HarbourVest Global Private Equity : Annual Report and Accounts for the 12 Months to 31 January 2024

One share. A world of private company opportunities.

Annual Report and Accounts

12 Months to 31 January 2024

Purpose

HVPE exists to create value for our shareholders by providing easy access to a diversified global portfolio of high-quality private equity investments, managed

by HarbourVest Partners.

This report will refer to the Investment Manager as "HarbourVest Partners" or "HarbourVest". The Investment Manager of HarbourVest Global Private Equity Limited ("HVPE" or "the Company") is HarbourVest Advisers L.P. which is an affiliate of HarbourVest Partners, LLC.

Where to find us:

www.hvpe.com

Strategic Report

Governance

Financial Statements

Other Information

1

Strategic Report

1. Our year in numbers

1. Chair's statement

1. At a glance

Investment Manager's Review

12 Introduction

1. HVPE Investment Committee

1. Investment Manager's report

1. Value creation cycle
2. Commitment phase
3. Investment phase
4. Growth phase
5. Mature phase
6. Recent events

1. KPIs and investment objective

1. Managing the balance sheet

1. Managing costs

1. Stakeholder engagement

1. Principal risks and uncertainties

1. Purposeful growth
   (Environmental, Social, and Governance)

1. Manager spotlight

1. Top ten direct companies

Governance

1. Board of Directors

1. Directors' report

1. Board structure and committees

1. Audit and Risk Committee

1. Nomination Committee and Management Engagement and Service Provider Committee
2. Remuneration Committee and Inside Information Committee
3. Directors' remuneration report
4. Statement of Compliance with the AIC Code of Corporate Governance

Financial Statements

86 Independent Auditor's Report

1. Consolidated Statements of Assets and Liabilities
2. Consolidated Statements of Operations
3. Consolidated Statements of Changes in Net Assets
4. Consolidated Statements of Cash Flows
5. Consolidated Schedule of Investments

1. Notes to Consolidated Financial Statements

Other Information

1. Supplementary data

1. Glossary

1. Alternative Performance Measures

1. Disclosures

1. Key information

2	HVPE Annual Report and Accounts 2024

Our year in numbers

NAV resilience amidst a challenging macroeconomic backdrop.

12 months to, or at, 31 January 2024 unless otherwise stated. Net Asset Value ("NAV") per Share ($)

$50.47

31 January 2023: $48.52

Share Price (£)

£23.15

31 January 2023: £22.10

Net Assets ($)

$3.9bn

31 January 2023: $3.8bn

Total New Commitments ($)

$295m

12 months to 31 January 2023: $940m

NAV per Share Return ($)

+4.0%

12 months to 31 January 2023: -1.2%

Share Price Return (£)

+4.8%

12 months to 31 January 2023: -20%

Share Price Discount to Net Assets (£)1

-42%

31 January 2023: -44%

Net Portfolio Cash Flow ($)2

$(283m)

12 months to 31 January 2023: $(56m)

APM

APM

APM

APM

1. The discount is calculated based on the NAV per share available to the market at the financial year end, that being the 31 December estimate, converted to sterling at the prevailing GBP/USD foreign exchange ("FX") rate, compared with the share prices on 31 January 2024 and 2023. Please refer to the Alternative Performance Measures ("APMs") on pages 126 to 128 for calculations.
2. Cash distributions from private equity investments ($310 million) minus cash contributions to private equity investments ($593 million). Please refer to the Consolidated Statements of Cash Flows on page 96.

APM Metrics with this APM icon denote our Alternative Performance Measures ("APMs"). For more information on APMs, please turn to pages 126 to 128.

Strategic Report

Governance

Financial Statements

Other Information

3

NAV per Share Performance vs. Share Price (USD)

+300%	Key	NAV per share ($)
		Share price ($, converted)*
+250%		FTSE AW TR ($)							+251%
+200%
										+171%
+150%										+138%
+100%
+50%
0%Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan
2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024

HVPE introduced an additional US dollar share price on 10 December 2018; from this date onwards, the actual US dollar share price, as reported by the London Stock Exchange, has been used. Prior to this date, the US dollar share price had been converted from the sterling share price at the prevailing exchange rate.

