HarbourVest Global Private Equity Limited : Ann...

31 May 2013

HARBOURVEST GLOBAL PRIVATE EQUITY REPORTS 9% YEAR ON YEAR NAV INCREASE

§  Net asset value per share is $12.46, up from $11.42 at January 2012
§  December 2012 purchase of the assets of Conversus demonstrates HVPE's access to unique secondary deals
§  37% uplift on carrying value at realisation for largest exits
§  HVPE's share price increased 36% during financial year ended 31 January 2013
§  Company announces strategic initiatives that include expected distributions of up to $40 million of cash to shareholders over next two years, subject to certain financial criteria

HarbourVest Global Private Equity Limited ("HVPE" or the "Company"), a closed-end investment company listed on Euronext Amsterdam and the Specialist Fund Market of the London Stock Exchange, today announces its audited results for the financial year ended 31 January 2013.

Net Asset Value

At 31 January 2013, HVPE's Net Asset Value ("NAV") was $1,030 million, or $12.46 per share, a 9% increase from 31 January 2012 ($11.42).  Realised gains were driven by ongoing liquidity events within the underlying portfolio and valuation increases within an improving NAV environment, despite volatile public markets and Eurozone concerns.  These increases were partially offset by management and performance fees and ongoing operating expenses.

Cash Flows

HVPE experienced 11 months of positive cash flows from its portfolio during the year.  The Company invested $105 million in HarbourVest funds and $94 million in the assets of Conversus.  HVPE received $203 million of realisations from HarbourVest funds and Absolute Private Equity, leading to net positive cash flows of $4 million during the financial year.  The current level of gearing (net debt / NAV) on the $500 million credit facility is 15%, down from 16% at 31 January 2012.

Purchase of Conversus Assets

On 31 December 2012, HVPE completed its purchase of the assets of Conversus
alongside HarbourVest-managed funds. HVPE took a direct stake of $94 million and
also has an indirect interest of $12 million through existing commitments to
HarbourVest-managed funds. This transaction demonstrates the Investment Manager's
ability to access and execute complex transactions for the benefit of the Company's
shareholders. HVPE's purchase generated a $20 million gain for its portfolio during the financial year.

Conversus was a listed private equity fund and the largest publicly-traded portfolio of
third party private equity funds globally, with a mature, broadly diversified portfolio of
over 200 private equity fund interests. The underlying portfolio is diversified by vintage,
geography, and industry and complements HVPE's diversified portfolio.  The Company's investment is held through an acquisition vehicle and was financed through the use of HVPE's existing $500 million credit facility.  Following the transaction, HVPE is one of the largest publicly-traded multi-manager funds.  HVPE's strong balance sheet enables it to participate in opportunistic situations at a low cost of financing.

Strategic Initiatives

Since HVPE completed its IPO in December 2007, financial markets have experienced significant challenges. The Board recently undertook a strategic review and is pleased to announce the following initiatives:

• Target $40 million cash to shareholders - The Board anticipates distributing up to $40 million, or $0.48 per share in cash over the next two years based on the expected profits from the recent co-investments in Absolute Private Equity and Conversus (subject to a shareholder vote and certain financial criteria). The first distribution is expected to be made in the fourth quarter of 2013.
• Listing and governance structure - As part of its objective to be as transparent and accessible as possible, the Board of Directors has also instructed HVPE's advisers to explore the most appropriate listing and governance structure for the Company.
• Gearing and commitments - During the strategic review, the Board also reaffirmed the Company's over-commitment policy and willingness, where appropriate, to use leverage to finance transactions that can be NAV accretive. Although the Board does not believe the Company will employ permanent leverage, it will continue to manage the balance sheet as efficiently as possible while not being more than 20% geared in normal market circumstances.

Stuart Howard, COO of European Listed Products at HarbourVest, commented:

"The last eighteen months have been an exciting period for HVPE.  NAV continues to grow, up 9% during the last financial year, and the share price has performed strongly, increasing to $9.55 through late May 2013. With an extended credit facility, a highly diversified portfolio, and access to unique deals alongside HarbourVest funds along with the initiatives announced by the Board concerning the anticipated share of profits, the review of the listing and governance structure, and the policy on gearing and commitments, I believe HVPE is in excellent shape to continue to deliver attractive returns to shareholders over the coming twelve months". 

