Half-year Report

24 October 2024

HVPE RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2024

Resilient performance

Outlook increasingly positive

HarbourVest Global Private Equity Limited ("HVPE" or the "Company"), a FTSE 250 investment company with global exposure to private companies, managed by HarbourVest Partners, today announces its unaudited results for the six months ended 31 July 2024.

Net asset value ("NAV") growth

·    NAV per share growth of 3.0% in the half-year to a new high of $51.98 (31 January 2024: $50.47)

·    Steady improvement in exit numbers, driven by M&A, with an increase of 37% compared to the six months to 31 July 2023, and realised at an average 29% premium to carrying value

·    HVPE was a net investor over the period, with $134m cash invested.

Long term outperformance of public markets continues

·    Over the 10 years to 31 July 2024, HVPE has delivered growth in NAV per share of 239%, while the FTSE All-World Total Return (FTSE AW TR) Index returned 144% (USD)

·    Underlines the benefits of HVPE's diversification and high-quality portfolio.

Significant distribution pool and increased balance sheet flexibility

·    Distribution Pool initiated 1 February 2024, ring fencing capital to be deployed for share buybacks or special dividends

·    $45 million shares repurchased in 6 months to 31 July 2024, with HVPE actively buying back shares on 39 of the 126 trading days in the six month period

·    From September 2022 to 18 October 2024,  we bought back $120m of shares, adding 2.7% to NAV per share - making it one of the largest share buyback programmes in the sector

·    New Revolving Credit Facility of $1.2bn secured, giving additional working capital headroom and greater flexibility in capital allocation decisions.

Well-positioned to benefit from upturn in private market activity

·    Signs of steadily improving investor confidence, in spite of ongoing macro and geopolitical challenges

·    Investment environment increasingly supporting a more active phase in the private markets cycle

·    Exits expected to continue improving, supporting cash realisations and HVPE's Distribution Pool, to the benefit of shareholders.

Ed Warner, Chair of HVPE, said:

"I am pleased to report steady growth in HVPE's net asset value (NAV) in the first six months of this financial year, as well as signs of a recovery in the Company's share price. This reflected a gradual improvement in global economic and financial market conditions, as well as the early positive effect of the Distribution Pool introduced by the Board at the start of the year.

"However, with short-term UK political uncertainty weighing on investor sentiment, gains in our shares during the first six months of the financial year were subsequently eroded. We view the future for HVPE with confidence and believe that the current share price in no way reflects the performance by the Company over many years and the opportunities in private markets that we foresee ahead."

Semi-Annual Report and Accounts

To view the Company's Semi-Annual Report and Accounts please visit HVPE's results centre: https://www.hvpe.com/shareholders/results-centre/. Page number references in this announcement refer to pages in this report. The Semi-Annual Report and Accounts will also shortly be available on the National Storage Mechanism, which is situated at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism

Semi-Annual Results Presentation

HVPE will publish a new presentation on its website to supplement the publication of the Semi-Annual Results for the six months ended 31 July 2024. The presentation will be available to view and download from http://www.hvpe.com by the close of business today.

                               -   ENDS   -

LEI: 213800NBWV6WWV8TOL46

Enquiries:

Notes to Editors:

About HarbourVest Global Private Equity Limited:

HarbourVest Global Private Equity Limited ("HVPE" or the "Company") is a Guernsey-incorporated, closed-end investment company which is listed on the Main Market of the London Stock Exchange and is a constituent of the FTSE 250 index. HVPE is designed to offer shareholders long-term capital appreciation by investing in a private equity portfolio diversified by geography, stage of investment, vintage year, and industry. The Company invests in and alongside HarbourVest-managed funds which focus on primary fund commitments, secondary investments and direct co-investments in operating companies. HVPE's investment manager is HarbourVest Advisers L.P., an affiliate of HarbourVest Partners, LLC, an independent, global private markets asset manager with over 42 years of experience.

About HarbourVest Partners, LLC:

HarbourVest is an independent, global private markets firm with over 42 years of experience and more than $127 billion of assets under management as of March 31, 2024. Our interwoven platform provides clients access to global primary funds, secondary transactions, direct co-investments, real assets and infrastructure, and private credit. Our strengths extend across strategies, enabled by our team of more than 1,200 employees, including more than 230 investment professionals across Asia, Europe, and the Americas. Across our private markets platform, our team has committed more than $59 billion to newly-formed funds, completed over $55 billion in secondary purchases, and invested over $40 billion in direct operating companies. We partner strategically and plan our offerings innovatively to provide our clients with access, insight, and global opportunities.

This announcement is for information purposes only and does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in any jurisdiction and should not be relied upon in connection with any decision to subscribe for or acquire any Shares.  In particular, this announcement does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in the United States or to US Persons (as defined in Regulation S under the US Securities Act of 1933, as amended ("US Persons")).  Neither this announcement nor any copy of it may be taken, released, published or distributed, directly or indirectly to US Persons or in or into the United States (including its territories and possessions), Canada, Australia or Japan, or any jurisdiction where such action would be unlawful. Accordingly, recipients represent that they are able to receive this announcement without contravention of any applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business. No recipient may distribute, or make available, this announcement (directly or indirectly) to any other person. Recipients of this announcement should inform themselves about and observe any applicable legal requirements in their jurisdictions.

The Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and, accordingly, may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, within the United States or to US Persons.  In addition, the Company is not registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act") and shareholders of the Company will not have the protections of that act.  There will be no public offer of the Shares in the United States or to US Persons.

This announcement has been prepared by the Company and its investment manager, HarbourVest Advisers L.P. (the "Investment Manager"). No liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of this announcement is accepted and no representation, warranty or undertaking, express or implied, is or will be made by the Company, the Investment Manager or any of their respective directors, officers, employees, advisers, representatives or other agents ("Agents") for any information or any of the opinions contained herein or for any errors, omissions or misstatements. None of the Investment Manager nor any of their respective Agents makes or has been authorised to make any representation or warranties (express or implied) in relation to the Company or as to the truth, accuracy or completeness of this announcement, or any other written or oral statement provided. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts contained in this announcement and nothing in this announcement is or should be relied on as a promise or representation as to the future.

