positive cash flow in fourth financial quarter � $75 million outstanding at fiscal year-end on $500 million credit facility CONFIDENTIAL 3
Jan 1/09 – 1/10 Change Jan 31 31 % $ 2010 2009 HVPE – Year Ended 31 January 2010 Summary NAV $718.2 $631.3 $86.9 14% NAV per Share $8.65 $7.61 $1.04 14% Commitments $623.0 $682.5 ($59.5) (9%) Financial NAV of Investments $783.4 $668.1 $115.3 17% Performance $55.8 4% Total PE Exposure $1,406.4 $1,350.6 Cash & Available Credit Facility $399.6 $352.3 $47.3 13% % Invested 109% 106% 3% Commitment Level Ratio 196% 214% (18%) Commitment Coverage Ratio 64% 52% 12% � Oriel Securities appointed corporate broker May 2009 � Lock-up expired on all remaining shares held by “rolling” shareholders December 2009 Key Events � JP Morgan Cazenove appointed joint corporate broker April 2010 Since � Announcement of Liquidity Plan April 2010 31 January 2009 � Listing on Specialist Fund Market of LSE and Secondary Placing May 2010 � £10 million investment in HarbourVest Senior Loans Europe Limited May 2010 CONFIDENTIAL 4
Gain of $1.04 in NAV per Share Driven by Positive Revaluations and Appreciating Euro NAV per Share ($) $0.17 $9.00 $0.33 $0.00 $8.65 ($0.27 ) $0.37 $8.50 $0.44 $8.00 $7.61 $7.50 $7.00 NAV at 31- HarbourVest HarbourVest HarbourVest HarbourVest Unrealised Operating NAV at 31- January-09 U.S. Funds International Direct Funds Secondary Foreign Expenses January-10 Funds Fund Currency Gains CONFIDENTIAL 5
Portfolio Composition
HVPE has a Distinct Three-Tiered Investment Structure � Interests in 20 HarbourVest-managed Private Equity Exposure (3) Private Equity Exposure (3) funds (1) � Comprised of 630 $175 million Unfunded Commitments fund interests across (Not Allocated to Underlying Partnerships) (2) multiple high-quality managers (1) � Exposure to 5,529 company investments $448 million Unfunded Commitments (Allocated to Underlying Partnerships) (directly or indirectly) (1) � $623 MILLION TOTAL UNFUNDED COMMITMENTS NAV split approximately 63% primary, $783 MILLION NAV OF INVESTMENTS 20% secondary and 17% direct $1,406 million investments at Total Private Equity Exposure 31 January 2010 � No duplication of fees ________________ 1. HVPE portfolio exposure as of 31 January 2010 2. At 31 January, approximately $175 million of HVPE’s total unfunded commitments of $623 million represent commitments to HarbourVest funds that have not yet been committed to underlying partnerships. CONFIDENTIAL 7 3. Private Equity Exposure equals sum of NAV of Investments and Unfunded Commitments
Geography Strategy Industry Vintage Diversification of Portfolio Based on NAV at 31 January 2010 � ROW Portfolio provides Asia- Other Early Stage Large 4% Pacific access to a broad 3% Venture Buyouts 4% 14% 10% cross-section of private equity Balanced Europe Venture 28% investments 12% Medium Buyouts Venture / U.S. � 38% venture 30% Growth 64% Equity 12% Small � 64% U.S. Buyouts 19% � Minimal exposure to large buyouts Business 1993 - Consumer Services 2009 Other Media / 1998 18% 2008 � Well-diversified by 5% 1% 1999 6% Telecom 5% 7% 6% 13% vintage year and Products 2007 2000 12% 13% 9% industry Industrial Other 9% 7% 2001 Financial � No concentration in Tech Services 2006 7% 11% 22% 4% recent vintages 13% Other Software 2002 5% 11% 5% Cleantech 2005 Medical / 2003 3% 2004 11% Biotech 10% 9% 18% ________________ The diversification analysis is based on the fair value of the underlying investments. Strategy, vintage, and geography diversification are based on the net asset value of partnership investments within HVPE’s fund-of-funds and company investments within HVPE’s direct funds. Industry diversification is based on the reported value of the underlying company investments. Some of the funds held in HVPE have not been fully invested. The composition of investments by strategy, vintage, industry, and geography may change as additional investments are made and existing investments are realised. Large buyout includes funds of more than $7 billion in size, medium buyout includes those between $1 billion and $7 billion in size, and small buyout includes those less than $1 billion in size. Direct investments in operating companies are categorised by deal size. CONFIDENTIAL 8