4	HVPE Annual Report and Accounts 2024

Chair's statement

Strategic Report

Governance

Financial Statements

Other Information

5

Dear Shareholder

There was little respite for investors during much of 2023, as central banks continued to raise interest rates through the first half of the year to quash inflationary pressures. This aggressive monetary tightening made market participants fearful of a global recession and cautious about committing to new investments, including in private markets. Despite these challenges, our diversified portfolio showed resilience and delivered growth. By early 2024, the mood had started to brighten as inflation slowed and investors began to anticipate rate cuts. In both private and public markets, there were early signs of increased M&A and IPO activity and some optimism about a better year ahead.

Resilient financial performance

Against this backdrop, HVPE's net asset value (NAV) per share rose 4.0% to $50.47 over the year to 31 January 2024. This compares with a 15.3% rise in the FTSE All-World Total Return Index, led by a surge in US share prices as market sentiment improved in late 2023. HVPE's relative underperformance is not surprising, and is consistent with private equity investments being inherently less volatile than listed markets, tending to outperform during public market downturns and lagging as markets start to recover.

Importantly, the Company's long-term performance remains strong and is the basis of the Board's belief in our strategy. HVPE has realised its investment objective to deliver material outperformance of the public markets throughout the cycle. In the ten years to 31 January 2024, HVPE delivered growth in NAV per share of 251%, while the FTSE All-World Total Return Index returned 138% (all USD).

However, the full benefit of this outperformance is not reflected in the Company's share price, which has traded at a significant discount to NAV for an extended period. HVPE's share price rose 4.8% in the year to 31 January 2024, and was trading at a discount of 42% (slightly below the 44% discount at the end of the previous year).

I appreciate it is cold comfort to HVPE shareholders that most investment companies, regardless of their asset class or investment strategy, have seen very wide discounts over the past year. High interest rates have increased the appeal of lower-risk cash and bond investments, and global investors seeking capital growth have tended to look to the US in preference to UK-listed equities. Additional unfavourable influences have ensured that listed private equity companies have seen discounts wider than most. Technical factors such as persistent selling by UK-focused index tracker funds, affect HVPE and some of its immediate peers, due to their inclusion in the FTSE 250 and FTSE All-Share indices. There has also been a degree of scepticism over reported NAVs for alternative asset classes such as private equity in this higher interest rate environment.

As a Board, we remain resolute in our conviction that HVPE's published NAV figure is robust, being the result of rigorous valuation processes at each level in its structure, and reflects the economic value of the Company's underlying investments. Further reassurance regarding HVPE's NAV is provided by the fact that, on average, our investments have continued to be exited at a premium to carrying value.

My fellow Directors and I share investors' frustration with HVPE's discount. We are all shareholders ourselves in HVPE and believe the discount is unjustified given HVPE's meticulous valuation process and the quality of the funds and companies in which it is invested.

New distribution policy

In response to this situation, over the past year we

have engaged with a large number of investors and other stakeholders, to explore how shareholders can participate more directly in HVPE's NAV growth through the cycle, while also supporting the share price and potentially reducing the discount.

As a result of these discussions, the Board recently announced a new policy, effective from 1 February 2024, which saw the establishment of a Distribution Pool. This Pool is being funded by a proportion of the cash realisations from the Company's portfolio going forward, with this proportion set initially at 15%. This effectively ring-fences capital to be deployed for share buybacks or special dividends, while taking into consideration the importance of maintaining balance sheet strength and liquidity. Several factors are weighed when determining shareholder distributions, including the macroeconomic environment, the discount, market sentiment, and any alternative opportunities. At the current wide discount,

the policy favours share buybacks and we have been active in this regard in the new financial year.

Full details of this policy are outlined on page 71.