Other than as required by applicable laws, the Company gives no undertaking to update this announcement or any additional information, or to correct any inaccuracies in it which may become apparent and the distribution of this announcement. The information contained in this announcement is given at the date of its publication and is subject to updating, revision and amendment. The contents of this announcement have not been approved by any competent regulatory or supervisory authority.

This announcement includes statements that are, or may be deemed to be, "forward looking statements".  These forward looking statements can be identified by the use of forward looking terminology, including the terms "believes", "projects", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could", "should" or "continue" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding the intentions, beliefs or current expectations of the Company.  By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's ability to control or predict. Forward looking statements are not guarantees of future performance. More detailed information on the potential factors which could affect the financial results of the Company is contained in the Company's public filings and reports.

All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results.

This announcement is issued by the Company, whose registered address is BNP Paribas House, St Julian's Avenue, St Peter Port, Guernsey, GY1 1WA

© 2024 HarbourVest Global Private Equity Limited. All rights reserved.

Chair's statement

I am pleased to report steady growth in HVPE's net asset value (NAV) in the first six months of this financial year¹, as well as signs of a continued recovery in the Company's share price. These reflect a gradual improvement in global economic and financial market conditions, as well as the early positive effect of the Distribution Pool introduced by the Board at the start of the year.

Gains in our share price during the first six months of the year were, however, subsequently eroded after the period end, resulting in a widening of the discount to NAV at which HVPE's shares trade. We believe there are a number of reasons for this, most notably a result of nervousness in the UK market ahead of the new government's Autumn budget and potential changes to the tax regime. 

We believe this share price discount does not reflect the high quality of HVPE's portfolio and a brightening macro backdrop. We have seen recent liquidity events that demonstrate the desirability of the assets in HVPE's portfolio and which suggest that the current discount level is unjustified. Accordingly, we will continue to market vigorously the merits of the Company to investors and use the Distribution Pool to buy back HVPE's shares, as we have been doing consistently and in large volumes in recent months.

Financial performance

HVPE's NAV per share increased by 3.0% in the half year to $51.98, a level 3.7% higher than twelve months previously and a new high. Our share price rose to £26.10 over the same period, a 12.7% increase in the half year. The net effect of these movements was a narrowing of the shares' discount to NAV from 42% to 34%¹ in the six months under review. As previously mentioned, the share price deteriorated after the period end, closing at £23.20 on 18 October 2024.

For reference, the FTSE All World Index delivered a total return of +12.6% in the half year and +17.6% over the twelve months to 31 July 2024. However, over the long term, HVPE has consistently outperformed global stock markets, with HVPE's NAV per share delivering an annualised total return of +13.0% in dollar terms and a relative annualised outperformance of +3.6% of the FTSE All World Index over the 10 years to 31 July 2024. Over the past decade, HVPE has grown its NAV per share by 239% and its shares have risen by 268% in sterling terms. By contrast, the FTSE All World Index has provided a total return of 144%. Public markets tend to be more volatile than private markets especially during periods of uncertainty, and therefore we believe short-term comparisons are less meaningful. Longer-term evaluations through the cycle are more reflective of HVPE's performance and strategy.

^{1              The discount is calculated based on the NAV per share available to the market at the period end, that being the 30 June 2024 estimate converted to sterling at the prevailing GBP/USD foreign exchange ("FX") rate, compared with the share prices on 31 July 2024. Please refer to the Alternative Performance Measures ("APMs") on pages 62 to 65 for calculations.}

Significant Distribution Pool benefitting shareholders

At the start of this financial year, the Board and Investment Manager introduced a new capital allocation policy. Its centrepiece is a Distribution Pool that is seeded in its first year with $75 million that would otherwise have been committed to a new HarbourVest investment vehicle. This is added to each month with sums equal to 15% of the cash received from HVPE's underlying investment portfolio, with the Pool accumulating up to a maximum balance set by the Board. The Pool is then available to be used to return capital to investors through share buybacks or dividends.

We believe that this new policy and Distribution Pool are transparent and straightforward to administer. This is an 'evergreen' policy in which the Pool grows whenever HVPE receives cash from an investment, with no costs or charges deducted. As a result, funds will be available for distribution to shareholders through share buybacks or dividends throughout the economic and investment cycles. The new policy is designed to benefit shareholders by increasing the liquidity of the Company's shares, supporting its share price, and potentially reducing the discount to NAV at which it trades.

Each month, we announce the latest balance of the Distribution Pool as well as its inflows and uses. At 31 July 2024, the Pool stood at $37m, having received $50m of the $75m of seed funding as well as contributions from portfolio distributions. We were active buying back shares on 39 of the 126 trading days in the six months, with a total of $45m purchased. The net effect was a $0.40, or 0.8%, accretion to NAV per share.

Since the end of the half year², the Pool has received the final $25m of seed funding and we have bought back a total of $19m of HVPE shares, being active on 44 of the 56 trading days in the period. Since we commenced share buybacks in September 2022, we have now bought back $120m of shares, adding 2.7% to NAV per share. While HVPE's shares continue to trade at a wide discount to NAV our priority in deploying the Distribution Pool will remain to buy back shares, which reflects our belief in the quality and value of the Company's underlying investments, and which will deliver NAV per share enhancement.

^{2              For the period from 1 August 2024 until 18 October 2024}

Balance sheet and portfolio cash flows

HVPE was a net investor during the six months under review, to the tune of $134m which, along with buyback activity, drove a $206 million increase in the Company's net debt level to $340 million. Despite the negative cashflow in the period, the Company continues to have access to ample liquid financial resources, with $140 million of cash and $720 million available to draw on the facility as at 31 July 2024. Calls on our cash from underlying funds totalled $270m against distributions received of $136m. In the comparable period last year, the Company's net investment was slightly larger at $157m. Key to a pick-up in distributions, and a reversal in overall cash flows, will be a recovery in both the IPO and M&A markets. As the Investment Manager makes clear in its review later in this report, there are early signs of a potential recovery and hence it is hopeful of stronger distributions through the remainder of this financial year and into next.