Investments $783.4 Million Companies 5,529 NAV of Strategy Diversification by Companies and NAV � Venture investments 100% represent 67% of Early Stage Venture companies but only 38% 90% 14% Early Stage of NAV Venture Balanced Venture � Buyout investments 80% 32% 12% represent 28% of Venture / Growth companies and 59% of 70% Equity NAV 12% 60% � Largest average Balanced Venture Small Buyouts investment is in medium 25% 19% 50% buyouts Venture / Growth 40% Equity 10% 30% Small Buyouts Medium Buyouts 9% 30% Medium Buyouts 20% 10% Large Buyouts 10% Large Buyouts 9% 10% Other, 5% Other, 3% 0% % of Companies % of NAV ________________ Company data is based on the classification of the partnership that holds the company investment. Where company investments are held across multiple partnerships with different classifications, the company has been classified as the strategy of the largest position. NAV data is based on partnership CONFIDENTIAL 9 classification.
Buyout Outperformed Venture in Year Ended 31 January 2010 Performance by Strategy 31 January 2009 – 31 January 2010 Portfolio Strategy Venture and Buyout Strategy Early Balanced Growth Small Medium Large Total Total Venture Venture Equity Buyout Buyout Buyout HVPE Venture Buyout Total Other % of 14% 12% 12% 19% 30% 10% 38% 59% 3% NAV 45% 45% 41% 40% 40% 35% 35% 31% 30% 30% 26% 25% 25% 18% 20% 20% 15% 15% 13% 15% 15% 10% 10% 7% 7% 5% 5% 0% 0% 0% Year Ended -18% -15% -15% -26% -30% -54% 31/01/2009 -25% -16% -32% -22% Strategy Performance ________________ Based on NAV of Investments, adjusted for cash flows; Data includes primary, secondary and direct investments CONFIDENTIAL 10 See diversification note on slide 8
Portfolio Diversification by Investment Period Buyout / Other � Vintage Years go back Venture to 1993 Vintage Year Diversification (1) Year of Investment Diversification (2) � Years of Investment go back to 1987 1993 - 1998 1987 - 1998 5% 2% � Buyouts from the 1999 1999 6% 2% 2005 – 2007 Year of 2000 2000 9% 4% Investment represent 29% of NAV 2001 2001 11% 4% – Large buyouts 2002 2002 5% 5% from this period 2003 2003 7% 10% represent 9% of NAV 2004 2004 9% 13% 2005 2005 11% 18% 2006 2006 13% 15% 2007 2007 13% 13% 2008 2008 7% 13% 2009 2009 1% 4% 0% 5% 10% 15% 20% 0% 5% 10% 15% 20% ________________ As reported in HVPE’s Annual Report for the year ended 31 January 2010; Numbers at end of bar represent total % of NAV represented by the relevant Vintage Year or Year of Investment See diversification note on slide 8 (1) Vintage Year represents year of first draw for primary and direct funds, and year of purchase for secondary investments CONFIDENTIAL 11 (2) Year of Investment represents year of investment for all underlying companies
Largest 25 Underlying Companies at 31 January 2010 � In aggregate, top 25 investments represent 20.6% of NAV � The five largest investments represent 8.9% of NAV � No investment is greater than 3.2% of NAV and only five investments are greater than 1% � Direct holdings represent 16 of the top 25 holdings � From 31 July 2009 through 26 May 2010, 6 of the previous top 25 have had liquidity events ________________ Companies in bold are held at least in part in HarbourVest direct funds * Shenzhen Development Bank partially sold in May 2010 † Brenntag Group completed an IPO in March 2010, and Amadeus Global Travel Distribution completed an IPO in April 2010 ‡ Company not included in top 25 at 31 July 2009 CONFIDENTIAL 12 § Invitel Holdings A/S de-listed in February 2010
Commitments and Balance Sheet
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