HarbourVest Private Equity Regulatory News (HVPE)

27 November 2020

RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2020

Resilient net asset value ("NAV") performance

HarbourVest Global Private Equity Limited ("HVPE" or the "Company"), today announces its unaudited results for the six-months ended 31 July 2020.

Highlights - Six months to 31 July 2020

· Increase in NAV per share of 2.2% to $28.18 (31 January 2020: $27.58)

o Outperformance of FTSE All World Total Return Index by 2.3% over period

o Opportunistic secondary co-investment transaction was largest single-fund contributor to NAV per share growth

o $54.6m net gain on investments (2019: $141.7m)

o Underpinned by resilient sector exposures and rebound in public markets

· Net investor during the period. Distributions driven by venture strategies

o $214.2m cash invested (2019: $202.4m)

o $78.7m distributions received (2019: $138.9m), the majority from venture-backed companies, many in the technology and healthcare sectors

o Largest distribution from partial sale of shares in TeamViewer following IPO

o Significant proceeds also received from Knowlton Development Corporation, Lytx and Saba Software

· Decisive and prudent action taken in response to COVID-19

o Bottom up portfolio risk assessment undertaken

o Balance sheet scenarios revisited

o $200.0m draw on the credit facility in April; $80.0m repaid in July

o Commitment plan placed temporarily on hold

· Sufficient liquidity to support investment pipeline and new opportunities

o Cash balance of $109.8m at period end. $480.0m available on $600.0m credit facility

Encouraging trends post period end despite ongoing uncertainty

· NAV per share $28.60 at 31 October, a 1.5% increase from 31 July 2020

· Updated portfolio risk assessment shows 83% of companies experiencing "moderate to limited" impact as a result of COVID-19

· Improved cashflow profile, with distributions outperforming initial expectations although remaining below pre-COVID-19 levels

· Commitment plan recommenced

Ed Warner, Chair of HVPE, said:

"I am pleased to report that HVPE's NAV per share increased by 2.2% in the first six months of the year in spite of significant headwinds. This reflects the expertise of our Investment Manager and the resilience of HVPE's portfolio through the HarbourVest platform.

"We hope shareholders have been reassured by the decisive actions we have taken to navigate through the challenging conditions created by COVID-19. While we remain alert to the likelihood that the pandemic will remain a cloud over the global economy for some time yet, the calibre of our investments, strength of our balance sheet, current structure of the portfolio and commitments, together provide a firm basis from which to view the future with confidence."

Investor Event

There will be a presentation for institutional and retail investors on 4 December 2020 at 10am GMT. To receive registration details for the event, please contact Liah Zusman: hvpeevents@harbourvest.com.

Semi-Annual Report and Accounts

To view the Company's Semi-Annual Report and Accounts please follow this link: Semi-Annual Report - Six Months to 31 July 2020. 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 located at www.morningstar.co.uk/uk/nsm.

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 2020. The presentation will be publicly disclosed at 11am today. All stakeholders will be able to view and download the presentation from HVPE's website: www.hvpe.com.

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 more than 35 years of experience.

About HarbourVest Partners, LLC:

HarbourVest is an independent, global private markets asset manager with over 35 years of experience and more than $69 billion in assets under management, as of June 30, 2020. 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 600 employees, including more than 145 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $42 billion to newly-formed funds, completed over $25 billion in secondary purchases, and invested over $18 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.