6

Chair's statement continued

Buybacks

In the current unusual market conditions, repurchasing shares represents an attractive and prudent investment, and makes sense from a capital allocation perspective. In accordance with our established framework for assessing buybacks, in May 2023, the Board announced our intention to buy back $25 million of shares, with a further allocation to share repurchases being announced in the Semi-Annual Report. In total, during the 12 months ended 31 January 2024, our brokers bought back 1,421,114 shares for cancellation at an average price

of £21.70 per share for a total value of £30.8 million ($38.5 million). This added $0.42 to NAV per share over the year.

Since the year-end, HVPE has continued buying back shares with a further 714,154 shares repurchased for cancellation at an average price of £23.67 per share for a total consideration of £16.9 million ($21.5 million).

Since first buying back shares in September 2022, the Company has therefore repurchased a total of 2,893,132 shares for consideration of £64.7 million ($78.7 million). This is the equivalent of 3.6% of HVPE's market capitalisation as at 30 April 2024.

As mentioned above, in February HVPE announced the introduction of a Distribution Pool, to be funded by 15% of cash realisations from the portfolio. This is an evergreen capital allocation policy, designed to be sustainable through the cycle, and is not impacted by deductions such as capital calls, debt repayments or fund expenses. Investors are able to track the growth of the Distribution Pool on a monthly basis, while the Investment Manager determines forward commitments based on the remaining 85% of cash distributions.

During this first year of its operation, the Distribution Pool is being additionally funded by a seed amount, currently expected to total $75 million. This was reallocated from a postponed commitment to a HarbourVest fund and is being contributed in three equal tranches through the year. As of the date of this report, the balance in the Distribution Pool is $52 million, which the Board is pleased to confirm will be used for further share buybacks.

Looking ahead, based on the detailed modelling carried out

by the Investment Manager, we expect that the total amount of cash allocated to the Distribution Pool across the two calendar years 2024 and 2025 will be between $150 million and $250 million, inclusive of the existing balance. We believe that

this will make a material difference to shareholders' returns, helping to ensure that they benefit more directly from the strong value growth delivered by HVPE's high quality portfolio.

The potential impact of the Distribution Pool on the share price discount is difficult to gauge, but the Board expects that its ongoing operation will have a supportive effect on total shareholder returns over the long term.

HVPE Annual Report and Accounts 2024

Balance sheet, portfolio cash flows and commitments

Over the financial year, HVPE was a net investor by $283 million. The portfolio reflected the trends seen across the industry of resilient dealmaking combined with slower exit activity. While these investments lay the groundwork for continued strong portfolio performance over the long-term, they do place a demand on HVPE's cash reserves in the short-term. As at 31 January 2024, HVPE had net debt of $135 million. This was a change from the prior year position when HVPE had net cash of $198 million. The facility is currently drawn $365 million and HVPE has a cash balance of $84 million giving a net debt position of $281 million. The Board is conscious of the need to ensure that the credit facility is always of a size and duration appropriate to HVPE's needs. The Board intends to refresh the credit facility and is currently well advanced in this process.

Over the course of 2023, total commitments were reduced considerably from the original plan, ending the year at $295 million, in response to the low level of portfolio exit activity during the year. In November 2023, the Investment Manager presented a plan for 2024 which was subsequently approved by the Board. This plan was informed by the Investment Manager's extensive scenario planning, resulting in the recommendation of a prudent level of new commitments with a view to enhancing near-term cash flow. New commitments will continue to be sized to preserve balance sheet strength and liquidity which remains an important focus for the Board.

Focus on Environment, Social and

Governance (ESG)

The Board is committed to the highest standards of corporate governance and to improving the social and environmental impact of HVPE's activities, in collaboration with HarbourVest Partners. The Manager presents frequent updates to the Board on how ESG factors are considered in its investment process, its screening methods, and its reporting. This includes a steady increase in the scope and nature of the information that it can provide on HVPE's own portfolio. In addition, ESG risk has been integrated into the Board's assessment of all the material risks faced by the Company to ensure that it is embedded as a part of HVPE's overall strategy. The Board initiated a project to calculate its own carbon footprint in 2021 and since that time, has continued to offset its operational carbon emissions, the majority of which result from travel. Full details of the Investment Manager's approach to ESG matters can be found on pages 68 to 69.