Mindful of the dampened levels of corporate activity across the globe, we chose to make no new commitments to HarbourVest funds during the half year, continuing the restraint we have exercised over the past couple of years. However, such decisions are finely nuanced as we must ensure that HVPE always has an appropriate spread of fund vintages so as not to miss out on attractive opportunities at low points in the investment cycle. To that end, in recent weeks we have committed $195m to HIPEP X, a HarbourVest international multi-strategy fund of funds. The fund will pursue a proven investment strategy and HVPE has invested successfully in a number of its predecessors.

As HVPE's net assets grow, it is important that its ability to borrow increases commensurately. This enables the Investment Manager to ensure that it can manage liquidity through the investment cycle and to avoid any drag on returns from having to hold significant portions of cash as an insurance policy for difficult times. To that end, we were pleased to secure an increased credit facility totalling $1.2bn during the half year, up from the previous $800m. The syndicate providing this facility included two new members, Ares Management Credit Funds and Apollo-managed funds, who join two existing lenders, and who both specialise in private credit markets, thus providing shareholders with additional reassurance as to the valuation of HVPE's portfolio.

Marketing and shareholder engagement

The merits of investing in HVPE's shares are clear to me and my fellow Directors, and we feel the long-term performance of the Company speaks for itself. That being said the Board and Investment Manager understand the imperative of promoting the Company, and as such have been very active in meeting existing and potential investors. All shareholders were invited to our annual Capital Markets Day in June and we were delighted to see so many of you there. I have met a number of investors and am always available to do so. The Board have, in addition, also committed to increase HVPE's annual marketing expenditure by 70%. All with the ambition of explaining the merits of investment in private markets generally, and HVPE in particular.

Company prospects and outlook

Although the much-anticipated recovery in investment confidence around the world is proving protracted, there are positive signs that investors are overcoming the uncertainties resulting from war, political turmoil and economic dislocations. HVPE's portfolio investments have proven remarkably resilient over the past few challenging years, which speaks to their quality. As described in the Investment Manager's report, liquidity events occurring shortly after the period end have added to the Distribution Pool, which stood at $56m as at 18 October 2024. These also provide additional evidence of the desirability of the underlying assets in the portfolio.

We view the future for HVPE with confidence and believe that the share price in no way reflects the performance by the Company over many years and the opportunities that we believe lie ahead. We are grateful to all shareholders who continue to share that confidence. You can rest assured that your interests will always be front and centre of our thinking.

Ed Warner

Chair

23 October 2024

Investment Manager's Review

Introduction

In this section, Richard Hickman, Managing Director, HVPE, who is responsible for the day-to-day management of the Company, reflects on the first six months of the financial year and shares his outlook. Richard joined HarbourVest in 2014 and has a total of 18 years' experience in the listed private equity sector.

Market developments in H1 2024

The improvement in the global macroeconomic climate which began in late 2023 continued during the first half of 2024, as inflation pressures eased, the US and other economies expanded, albeit modestly, and interest rates began to fall in key markets. This relatively favourable environment, combined with mounting excitement about artificial intelligence (AI), spurred strong gains in global equity markets, to the extent that the Nasdaq, the S&P 500, and other market indices are trading around all-time highs.   

As is typically the case in market upswings, private equity valuations have lagged the H1 2024 gains in public markets, although there are some early signs of recovery. Trade buyers are returning, and IPO and M&A activity is rising. For example, in Q1-Q3 2024, the Americas and EMEIA¹ regions recorded double digit year-over-year growth in IPO activity², as GPs took advantage of improved public market sentiment. Increasing confidence in private markets is also reflected in the fact that mainstream asset managers are investing in publicly listed private equity managers such as KKR and Carlyle, whose shares have made strong gains since late 2023. Despite this, listed private equity funds have lagged the strong gains of both public equity markets and listed private equity managers, even though the trading performance within portfolios has generally been strong.

^{1              EMEIA refers to Europe, the Middle East, India and Africa}

^{2              Source: EY US IPO Trends 2024 - Q3 report}

How did HVPE fare in this environment?

HVPE recorded a modest 3.0% growth in NAV per share over the six months ended 31 July 2024, while the FTSE All World Total Return index gained 12.6%. We appreciate that HVPE's recent NAV per share growth is below the long-run average, and below the returns posted by the majority of listed equity indices. However, we believe that this is a function of the short-term performance lag between public and private markets, rather than being an indication of the true long-term growth prospects of the portfolio.

Growth in NAV per share was driven by a 2.6% underlying valuation gain in the portfolio which was broadly spread across stage and strategy, with particular strength in the Buyout, Direct and European segments. Muted returns in the venture portion of the portfolio continued to drag down aggregate performance, following similar weakness in the last financial year.

For the six-month reporting period, capital calls for investments into HarbourVest funds exceeded distributions, resulting in the net portfolio cash flow figure being negative $134 million. This reflects a continued weak exit environment for underlying GPs who would rather hold on to their assets and continue to drive value growth than accept potentially sub-par offers on their assets in the near term. By the same rationale, it also reflects a strong investment environment as new deals can be done at more attractive valuations.

No new commitments were made during the period. We considered this to be the prudent approach considering the continued period of depressed realisation activity and resultant impact on the Company's balance sheet.

However, there are signs of realisations improving, and during the period there were 209 known M&A and IPO transactions in the portfolio which was a 37% increase compared to the six months to 31 July 2023.

How is H2 2024 shaping up?

Uncertainties remain relating to the forthcoming US presidential election, and geopolitical tensions will persist, but private markets participants tend to be entrepreneurial and innovative, so we are cautiously optimistic about the outlook for H2 2024 and beyond. As the global macroeconomic environment begins to improve, with inflation concerns subsiding and interest rates beginning to fall in most major economies, conditions become increasingly favourable for a more active phase of the private markets cycle. 