Epidemics, Pandemics and Other Health Risks - Many countries have experienced infectious illnesses in recent decades, including swine flu, avian influenza, SARS and 2019-nCoV (the "Coronavirus"). In December 2019, an initial outbreak of the Coronavirus was reported in Hubei, China. Since then, a large and growing number of cases have been confirmed around the world. The Coronavirus outbreak has resulted in numerous deaths and the imposition of both local and more widespread "work from home" and other quarantine measures, border closures and other travel restrictions causing social unrest and commercial disruption on a global scale. The World Health Organization has declared the Coronavirus outbreak a pandemic. The ongoing spread of the Coronavirus has had and will continue to have a material adverse impact on local economies in the affected jurisdictions and also on the global economy as cross-border commercial activity and market sentiment are increasingly impacted by the outbreak and government and other measures seeking to contain its spread. In addition to these developments having potentially adverse consequences for underlying portfolio investments of the HarbourVest funds and the value of the investments therein, the operations of HVPE, the Investment Manager, and HVPE's portfolio of HarbourVest funds have been, and could continue to be, adversely impacted, including through quarantine measures and travel restrictions imposed on personnel or service providers based around the world, and any related health issues of such personnel or service providers. Any of the foregoing events could materially and adversely affect the Investment Manager's ability to source, manage and divest its investments and its ability to fulfil its investment objectives. Similar consequences could arise with respect to other comparable infectious diseases. 

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 not indicative of, or a guarantee of, future performance. The value of an investment in the Company may fluctuate and share prices and returns may go down as well as up. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision.

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

© 2020 HarbourVest Global Private Equity Limited. All rights reserved.

Chair's Statement

Dear Shareholder,

This is my first statement to shareholders as the new Chair of HVPE, and I am pleased to report that in spite of the global outbreak of coronavirus ("COVID-19"), the Company's NAV per share increased by 2.2% in the first six months of the year. This return reflects the expertise of the Investment Manager and, in turn, the resilience of the underlying general partners and investee companies to which HVPE has exposure through the HarbourVest platform.

Financial Performance

While the $28.18 NAV per share at 31 July 2020 reflects a positive return for HVPE, the six-month period saw much more pronounced NAV fluctuations than usual because of COVID-19. March-end valuations from the underlying managers declined, driven by widespread uncertainty around the impact of the pandemic on the economy and businesses, and against a backdrop of falling stock markets worldwide. However, underpinned by resilient sectors such as technology and healthcare, and alongside a rebound in public markets, HVPE's NAV per share saw a strong return to growth on receipt of Q2 valuations.

Although HVPE's NAV volatility has been much less severe than that of the public markets, the Company's share price nevertheless experienced a sharp fall mid-March, just weeks after reaching an all-time high in sterling of £18.68. This created a substantial widening of the discount to NAV, which reached 60% at its widest in the period. This discount was very similar to that experienced in the depths of the Global Financial Crisis ("GFC"), but thankfully proved short-lived as market participants took advantage of the opportunity to acquire HVPE shares at depressed levels.

At the half-year end, after a substantial rebound, HVPE's share price had risen 66% from its March low to close at £15.28 ($19.90). This marks a decline of 17% from the 31 January 2020 price of £18.36 ($24.15).

Balance Sheet

At the onset of the crisis, as detailed in HVPE's 2020 Annual Report and Accounts, the Board acted swiftly to request a reassessment of the Company's near-term financial projections from the Investment Manager, which conducted an early and thorough portfolio risk assessment exercise, the results of which fed into a set of updated forecast scenarios. In anticipation of a likely negative impact on cash flows, and to ensure HVPE was fully prepared for a worst-case scenario, the Board drew on the Company's $600.0 million credit facility (the "Facility"). In April a drawdown of $200.0 million was initiated to ensure sufficient near-term liquidity to address any potential cash flow imbalances. As expected, distributions did slow markedly, while the elevated capital calls from HarbourVest funds seen in March continued into April, before moderating for the remainder of the reporting period. HVPE's Facility was put in place as a back stop to cover any periods such as this, enabling us to continue to invest through downturns and to take advantage of attractive opportunities as they arise. As cash flows began to recover, in July the Board approved a partial repayment of $80.0 million. As at 31 July 2020, HVPE held cash and cash equivalents of $109.8 million on its balance sheet, with a balance of $120.0 million outstanding on the Facility.