Portfolio highlights at or during the financial year ended 31 January 2013 include:

Investment Activity

• $105 million invested in HarbourVest funds
• $94 million invested in the purchase of the assets of Conversus, demonstrating HVPE's access to unique deals through HarbourVest's experience leading complex and innovative transactions
• $110 million committed to newly-formed HarbourVest secondary and direct funds

Realisation Activity and Liquidity Events

• 403 liquidity events (M&A events and IPOs) within the portfolio, driven by venture-backed investments
• Weighted average uplift of 37% of carrying value at realisation for largest M&A events
• $203 million of realisations received from HarbourVest funds and Absolute
• Realisations included proceeds from the May 2012 IPO of Facebook (FB) (largest underlying company at 31 January 2012) and the sale of Fougera (U.S. dermatology business of Nycomed not included in September 2011 sale to Takeda) to Sandoz (Novartis)

Highly Diversified and Mature Portfolio

• 23 vintage years dating back to 1986 (79% pre-2008)
• Strategy - 30% venture, 64% buyout, 6% other
• Geography - 68% U.S., 23% Europe, 9% Asia Pacific and Rest of World
• Top 50 companies represent 21% of investment portfolio

Strong Balance Sheet

• Continued focus on maintaining adequate resources to finance future obligations
• $500 million credit facility committed through December 2014 ($162 million outstanding at 31 January 2013)
• Credit facility extended in April 2013; will remain at $500 million until December 2014 and reduce to $300 million thereafter
• $460 million investment pipeline
• $344 million liquid resources

HVPE's Annual Report and Audited Consolidated Financial Statements provide further detail on:
§  The results for the financial year ended 31 January 2013
§  The Investment Manager's market review and outlook
§  Investment and commitment activity
§  Portfolio performance and review
§  Realisation activity and liquidity events
§  Cash flows
§  Balance sheet management and commitment ratios
§  Recent events

The Company's Annual Report and Audited Consolidated Financial Statements can be found on HVPE's website, in the Annual Report - Year Ending 31 January 2013. 

Enquiries:

HarbourVest
Stuart Howard	Mobile: [phone]		[e-mail]
Laura Thaxter	Tel: [phone]		[e-mail]
Fishburn Hedges
Paul Farrow / Alastair Fairbrother / Ben Lyons	Tel: [phone]		[e-mail]

Notes to Editors:

About HarbourVest Global Private Equity Limited:
HarbourVest Global Private Equity Limited ("HVPE") is a Guernsey-incorporated closed-end investment company which has a dual listing on both the London Stock Exchange and Euronext Amsterdam.  HVPE is registered as an investment institution with the Netherlands Authority for the Financial Markets.  HVPE is designed to offer shareholders long-term capital appreciation by investing in a private equity portfolio diversified by geography, by stage of investment, by vintage year, and by industry.  It invests in and alongside HarbourVest-managed funds which focus on primary partnership commitments, secondary investments, and direct investments in operating companies.  HVPE is advised by HarbourVest Advisers L.P., an affiliate of HarbourVest Partners, LLC. 

About HarbourVest Partners, LLC:
HarbourVest is an independent global private equity investment firm and an SEC registered investment advisor, providing vehicles for institutional investors to invest in the venture capital and buyout markets in the U.S., Europe, and elsewhere through primary partnerships, secondary purchases, and direct investments. The HarbourVest
team began investing in 1982 and has committed more than $30 billion to investments over its more than 30-year history. Across its global investment platform, HarbourVest and its affiliates have more than 230 employees in Boston, London, Hong Kong, Tokyo, Bogotá, and Beijing.

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.

HarbourVest Global Private Equity Limited is registered with the Netherlands Authority for the Financial Markets as a collective investment scheme which may offer participations in The Netherlands pursuant to article 2:66 of the Financial Markets Supervision Act (Wet op het financieel toezicht). 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, which is registered with the Netherlands Authority for the Financial Markets and whose registered address is at Anson Place, Mill Court, La Charroterie, St Peter Port, Guernsey GY1 1EJ.

© 2012 HarbourVest Global Private Equity Limited. All rights reserved.

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Source: HarbourVest Global Private Equity Limited via Thomson Reuters ONE

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