The pick-up in IPO and M&A activity in the first half of 2024 is an indication that market sentiment is improving, and the success of recent private equity and venture capital-backed IPOs such as Galderma, Renk, and Reddit, may encourage further public offerings. Elsewhere in the private markets, growth in infrastructure investment is accelerating, spurred in part by the adoption of power-hungry AI tools, which is driving demand for electricity generation, data storage centres and supporting infrastructure. 

These favourable prospects for private markets in general could suggest that there is scope for a re-rating of listed private equity funds, as this area of the market catches up with the broader sector and public markets (see chart below³ ).

HVPE is well-positioned to benefit from any upturn in private market activity, and has a strong long term track record of meeting its objective to materially outpace public market returns throughout the cycle. The positive outlook for the portfolio is supported by recent liquidity events occurring shortly after the period end. The most notable events are the sale of CrownRock L.P., the 2nd largest underlying asset as at 31 July 2024, and the signing of a secondary sale of predominantly tail-end positions from a number of HarbourVest funds in the portfolio. Meanwhile, the Company's wide discount suggests its shares currently offer long term investors latent value and continue to represent a great opportunity to access a diverse array of companies not listed on public markets.

^{3              Source: Refinitiv Workspace for the period May 2023 to August 2024}

Richard Hickman

Managing Director

Investment Manager's Report

NAV per share and portfolio performance - Six Months to 31 July 2024

The 3.0% increase in the Company's NAV per share during the six-month review period was primarily driven by a 2.6% increase in the underlying value of the portfolio. In percentage terms, the Direct portfolio was the best performing strategy, delivering value growth of 5.3% over the six months. Geographically, continuing a trend seen in the last financial year, Europe was the strongest performing region, delivering a +4.0% return. In terms of stage, the combined performance of Private Credit, Infrastructure & Real Assets was the strongest, growing 4.7% over the six months ended 31 July 2024. Venture and Growth Equity was the weakest performing segment, growing 1.1% over the period. More information on the drivers can be found on page 13.

HVPE remains well diversified by sector, strategy and stage, as demonstrated by the analysis on page 11. We believe that diversification in general is essential to achieving consistently strong returns from a private markets portfolio. Investing across a range of private market sub-asset-classes is beneficial as returns can vary substantially by vintage and at different points in the economic cycle.

Additionally, HVPE's portfolio is highly diversified by company. As at 31 July 2024, no single company represented more than 2.2% of the Investment Portfolio value (31 January 2024: 2.1%), helping to mitigate company-specific risk. The top 100 companies in the portfolio represented 28% of total value (31 January 2024: 28%), while the top 1,000 companies represented 79% (31 January 2024: 81%).

As at 31 July 2024, HVPE held investments in 63 HarbourVest funds and 16 Secondary Co-Investments⁴ (unchanged from 31 January 2024). Of these, the largest fund contributors to NAV per share movement in absolute terms during the six months to 31 July 2024 are described below:

·    Co-Investment V, a global Direct Co-investment fund, was the largest contributor over the reporting period, adding $0.20 to NAV per share. With a vintage year of 2018, this fund is in its growth phase. The increase came predominantly from realised gains.

·    Fund XI Buyout, a US-focused Buyout fund of funds, was the second largest contributor over the reporting period, increasing NAV per share by $0.17. With a vintage year of 2018, this fund is in its growth phase. The increase came predominantly from unrealised gains.

·    Asia Pacific V, an Asia Pacific-focused multi-strategy fund of funds, was the third largest contributor over the reporting period, adding $0.15 to NAV per share. With a vintage year of 2021, this fund is in its investment phase. The increase came predominantly from unrealised gains.

·    Co-Investment VI, a global Direct Co-Investment fund, was next, increasing NAV per share by $0.12. With a vintage year of 2021, this fund is in its investment phase. The increase came predominantly from unrealised gains.

·    Fund XII Buyout, a US-focused Buyout fund of funds, was next, increasing NAV per share by $0.10. With a vintage year of 2021, this fund is in its investment phase. The increase came predominantly from unrealised gains.

All the remaining HarbourVest funds in the portfolio combined contributed to an aggregate $0.86 increase to HVPE's NAV per share over the six-month period.

^{4              These include four Secondary Overflow III investments, 11 Secondary Overflow IV investments, and Conversus, referred to as "HVPE Charlotte Co-Investment L.P." in the Unaudited Condensed Interim Consolidated Schedule of Investments.}

^{5              Realised and unrealised gains are shown net of management fees, performance fees, and foreign currency in the Unaudited Condensed Interim Consolidated Statements of Operations.}

^{6              Realised gain/value changes from the balance of 58 other HarbourVest funds and 16 secondary co-investments in the Investment Portfolio.}

^{7              Management fees include management fees from HarbourVest Funds and Secondary Co-investments as shown in the Unaudited Condensed Interim Consolidated Statements of Operations ($56k).}

^{8              Please refer to page 20 for more information on the performance fees.}

^{9              Operating expenses exclude management fees ($56k) and are shown net of interest and other income ($2,755k).}

Portfolio Cash Flows

For the six-month reporting period, capital calls for investments into HarbourVest funds ($270 million) exceeded distributions ($136 million), resulting in the net portfolio cash flow figure being negative $134 million. The impact of the negative portfolio cash flow on the balance sheet and the resultant use of the credit facility is provided on page 18.

Distributions were driven in large part by activity in March 2024, during which cash proceeds of $51 million were received, mainly from the Primary funds. This contributed over a third of the total distributions over the period. Monthly distributions in the rest of the period ranged from $6 million to $37 million.

The largest HarbourVest fund capital calls and distributions over the reporting period are set out in the tables below. The top ten fund calls in aggregate accounted for $234 million (87%) of the total and came from a broad mix of HarbourVest funds. The majority of total calls by value (83%) were into primary opportunities. The top ten HarbourVest fund distributions totalled $79 million, or 58% of the total proceeds received in the period. Distributions by value were split mainly between primary investments (66%) and direct co-investments (26%), with the remainder coming from secondary investments (8%).

Top Five HarbourVest Fund Calls

Top Five HarbourVest Fund Distributions

M&A Transactions and IPOs

During the six months ended 31 July 2024, there were a total of 209 known M&A transactions and IPOs. This is a 37% increase compared to the six months to 31 July 2023 (153 M&A transactions).