Given the material economic uncertainty, the Board also took the prudent step of temporarily pausing new commitments to HarbourVest funds. This pre-emptive measure was intended to help alleviate any risk of increased pressure on the balance sheet. It has since been agreed to recommence the commitment plan. However, we should remind shareholders that due to the Company's existing unfunded commitments to HarbourVest funds, there has been consistent deployment into investment opportunities, as evidenced by capital calls through the period. The Board also agreed in May to participate in a secondary co‑investment transaction, made available to HVPE as a result of existing commitments to HarbourVest funds. This echoed events following the GFC, when HVPE used its credit facility to invest alongside HarbourVest funds in two prominent public to private transactions, both of which delivered attractive returns to the Company.

Board Changes

At the AGM in July, Sir Michael Bunbury stood down as Chair, having led the Board with distinction since HVPE's inception in 2007. On behalf of all shareholders I would like to thank him for his immense contribution to the growth of the Company.

In planning for the retirement of other long-standing directors over the next couple of years, we are very much alive to the benefits the Board might gain from increasing further the diversity of its members. The Board welcomes initiatives such as the Hampton-Alexander Review, and will consider all aspects of diversity as part of our succession planning.

Period Post HALF-Year End

Financial Performance

Since the half-year end, HVPE has published three NAV updates. At 31 October, the NAV per share stood at $28.60, an increase of 1.5% from 31 July 2020. This is still largely based on 30 June 2020 valuations. The Board is encouraged by the improved cash flow profile in recent months and the continued progress in the underlying portfolio. A particularly strong contributor post period came from a large software Initial Public Offering ("IPO"), and provides an example of the opportunities that investment in HVPE can provide exposure to. Alongside the value of the Company's portfolio, the share price has also continued to recover, reaching £17.24 as at 20 November 2020, an increase of 12.8% from 31 July 2020.

Portfolio Risk Assessment Update

The Recent Events section contains the results of an updated portfolio risk assessment exercise on page 8. We remain encouraged by the improved outcome, citing that the vast majority of companies assessed (83%) fall into the "moderate to limited" impact categories at October 2020, against 81% for the same data set in April.

Update on ESG

As an increasingly important focus, we asked the Investment Manager to provide an update on its ESG initiatives. The Board remains encouraged by HarbourVest's heightened attention to ESG issues in screening underlying managers. In addition, as part of the Management Engagement and Service Provider Committee's annual review, the Board now evaluates service providers on their approach to ESG factors.

Outlook

The Directors recognise that this has been a challenging time for many, and hope all HVPE's shareholders and stakeholders have been reassured by the decisive actions taken by this Board on their behalf, to navigate through the adversity to date. While the growth in HVPE's NAV per share so far this year has been pleasing, COVID-19 is likely to remain a cloud over the global economy for some time yet. That said, the calibre of our investments, the current structure of the portfolio and the Company's commitments, together provide a firm basis from which to view the future with confidence.

Ed Warner

26 November 2020

Investment Manager's Report

INTRODUCTORY NOTE

This report presents a summary of the Company's performance in the six months to 31 July 2020. During this period, the far-reaching impact of COVID-19 weighed on economic activity around the world, and continues to do so at the time of writing.

In this report, disclosure is provided regarding the steps taken by the Board and the Investment Manager to meet the ongoing challenges arising from these adverse circumstances. More specifically:

· In this section, under Portfolio Performance below, an update on performance over the reporting period with reference to the impact of COVID-19 is provided.

· Under Recent Events on page 8, the latest developments since the half-year end, and position of the NAV per share, following publication of the latest month-end estimate (31 October 2020), on 20 November 2020 are detailed.

· Within the Period Since 31 July 2020 section on page 9 the effect on HVPE's share price is considered.

· Due to the material impact that COVID-19 has had on society and the economy, and in turn, the Company, the Principal Risks and Uncertainties section on pages 20 to 21 has been updated to reflect any additional risks the Board has identified as a result of the pandemic.

