28th November 2017 HVPE reveals Global Investment "Megatrends" for next 10 years
  • Key future global "megatrends" in private markets:

  • A technological leap-forward
  • Demographic shifts
  • The global role of China
  • HVPE celebrates its 10th anniversary with an in-depth survey amongst 30 HarbourVest Managing Directors to highlight key investment opportunities in private markets.

    HarbourVest Global Private Equity Limited ("HVPE"), a closed-end investment company, today presents its 10:10 Global Investment "Megatrends" survey, which shares insights on the big trends in private markets over the next 10 years and explains how the company is accessing these for investors.

    The 10:10 survey celebrates HVPE's doubling of NAV per share and outperformance of both its peer group and the FTSE All-World since inception 10 years ago, and highlights the investment opportunities offered via its unique access to HarbourVest funds and diversified portfolio of private companies, across geographies, sectors and investment stage.

    Next 10 years - "Megatrends" to watch:

  • A technological leap-forward that will revolutionise the home, workplace and healthcare.
    • Artificial Intelligence (AI) and robotics (particularly analytics)

    • The internet of things 2.0 where smart devices will enter everyday businesses

    • Environmental tech, self-driving, electric cars and ride-sharing

    • Continued penetration of mobile everything

    • Focus on companies using disruptive technology to grow and those regulating the internet, making it safer

    • Digital medicine, using big data and gene therapy enhancements

    • Adoption of technology/innovation by established businesses to reposition companies/create a competitive edge

    1. Demographic shifts
      • Ageing population in developed markets driving new investment opportunities in healthcare that can be scaled with technology

      • Healthcare (particularly in the US) becoming consumed rather than delivered - more patient choice

      • Ageing and slower population growth will subdue economic growth in many parts of the world, driving a focus on sectors which are growing faster than GDP i.e. non- cyclical: software, healthcare technology and services, business services creating efficiencies

      • Youth, globally, spending and not saving

      • Favourable demographics in Asia will translate into investment opportunities; global growth engine due to increasing wealth of the population

    2. The global role of China
      • China's increasing influence across the globe and in private markets

      • Venture capital and the level of innovation in China

    3. Other trends emerging from the survey included micro buyouts - accessing fast growing businesses at attractive valuations - and continued opportunities in buy and build using the resources of private equity to build stronger businesses.

      How HarbourVest is capturing these megatrends / opportunities

      Access to these opportunities:

    4. Backing top managers and companies investing behind strong secular trends

    5. Growing coverage of micro buyout markets, positioned to capture growth

    6. Local teams in Asia across offices in Beijing, Hong Kong, Tokyo, and Seoul focused on investment opportunities in this region with an emphasis on China

    7. Continued focus on seed/early stage investments, and access to the best venture managers globally

    8. Partnering with managers that help established companies adapt to technological advances - many of which may need private capital to facilitate

      Harnessing these opportunities through optimal portfolio construction:

    9. Constructing portfolios optimised with appropriate stage, geographic and industry diversification

    10. Continuous investment through the cycle to capture themes as they develop

      Last 10 years - Some of the biggest surprises and opportunities

      On the upside:

    11. The huge impact of the internet and shift of global consumer spending to online

    12. Investing early in the innovation of new and disruptive technologies. The growth of mobile devices that changed human behaviour (e.g. Facebook) and created new industries like sharing economies or on-demand services (Uber) and new methods of payment. Power of the business model over intellectual property.
    13. Returns from venture capital ("VC") globally:
      • Driven by broad adoption of the internet and mobile phone

      • The strength of VC in China - seven of the top ten most highly valued unicorn companies above $1 billion located outside the US are in China*

    14. Response to digitalisation by small and mid-cap managers in Europe/UK
    15. The success of secondaries in Europe: spinout transactions, take privates, or GP-led liquidity solutions, continued innovation from HarbourVest Partners in this market

    16. Consolidation and operational enhancement On the downside:

    17. The underperformance of Latin America against everyone's expectations.

    Richard Hickman, Director of Investment and Operations, HVPE, commented: "HVPE has built a 10-year track record of outperformance via its unique access to HarbourVest funds. Alongside traditional private equity buyouts, HVPE has also invested early in disruptive technologies emerging from the rapid growth of the internet and smartphone penetration, in geographical opportunities like Asia, and in the broader success of venture and secondaries.

    "Looking to the next 10 years, HVPE's diverse portfolio should provide exposure to the major global investment "megatrends" foreseen by our 30 Managing Directors around the world - from rapid technological advances, global demographic shifts, and the prominence of China as a global power.

    "HVPE offers a uniquely diversified and liquid play in the private markets, with direct access to HarbourVest's expertise and relationships."

    Enquiries:

    HVPE

    Richard Hickman

    Tel: +44 (0)20 7399 9847

    rhickman@harbourvest.com

    Charlotte Edgar

    Tel: +44 (0)20 7399 9826

    cedgar@harbourvest.com

    HarbourVest Partners

    Laura Thaxter

    Tel: +1 (617) 348 3695

    lthaxter@harbourvest.com

    MHP Communications

    Mark Lunn / Charlie Barker /

    Kelsey Traynor

    Tel: +44(0)20 3128 8100

    hvpe@mhpc.com

    * "The International Unicorn Club: 106 Private Companies Outside the US Valued At

    $1B+", CBInsights.com, 19 September 2017

    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 more than 35 years of experience.

    About HarbourVest Partners, LLC:

    HarbourVest is an independent, global private markets asset manager with more than 35 years of experience and more than $45 billion in assets under management. The Firm's powerful global platform offers clients investment opportunities through primary fund investments, secondary investments, and direct co-investments in commingled funds or separately managed accounts. HarbourVest has more than 400 employees, including more than 100 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $32 billion to newly-formed funds, completed over $18 billion in secondary purchases, and invested over $7 billion directly in operating companies.

    Partnering with HarbourVest, clients have access to customised solutions, longstanding relationships, actionable insights, and proven results.

    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 Ground Floor Dorey Court, Admiral Park, St Peter Port, Guernsey, GY1 2HT.

    © 2017 HarbourVest Global Private Equity Limited. All rights reserved.

    HarbourVest Global Private Equity Ltd. published this content on 28 November 2017 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 28 November 2017 12:52:04 UTC.

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