Approximately 90% (188) of these transactions were M&A (trade sales or sponsor-to-sponsor) transactions, with the remaining 10% (21) being IPOs. It is important to note that IPOs tend to represent a relatively small proportion of exits for HVPE even in normal circumstances, consistent with wider industry trends.

Of HVPE's total 209 known M&A transactions and IPOs, 52% (109) related to buyout-backed companies and 48% (100) to venture-backed companies.

Over the six-month period, the weighted average uplift to pre-transaction carrying value for a large sample of transactions was 29%¹⁰.

The top five M&A transactions and IPOs during the period (by contribution to HVPE NAV per share) are listed below.

^{10            These figures represent the weighted average percentage uplift to carrying value of 56 individual company M&A and IPO transactions during the six months ended 31 July 2024. This analysis takes each company's value (whether realised or unrealised) at 31 July 2024 and compares it to the carrying value prior to announcement of the transaction. This analysis represents 86% of the total value of transactions in the six months ended 31 July 2024 and does not represent the portfolio as a whole. Additionally, it does not reflect management fees, carried interest, and other expenses of the HarbourVest funds or the underlying managers, which will reduce returns. Past performance is not necessarily indicative of future returns.}

^{11            As measured since the announcement of the transaction or IPO filing.}

Company Activity

New Fund Commitments

No new fund commitments were made in the six months ended 31 July 2024 (six months to 31 July 2023: $150 million commitments made). Total unfunded commitments were $2.2 billion as at 31 July 2024, representing a net decrease of $270 million from 31 January 2024 ($2.5 billion).

HVPE's Approach to ESG and DEI

Through its investments in HarbourVest funds, HVPE helps to support innovation and growth in the global economy. HVPE delegates the responsibility for ESG at the investment level to HarbourVest, but oversees this activity through regular engagement with the Investment Manager to stay fully abreast of its activities.

During the half year period, HVPE offset its operational carbon emissions resulting primarily from purchased electricity, waste, and business travel, simultaneously with HarbourVest's carbon reduction and offsetting programme. The programme compensates for emissions by delivering finance to emission reduction projects, which are independently verified by ClimeCo to assure emissions reductions are occurring. To offset its emissions, HVPE supported the New Bedford Landfill Methane Project operating local to HarbourVest's headquarters in Massachusetts, a landfill gas-to-energy plant which produces approximately 3.3 megawatt hours of clean electricity while reducing the amount of methane released into the atmosphere. This project recently received ICVCM¹² Core Carbon Principles certification.

HarbourVest continues to progress its ESG strategy and expects to publish an updated ESG report later in 2024. HVPE will report more detail on the developments in next year's Annual Report and Accounts which will be published in May 2025.

HarbourVest produces an annual Diversity and Inclusion Report, the latest version is available at https://www.harbourvest.com.

^{12            The Integrity Council for the Voluntary Carbon Market ("ICVCM") is a non-profit, independent governance body that aims to set and maintain a global standard for high integrity in the voluntary carbon market, unlocking private climate and carbon finance that would not otherwise be deployed.}

Diversification at 31 July 2024¹³

^{13            Diversification by stage, phase, strategy, currency, and geography is based on the estimated NAV of partnership investments within HVPE's fund of funds and company investments within HVPE's Co-investment funds. Industry diversification is based on the reported value of the underlying company investments for both fund of funds and Co-investment funds.}

Recent events

HVPE Estimated NAV as at 30 September 2024

HVPE releases an estimated NAV on a monthly basis. These reports are available on the Company's website, generally within 20 calendar days of the month-end.

On 23 October 2024, HVPE published an estimated NAV per share as at 30 September 2024 of $52.48 (£39.25), an increase of $0.50 (1.0%) from the final 31 July 2024 NAV (US Generally Accepted Accounting Principles ("GAAP")) figure of $51.98. This was mainly driven by valuation gains, favourable foreign exchange movements and share buybacks. This latest NAV per share is based on a valuation breakdown of: 10% as at 30 September 2024 (reflecting 5% public company holdings and 5% Direct Co-investments), 85% actual 30 June 2024 and 5% actual 31 March 2024. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cash flows, and any known material events to 30 September 2024.

The Investment Pipeline of unfunded commitments increased from $2.2 billion at 31 July 2024 to $2.4 billion at 30 September 2024, based on the new commitments, capital funded, and taking foreign exchange movements into account.

HVPE's cash and equivalents increased by $6 million from $140 million at 31 July 2024 to $146 million at 30 September 2024. As outlined in the August 2024 and September 2024 factsheets, this is a result of HVPE being a net cash recipient by $35 million across the two months, as well as the $13 million of share buybacks conducted, with the remainder of the cash movement being due to operating expenses charged during the two months. A recent sale of predominately tail-end positions made by the Investment Manager will contribute further cash realisations to HVPE in the-near term, boosting liquidity and the distribution pool to the benefit of shareholders.

HVPE's look-through exposure to borrowing at the HarbourVest fund level had increased by $16 million, from $484 million at 31 July 2024 to $500 million at 30 September 2024. The latest balance sheet ratios can be found in the factsheet on the HVPE website: www.hvpe.com.

Share Buybacks

HVPE has continued to buy back shares post period-end: 

·    In the period from 1 August 2024 to 18 October 2024, HVPE repurchased 592,826 shares for cancellation at an average price of £23.98 per share for a total consideration of £14.2 million ($18.5 million). This added $0.17 to NAV per share.

·    Inclusive of the post period-end buybacks, this means that in total, since the introduction of the new distribution policy on 1 February 2024, HVPE has repurchased 2,045,624 shares for cancellation at an average price of £24.09 per share for a total consideration of £49.3 million ($63.1 million). In total, this exercise added $0.56 to NAV per share.

·    As at 18 October 2024 the Distribution Pool balance was $55.5m and the total number of shares in issue was 75,637,884.