· The assumption that the Company is and will continue to be a Going Concern at the date of this report, as detailed in the section on page 34, has been considered in light of COVID-19 and has been supported by updated models provided by the Investment Manager.

PORTFOLIO PERFORMANCE

NAV Per Share - Six Months to 31 July 2020

HVPE's portfolio generated a positive NAV per share return in the six months to 31 July 2020. The Company's NAV per share increased by 2.2% over the reporting period from $27.58 at 31 January 2020 to $28.18 at 31 July 2020.

Despite this solid half-year performance, it is important to note that the onset of COVID-19 did lead to increased volatility in HVPE's monthly estimated NAV per share performance throughout the reporting period. In particular, the estimated NAV per share figure at 30 June 2020 of $25.67, which largely reflected Q1 2020 valuations, represented a material decline from the audited 31 January 2020 NAV per share of $27.58. The subsequent receipt of Q2 2020 valuations, however, revealed strong gains across all strategies as the global economy had staged a partial recovery. These Q2 2020 valuations form the basis of the final 31 July 2020 NAV per share figure quoted in this report. Additionally, expenses over the six-month period were more than offset by gains in foreign currency.

Most major equity market indices ended the first half of the calendar year broadly flat after strong, "V-shaped" recoveries during the second quarter. HVPE's public market benchmark, the FTSE AW TR Index (in US dollars), marginally decreased by 0.1% in the six months to 31 July 2020. Although HVPE's NAV per share growth of 2.2% materially outperformed this over the period, public markets tend to be more volatile especially during periods of uncertainty, and therefore short-term comparisons are less meaningful. Longer-term comparisons through the cycle are more reflective of HVPE's relative performance; measured over the ten years to 31 July 2020, HVPE's NAV per share outperformed the FTSE AW TR Index by 2.6% on an annualised basis in US dollar terms (refer to the Alternative Performance Measures on page 54 for this calculation).

During the six months ended 31 July 2020 there was a $54.6 million net gain on investments, contributing to an overall increase in net assets of $48.1 million. Of the $54.6 million, the majority - 74% - came from unrealised growth within the portfolio. This compares with a $141.7 million net gain on investments and overall increase in net assets of $136.3 million for the six months to 31 July 2019. The lower overall net gains in this reporting period compared to the same period last year reflect the reduced exit activity during the six months, and overall impact of COVID-19 on the portfolio.

In percentage terms, the Primary portfolio was the best performing strategy, delivering value growth of 4.4% over the six months. Geographically, the strongest gains came from the European portfolio, which generated a value increase of 3.6%; this was followed closely by the US assets, which returned 3.5%. In terms of stage, Venture and Growth Equity was the strongest performer, growing 8.1% over the six months ended 31 July 2020. More information on the growth drivers can be found on page 25.

As at 31 July 2020, HVPE held investments in 49 HarbourVest funds and eight secondary co‑investments1 (compared with 49 and seven, respectively, at 31 January 2020). Of these, the largest drivers of NAV per share growth during the six months to 31 July 2020 are described below:

· Secondary Overflow IV was the largest contributor, adding $0.16 to HVPE's NAV per share. This fund includes the June 2020 equity commitment to an attractive secondary deal made available to HVPE as a result of its existing commitments to HarbourVest funds, as detailed on page 12 of the Company's 2020 Annual Report and Accounts. This growth was driven by unrealised gains generated by revaluation and asset appreciation over the period.

· Fund X Venture, a US-focused venture fund-of-funds, was the second largest contributor adding $0.12 to NAV per share. This is a 2015 vintage fund in its growth phase. Most of this contribution came from unrealised gains.

· Following closely behind this was Co-Investment V, a global direct co-investment fund, which added $0.10. This 2018 vintage fund is currently in the investment phase. As might be expected at this stage in the fund's life, most of this growth was derived from unrealised gains.