Board and Investment Management Committee

In response to shareholder feedback, on 1 February 2024, HVPE announced two refinements to its corporate governance and investment decision-making structures. With effect from the July 2024 Annual General Meeting (AGM), HVPE's Board will become fully independent of the Investment Manager when HarbourVest Managing Director Carolina Espinal steps down as a Director. On behalf of the Board, I would like to thank Carolina for her valuable contribution to the work of the Board over the past five years.

Strategic Report

Governance

Financial Statements

Other Information

7

Carolina will remain involved with the investment decisions made on behalf of the Company as both she and Richard Hickman joined HVPE's Investment Committee with effect from 1 February 2024. In the Board's view, Carolina's and Richard's close knowledge of the Company and their private market expertise will strengthen HVPE's investment process, enhancing its ability to deliver the best possible outcome for shareholders over the long term.

Given the persistence of a wide discount, and conscious of the impact this has on shareholders' returns, the Board has decided that there should be no increase in the fees paid to Directors for the year ending 31 January 2025.

Marketing and shareholder engagement

The Board is committed to regular and effective engagement with its stakeholders, to improve understanding of the Company's strategy and provide updates on investment activity. As one key element of this process, as in previous years, HVPE will hold a Capital Markets session for shareholders on 6 June 2024, at Peel Hunt's offices in London. This event will be a well-timed opportunity for shareholders to receive an update on HVPE's results for the year to 31 January 2024, ask any questions they may have and hear views on global markets and industry trends from both HarbourVest Partners and external speakers. My fellow Directors and

I look forward to welcoming as many shareholders as possible in person to this event and we encourage you to register. Shareholders who are interested in attending should contact the team at [e-mail].

The Company's AGM with be held in Guernsey at 1.00PM BST on 17 July 2024. Formal notice will be sent to registered shareholders shortly and we encourage all registered shareholders to exercise their votes by proxy.

The Board also undertakes a series of other activities and events which are outlined on pages 36 to 38. In addition, my fellow Directors and I always welcome the opportunity to engage with shareholders and answer any questions. We can be reached via [e-mail].

Company prospects and outlook

In our view, the investment case for HVPE remains compelling. The Company has outperformed public equity markets over the past ten years, and we are optimistic that this will continue in the long term. HarbourVest is a high quality manager investing with leading private equity managers, giving it access to a wealth of talent and high quality opportunities from around the world. HVPE's track record attests to the resilience of its investment strategy during challenging periods and, in our view, its diversified portfolio is well-positioned to continue to deliver strong returns and outperformance in the years ahead.

HVPE's near term prospects also appear favourable, as we share the Manager's view that private equity markets will improve this year. IPOs and M&A transactions are both rising, as demonstrated in our recent NAV updates, and there are widespread expectations that activity will gain further momentum as the year progresses. The recovery in public markets is alleviating concerns about valuations, which should help drive exit volumes. Modest declines in interest rates should provide a further boost to the sector, as will any improvement in exit premiums.

This may take time to play out, but we are confident HVPE is heading in the right direction. The progress we have made over the year, including actions we have taken to optimise shareholder returns, will position us well for the future. We are grateful to those patient shareholders who have remained invested for the long-term, and to those who have joined the share register more recently. We thank you for your support and look forward to reporting back to you on HVPE's further progress.

Ed Warner

Chair

29 May 2024

8	HVPE Annual Report and Accounts 2024

At a glance

HVPE invests exclusively in funds managed by HarbourVest Partners, an independent global private markets asset manager with over 40 years' experience.

HarbourVest Partners by the numbers1

40+	$125bn+	230+
Years of market experience	Assets under management	Investment professionals
25+	900+	1,100+
Average years of industry experience of MDs	Advisory board seats	Employees globally
13
Global offices