Share Price since 31 July 2024

HVPE's share price closed at £23.20 on 18 October 2024, which represents a 11% decrease compared with the £26.10 share price recorded on 31 July 2024.

KPIs and investment objective

The Company's investment objective is to generate superior shareholder returns through long-term capital appreciation by investing primarily in a diversified portfolio of private markets investments.

Key Performance Indicators ("KPIs")¹

Total Shareholder Return (six months, 12 months, and 10 years)

The key measure of HVPE's performance is the total return experienced by its shareholders. While NAV per share is the major driver over the long-term, the level of any premium or discount to NAV at which HVPE's shares trade is also relevant.

A significant majority of HVPE's shareholders are UK based, and most of the trading volume is in sterling.

^{1      Please note some of these KPIs are also APMs. Please see pages 62 to 65 for our APMs.}

NAV per Share Return (six months, 12 months, and 10 years)

HVPE seeks to achieve growth in NAV per share materially ahead of public markets over the long term, as defined by the FTSE All World Total Return ("FTSE AW TR") Index in US dollars. The FTSE AW TR is a global equity index with geographical weightings comparable to HVPE's portfolio. Please refer to the Alternative Performance Measures on pages 62 to 65 for details of performance calculations.

Balance Sheet Strength

The Board and the Investment Manager actively monitor HVPE's balance sheet by means of a set of key ratios, with a view to maintaining a robust financial position under all plausible forecast scenarios. Please see Managing the Balance Sheet on pages 18 to 19 for more details on the ratios and page 8 of the Investment Manager's report for more detail on the net portfolio cash flow.

Liquidity in the Shares (Daily Trading Volume)

Current and prospective shareholders place a high value on liquidity as it provides reassurance that there is a ready market in the shares should they wish to manage their position. The Board and the Investment Manager monitor liquidity on a regular basis using the daily mean.

Daily liquidity, measured by mean daily trading volume on the London Stock Exchange, improved significantly, increasing by 35.7% over the six months to 31 July 2024 from 108,438 to 147,096.

Managing the balance sheet

Effective and prudent balance sheet management is critical when running a closed-ended vehicle investing into a portfolio of private market funds with varying cash flow profiles. This is particularly true for a company such as HVPE which maintains a large pipeline of unfunded commitments (the "Investment Pipeline"), which is the amount of capital committed to an underlying HarbourVest fund, but not yet drawn down for investments.

An update on the Balance Sheet Strength KPIs can be found on page 17. This section aims to outline HVPE's approach to managing its balance sheet and explain the steps it takes to ensure that the Company is sufficiently resourced in preparation for periods of significant market stress.

The Importance of the Credit Facility

HVPE makes commitments to HarbourVest funds, which typically call capital over a period of several years. This long-duration cash flow profile necessitates a large pipeline of unfunded commitments in order to ensure that the Company remains approximately fully invested over time - this is known as an over-commitment strategy and is critical to optimising long-term NAV per share growth. In most years, the capital called from HVPE by the HarbourVest funds is taken from the cash distributions flowing from liquidity events within the portfolio. At times, however, capital calls will exceed distributions, potentially by a meaningful amount, and it may be necessary to draw additional amounts on the credit facility and maintain a net debt position to fund the difference. A subsequent year may see the reverse situation, with net positive cash flow used to repay surplus borrowing should the Company return to a net cash position. In this way, the credit facility acts as a working capital buffer and enables HVPE to manage its commitments to the level required in order to optimise returns through the cycle.

In June 2024, HVPE secured a new larger credit line to provide an enhanced level of support for its balance sheet, reflecting the strong growth in HVPE's net assets to $4.0bn. This restores the credit facility to a size equivalent to approximately 30% of NAV, comparable to 2015-2019 levels. This new $1.2 billion multi-currency credit facility (increased from $800 million), adds Ares Management Credit funds and Apollo-managed funds as new syndicate members to join two existing lenders, Mitsubishi UFJ Trust and Banking Corporation and The Guardians of New Zealand Superannuation, with the new syndicate demonstrating their confidence in HVPE's portfolio and business model.

In the six months to 31 July 2024, HVPE received cash distributions of $136 million while funding capital calls of $270 million for new investments. The result was net negative portfolio cash flow of $134 million over the reporting period. Additionally, there were non-portfolio net cash outflows of $71 million, primarily related to buybacks and operating expenses. Therefore, to ensure that HVPE had sufficient liquid resources to meet its near-term obligations, and to satisfy the requirement to draw a minimum of 40% of the new facility, HVPE initiated a further net draw of $205 million on its credit facility during the period. This leaves HVPE with $720 million remaining of its credit facility as at 31 July 2024, and 9% geared. The cash balance at 31 July 2024 was $140 million, which was in line with the $140 million as at 31 January 2024, resulting in a net debt position of $340 million.

HarbourVest Fund-level Borrowing

HarbourVest funds employ credit lines for two main purposes: bridging capital calls and distributions, and financing specific investment projects where the use of debt may be advantageous. The majority of this fund-level borrowing represents delayed capital calls, where a proportion of the unfunded commitments has been invested using subscription credit lines at the HarbourVest fund level, but the capital has not yet been called from HVPE.

HVPE has indirect exposure, on a look-through basis, to a pro rata share of borrowing carried on the balance sheets of some of the HarbourVest funds in which HVPE is a Limited Partner ("LP") (referred to as HarbourVest Partners ("HVP") fund-level borrowing). This borrowing does not represent an additional liability above and beyond the commitments that HVPE has made to the HarbourVest funds.

The HVPE team monitors the HarbourVest fund-level borrowing in absolute terms, and as a percentage of NAV. This borrowing is also considered when evaluating balance sheet ratios: the Total Commitment Ratio through the Investment Pipeline, and the Medium-Term Coverage Ratio through the three-year capital call projections. HarbourVest fund-level borrowing is also included when assessing the credit facility's loan-to-value ratios, as mentioned in Note 6 "Debt Facility" on page 42. Possible changes in this borrowing (and hence the timing of capital calls payable by HVPE) are also incorporated into the balance sheet scenario tests conducted as part of the annual commitment planning exercise.