· Fund IX Venture, a 2011 vintage US-focused venture fund-of-funds, also added $0.10 to NAV per share.

· Dover X, a 2019 vintage global secondary fund, was the fifth largest contributor, adding $0.08 to NAV per share over the period.

1 These include five Secondary Overflow III investments, one Secondary Overflow IV investment, and Absolute, referred to as "HVPE Avalon Co-Investment L.P.", and Conversus, referred to as "HVPE Charlotte Co-Investment L.P.", in the Unaudited Condensed Interim Consolidated Schedule of Investments. Absolute has been fully realised; however, $466,198 remains in escrow.

PORTFOLIO CASH FLOWS AND BALANCE SHEET

HVPE was a net investor in the six months to 31 July 2020, following capital calls of $214.2 million into HarbourVest funds (six months to 31 July 2019: $202.4 million) and cash distributions of $78.7 million (six months to 31 July 2019: $138.9 million). This resulted in $135.5 million net investment over the reporting period, driven by elevated capital calls during March and April. While this capital was deployed primarily into new opportunities, part of the total was used to support existing investments and to fund deals closed in the preceding months.

Elevated capital calls coincided with a sharp fall in distributions beginning in April and May, with the result that HVPE experienced significant cash outflow on a net basis. As a prudent measure, on 9 April 2020, HVPE provided notice to its lenders, Credit Suisse and Mitsubishi UFJ, to draw down $200.0 million from the Company's $600.0 million Facility. Subsequently, based on an updated cash flow analysis presented by the Investment Manager, the Board approved an $80.0 million partial repayment. At 31 July 2020, following this repayment, the Facility was $120.0 million drawn, leaving HVPE with access to the remaining $480.0 million. Together with the Company's cash balance, this large pool of available liquidity ensures that HVPE retains the ability to meet its unfunded commitments (the "Investment Pipeline") and allows for the potential to capitalise on new opportunities as they arise. Overall, net negative cash flow including operating expenses in the period resulted in HVPE's cash balance declining from $130.6 million at 31 January 2020 to $109.8 million at 31 July 2020 (noting that the closing cash position includes the contribution from the $120.0 million draw on the credit facility). As a reminder, the Facility has a five-year evergreen structure. At the outset it had an initial two-year no-notice provision, giving an initial term of seven years to January 2026. From January 2021, the lenders have the option to serve notice, but the notice given must be a minimum of five years.

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 (referred to as HarbourVest Partners ("HVP") fund-level borrowing) in which HVPE is a Limited Partner ("LP"). It is important to note that HVPE has no additional liability for these borrowings beyond its uncalled commitments to each fund. The majority of this fund-level borrowing represents delayed capital calls, as a portion of the unfunded commitments has been invested through the use of subscription credit lines at the fund level, but the capital has not yet been called from HVPE.

At 31 July 2020, HVPE's share of HVP fund-level borrowing on a look-through basis was $357.0 million, a net decrease of $9.8 million from $366.8 million at 31 January 2020. Expressed as a percentage of NAV, the figure decreased from 16.7% to 15.9% over the six-month period. In order to estimate the total potential impact on NAV, an investor should take the total fund-level borrowing figure of $357.0 million and factor in HVPE's net cash/debt position at the Company level (net debt $10.2 million). As at 31 July 2020, the resulting net total borrowing figure of $367.2 million would translate to an approximate level of look-through gearing of 16.3%. More detail on the HVP fund-level borrowing, and how we factor this into our balance sheet management, can be found under Managing the Balance Sheet on page 27 of the Company's 2020 Annual Report and Accounts. Further detail on the Facility, and criteria upon which it can be drawn, can be found under Note 6 Debt Facility on page 48 of the Unaudited Condensed Interim Consolidated Financial Statements.