As at 31 July 2024, HVPE's share of HVP fund-level borrowing on a look-through basis was $484 million, a net decrease of $24 million from the $508 million reported at 31 January 2024. Expressed as a percentage of NAV, this figure decreased from 13% to 12% over the period. This can be attributed to existing funds paying down their facilities as they became more mature, coupled with no new commitments to HarbourVest fund of funds being made in the period. This is because it is common practice to use working capital facilities at the outset of a fund's launch to cover initial cash outflows. These amounts are then repaid in the future with calls from LPs or using distributions received from investments. Post-period end, on 30 September 2024, the fund-level borrowing had increased by $14 million and stood at $500 million.

HVPE's period-end total exposure of $484 million includes $448 million (93%) of bridging finance (also known as subscription line finance) which is used to delay and smooth the pacing of capital calls to investors in the funds, including HVPE. Typically, these bridging facilities are committed by the lenders for a minimum of 12 months. The remaining $36 million (7%) is project debt, held in the most part by the HarbourVest secondary funds to finance specific projects. The bridging finance, should it be repaid in full or in part, will result in capital calls to investors in the HarbourVest funds, including HVPE, as this type of borrowing represents a portion of HVPE's existing unfunded commitment (Investment Pipeline) figure. Furthermore, during the period in which the debt is outstanding, there is a gearing effect on HVPE's NAV, as the investments have already been made while HVPE's share of the capital has not yet been called. Project finance has only a very limited impact on prospective cash flow but does contribute to the gearing effect.

In order to estimate the total potential gearing effect on NAV as at 31 July 2024, an investor should take the total fund-level borrowing figure of $484 million and factor in HVPE's net cash/debt position at the Company level (net debt $340 million). The resulting net total borrowing figure of $824 million would translate to an approximate level of look-through gearing of 21% at the period end. Further detail on the credit facility and the criteria upon which it can be drawn can be found under Note 6 "Debt Facility" on page 42.

Balance Sheet Ratios¹

The Board and the Investment Manager refer to three key ratios when assessing the Company's commitment levels:

The most recent published ratios, as at 30 September 2024, can be found within HVPE's latest monthly factsheet on its website: www.hvpe.com.

^{1      These are considered as Alternative Performance Measures. More detail can be found on pages 62 to 65}

^{2      The peer group refers to the UK listed private equity fund of funds: CT Private Equity Trust, ICG Enterprise Trust, Pantheon International Plc and Patria Private Equity Trust}

^{3      Estimated distributions and estimated investments taken from base case scenario. For further details on cash flows and modelling, please see page 24.}

Managing costs

Total Expense Ratio ("TER")

HVPE's TER reflects the total cost incurred by the Company in assembling and maintaining its portfolio of HarbourVest funds and Co-investments. The figure is broken down into four distinct categories of expense.

First, there is the direct cost of running the Company in its own right, encompassing items such as the maintenance of the credit facility, Board fees and expenses, professional fees, marketing, financial reporting, the services of a dedicated team from the Investment Manager, and compliance costs. These costs, totalling 0.57% of average NAV in the 6 months to 31 July 2024 (6 months to 31 July 2023: 0.29%), are categorised as recurring operating expenses as shown in the first line of the table below. The increase in operating expenses is due to the increase in size of the credit facility during the period as well as the amount utilised.

Secondly, operating costs relating to the HarbourVest funds amounted to a further 0.08% of average NAV in the six-month period (six months to 31 July 2023: 0.09%).

Third, HVPE pays management fees to HarbourVest with respect to the funds in which it invests, and also for the Secondary Co-investment in Conversus¹ made alongside the HarbourVest funds. The total of all management fees in the 6 months to 31 July 2024 was equivalent to 0.30% of average NAV (6 months to 31 July 2023: 0.29%).

Finally, performance fees are charged on Secondary investments and Direct Co-investments (not on Primary investments which make up 49% of HVPE's portfolio). In total, these accounted for 0.14% of average NAV in the 6 months to 31 July 2024 (6 months to 31 July 2023: 0.28%). The performance fee figure varies from period to period and is driven by the performance achieved by the relevant HarbourVest funds.

Together, these four cost components give a TER, net of interest income (0.07%), of 1.02% for the 6 months to 31 July 2024. It is important to note that, while the operating expenses and the management fees do not vary greatly from one year to the next, the performance fee figure will vary significantly depending on the returns delivered by the relevant underlying HarbourVest funds. The TER for the 6 months to 31 July 2024 of 1.02% was 0.20 percentage points higher than the same period in the prior year, predominantly owing to an increase in credit facility costs, partially offset by a reduction in performance fees. The calculation above excludes the fees charged by the underlying partnerships held by the HarbourVest funds. It is important to note that all performance data we report to shareholders is, and always has been, net of all fees and expenses.

^{1              "HVPE Charlotte Co-Investment L.P." in the Unaudited Condensed Interim Schedule of Investments.}

^{2              Operating expenses includes total expenses shown in the Unaudited Condensed Interim Consolidated Statements of Operations, excluding management fees from the Secondary Co-investments which are included in the management fees in this table.}

^{3              HVPE's share of fund-level operating expenses (professional fees and organisational costs) which are included in realised and unrealised gains (losses) on investments in the Unaudited Condensed Interim Consolidated Statements of Operations.}

^{4              This includes fund-level management fees payable to HarbourVest which are included in realised and unrealised gains (losses) on investments in the Unaudited Condensed Interim Consolidated Statements of Operations, together with the management fees relating to secondary co-investments noted in 2 above.}

^{5              This is shown as interest from cash and equivalents on the face of the Unaudited Condensed Interim Consolidated Statement of Operations.}

^{6              This includes fund-level performance fees payable to HarbourVest which are included in realised and unrealised gains (losses) on investments in the Unaudited Condensed Interim Consolidated Statements of Operations.}

^{7              TERs are calculated using the average NAV over the respective periods ($4.0 billion in the six months ended 31 July 2024; $3.9 billion in the 12 months ended 31 January 2024; and $3.9 billion in the six months ended 31 July 2023).}

Principal risks and uncertainties

Risk Factors and Internal Controls

The Board is responsible for the Company's risk management and internal control systems, and actively monitors the risks faced by the Company, taking steps to mitigate and minimise these where possible. Further details on the Board's governance and oversight can be found on pages 77 to 79 of the 2024 Annual Report and Accounts.