In the reporting period, the largest HarbourVest fund capital call ($31.5 million) came from Fund XI Buyout, a 2018 vintage US-focused buyout fund-of-funds. Other large capital calls originated from Co-Investment V ($30.0 million) and Fund XI Venture ($25.7 million), both 2018 vintage funds currently in the investment phase and building out their portfolios. Following these were calls to fund investment activity from Fund X Buyout ($17.6 million), 2019 Global Fund ($11.5 million), and Dover X ($10.0 million).

Distributions in the HVPE portfolio were driven by a mix of HarbourVest funds across all strategies, with the largest total amount in the period ($9.7 million) received from Fund IX Venture, a US-focused venture fund-of-funds currently approaching its mature phase, which distributed proceeds received from multiple underlying partnerships. The 2013 Direct Fund, a global direct co-investment fund in its growth phase, followed with distributions totalling $7.7 million, which included proceeds received from the 2019 sale of UK-based telecom tower operator Eaton Towers.

PORTFOLIO COMPANIES

During the period, the ten largest individual company realisations by HVPE's share of proceeds generated total distributions of $39.2 million. Of these ten companies, four were in HVPE's top 50 portfolio companies at 31 January 2020. Further details are provided on these four below (ordered by size of distribution). The top ten distributions by value are listed on page 24.

· HVPE received $6.0 million from the partial sale of publicly-traded shares of TeamViewer over the period. TeamViewer, a software solutions provider listed on the Frankfurt Stock Exchange, was HVPE's ninth largest company at 31 January 2020.

· HVPE's share of proceeds from the investment held in Knowlton Development Corporation ("KDC"), a leading contract manufacturer of health and personal care products, was $4.3 million. KDC was HVPE's 12th largest company at 31 January 2020.

· HVPE received $3.6 million from the investment held in Lytx, a provider of video safety telematics software for vehicles. Lytx was HVPE's 11th largest company at 31 January 2020.

· HVPE's share of proceeds from the sale of human resources software solutions provider Saba Software to Cornerstone OnDemand, was $3.5 million. Saba Software was HVPE's 49th largest company at 31 January 2020.

During the six months ended 31 July 2020, there were 119 liquidity events, down from 178 for the six months to 31 July 2019. This represents a decline of 33% compared to the same period last year. The lower volume of exit activity for the first half of 2020 resulted from the disruption and associated uncertainty caused by COVID-19, leading many General Partners ("GPs") to suspend or delay exit processes. Approximately 73% (87) of the liquidity events in HVPE's portfolio were trade sales or sponsor-to-sponsor transactions, with the remaining 27% (32) being IPOs. Notable IPOs during the period included Zoom Information (business database provider), GoHealth (technology-based health insurance services), and Revolution Medicines (clinical-stage oncology).

Of HVPE's total 119 liquidity events, 81, or 68%, related to venture-backed companies. This figure is representative of wider market trends as there were a considerable number of venture-related exits in the first half of the year, with the technology and healthcare sectors dominating this activity.

COMPANY ACTIVITY

New Fund Commitments

In the six months ended 31 July 2020, HVPE made total commitments of $87.8 million across two HarbourVest funds (six months to 31 July 2019: $315.0 million). This took total unfunded commitments to $1.7 billion at 31 July 2020.

Of the total capital committed, the largest commitment ($50.0 million) was made to Dover X, a global secondary fund. This brings the total amount committed by HVPE to this fund to $150.0 million. The remaining amount was a commitment of $37.8 million to a secondary transaction within Secondary Overflow IV as mentioned on page 4 of this report. The deal is structured such that HVPE has made a gross commitment of $37.8 million but expects only half of this amount ($18.9 million) to be called over time.

These commitments are in line with the Company's Strategic Asset Allocation ("SAA") targets and reflect the Investment Manager's and Board's current perspective on the most appropriate portfolio composition required to optimise long-term NAV growth for shareholders.