Risk Appetite

The Board's investment risk appetite is to follow an overcommitment policy that optimises investment returns and associated distributions, allows balanced, regular investment through economic and investment cycles, and ensures that it has access to sufficient funding for any potential negative cash flow situations, including under an Extreme Downside scenario. At the same time, the funding available to the Company by way of cash balances and lending facilities is managed to ensure that its cost, by way of interest, facility fees or cash drag, is reasonable. When considering other risks, the Board's risk appetite is to balance the potential impact and likelihood of each risk with its ability and desire to control and mitigate the risk to an acceptable level. In doing so, as a baseline, the Board will seek to follow best practice and remain compliant with all applicable laws, rules, and regulations.

Risk Management

The Directors have adopted a risk management framework which governs how the Board identifies and measures risks, determines risk appetite, assesses mitigation and controls, and reports on risks. The Board reviews risks at least twice a year and receives in depth reports on specific risks as recommended by the Audit and Risk Committee. The Board divides identified risks into those which have a higher probability and a significant potential impact and those which are less material and are monitored on a watch list. The Board also conducts an annual exercise to identify new or emerging risks. In considering material risks, the Board identifies those which should be categorised as principal risks, which are those where the combination of probability and impact is assessed as being most significant and which the Board therefore considers could seriously affect the performance, future prospects, or reputation of the Company.

Risk Commentary

Despite the growth in public equity market indices through the period under review, and subsequent to the period end, the macroeconomic and geopolitical outlook remains uncertain with the speed of expected interest rate cuts being unknown, and the result of the forthcoming US Presidential election too close to call. Against this backdrop of uncertainty, the share price performance of listed closed-ended private equity funds has been muted in comparison with broader public equity markets. This has resulted in the share price discounts to NAV per share of listed closed-ended private equity funds, including HVPE, remaining stubbornly wide. The Board's initiative in creating the Distribution Pool to fund capital returns to shareholders appears to have had a positive effect. In this environment, the risks relating to public markets, valuation and popularity of the listed private equity sector remain heightened. The renewal and increase in the Company's credit facility in June 2024 has decreased balance sheet risk and ensures the Company's liquidity in even the most negative modelled scenarios. The Company's Principal Risks remain as follows:

INTERIM FINANCIAL STATEMENTS

Independent Review Report

to HarbourVest Global Private Equity Limited

Conclusion

We have been engaged by HarbourVest Global Private Equity Limited (the "Company") and its subsidiaries (together the "Group") to review the Condensed Interim Consolidated Financial Statements in the Semi-Annual Report and Accounts for the six months ended 31 July 2024 which comprises Condensed Interim Consolidated Statement of Assets and Liabilities, Condensed Interim Consolidated Statement of Operations, Condensed Interim Consolidated Statement of Changes in Net Assets, Condensed Interim Consolidated Statement of Cash Flows, Condensed Interim Consolidated Schedule of Investments and the related Notes 1 to 11. We have read the other information contained in the Semi-Annual Report and Accounts and considered whether it contains any apparent misstatements or material inconsistencies with the information in the Condensed Interim Consolidated Financial Statements.

Based on our review, nothing has come to our attention that causes us to believe that the Condensed Interim Consolidated Financial Statements in the Semi-Annual Report and Accounts for the six months ended 31 July 2024 are not prepared, in all material respects, in accordance with the accounting principles generally accepted in the United States of America ("US GAAP") and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE) issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in Note 2, the annual Consolidated Financial Statements of the group are prepared in accordance with US GAAP. The Condensed Interim Consolidated Financial Statements included in this Semi-Annual Report and Accounts have been prepared in accordance with US GAAP.

Conclusions Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern.

Responsibilities of the Directors

The Directors are responsible for preparing the Semi-Annual Report and Accounts in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

In preparing the Semi-Annual Report and Accounts, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the review of the financial information

In reviewing the Semi-Annual Report and Accounts, we are responsible for expressing to the Company a conclusion on the Condensed Interim Consolidated Financial Statements in the Semi-Annual Report and Accounts. Our conclusion, including our Conclusions relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

Use of our report

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Ernst & Young LLP

Guernsey, Channel Islands

23 October 2024

Unaudited Condensed Interim Consolidated Statements of Assets and Liabilities

At 31 July and 31 January 2024

* Except net asset value per share

The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements.

The Unaudited Condensed Interim Consolidated Financial Statements on pages 28 to 44 were approved by the Board on 23 October 2024 and were signed on its behalf by:

Ed Warner                                           Steven Wilderspin

Chair                                                   Chair of the Audit and Risk Committee

Unaudited Condensed Interim Consolidated Statements of Operations

For the Six-month Periods Ended 31 July 2024 and 2023

The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements.

Unaudited Condensed Interim Consolidated Statements of Changes in Net Assets

For the six-month period ended 31 July 2024 and 2023

The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements.

Unaudited Condensed Interim Consolidated Statements of Cash Flows

For the six-month period ended 31 July 2024 and 2023

The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements.

Unaudited Condensed Interim Consolidated Schedule of Investments

At 31 JULY 2024

*      Includes purchase of limited partner interests for shares and cash at the time of HVPE's IPO.

†      Includes ownership interests in HarbourVest Partners VII-Cayman Partnership entities.

**     Fund denominated in euros. Commitment amount is €100,000,000.

††   Fund denominated in euros. Commitment amount is €63,000,000.

‡‡   Fund denominated in Canadian dollars. Commitment amount is C$32,000,000.

As of 31 July 2024, the cost basis of partnership investments is $2,897,520,000.

Totals and subtotals may not recalculate due to rounding.

The accompanying notes are an integral part of the Unaudited Condensed Interim Consolidated Financial Statements.

At 31 january 2024 (audited)