The comparatively low level of commitments made during the first half of the year was a result of a decision by the Board and the Investment Manager to place HVPE's commitment plan in respect of new HarbourVest funds temporarily on hold, in order for the Investment Manager to review the Company's portfolio construction priorities during this uncertain period. A further assessment has since been made, and new fund commitments have restarted as reported under Recent Events on page 8. In the meantime, HarbourVest funds from the existing Investment Pipeline have continued to call capital for new investments, enabling the Company to take advantage of attractive opportunities.

MARKET ENVIRONMENT: six months to 30 june 20201

Private equity fundraising remained robust in the US and Europe during the first half of 2020, totalling $101.6 billion (H1 2019: $102.8 billion) and €19.6 billion (H1 2019: €12.0 billion), respectively, across a total of 139 funds (H1 2019: 76 funds). The comparably high figures this year were driven by established GPs with long-standing LP relationships, which had started their fundraising processes earlier in the year.

By contrast, investment activity slowed down significantly across all regions with deal activity totalling $326.7 billion in the US (H1 2019: $404.7 billion) and €46.3 billion in Europe (H1 2019: €73.7 billion) - decreases of 19% and 37%, respectively. The sharp decline in capital deployed was driven by a multitude of COVID-19-related factors as GPs temporarily paused or terminated transactions, with attention re-focused on existing portfolio companies. Unprecedented policy action from central banks and governments has led to a partial recovery in recent months. However, the "second wave" of COVID-19-induced lockdowns could potentially dampen the prospect of an imminent return to normal levels of investment activity. In the interim, bolt-on investment strategies and distressed opportunities may be attractive propositions for GPs, along with fast-growing sectors such as cloud computing, ecommerce, cybersecurity, cashless payments, and collaboration software.

Exit value and volume in the private equity asset class were materially lower across all regions during the first half of the year. Public market volatility and economic uncertainty resulted in significant markdowns for some portfolio company valuations at the end of Q1. This may explain the considerable reduction in appetite for exits in April and May, indicating that GPs generally preferred to extend holding periods rather than liquidate assets at potentially discounted prices. Estimated exits in the US totalled $138.4 billion and 392 in number, representing declines of 37% and 36% in value and volume, respectively, compared to H1 2019 totals. Asia Pacific and Europe were also subdued, with the latter recording a total €97.0 billion of exits, which puts it on pace for its lowest annual total in six years. Nevertheless, over the summer of 2020 we saw exit activity in all regions begin to rebound following the recovery in public markets in Q2, although considerable uncertainty remains.

1 Source - Pitchbook database.

Recent Events

New Commitments

In October and November 2020, HVPE agreed to participate in three potential transactions as a result of the Company's existing commitments to HarbourVest funds. The combined commitment in principle is up to $34.3 million, however, these deals are subject to completion, and could also be scaled-back. It is anticipated that these transactions will close on or before 31 December 2020. Further information will be provided in the estimated monthly NAVs as and when the transactions complete.

HVPE Published Estimated NAV at 31 October 2020

HVPE publishes its 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 20 November, HVPE published an estimated NAV per share at 31 October 2020 of $28.60 (£22.09), an increase of $0.42 from the final 31 July 2020 NAV (US GAAP) figure of $28.18. This latest NAV per share is based on a valuation breakdown of: 13% as at 31 October (representing the public companies in the portfolio); 3% actual 30 September 2020; and 84% actual 30 June 2020. Consistent with previous estimated NAV reports, valuations are also adjusted for foreign exchange movements, cash flows, and any known material events to 31 October 2020.

The Investment Pipeline of unfunded commitments decreased from $1,681.7 million at 31 July 2020 to $1,613.8 million at 31 October 2020, based on capital funded and taking foreign exchange movements into account.

At the end of October HVPE's borrowing was $120.0 million. HVPE's look-through exposure to borrowing at the HarbourVest fund level had increased by $28.8 million to $385.8 million. The latest balance sheet ratios can be found in the factsheet on the HVPE website (www.hvpe.com).

Portfolio Risk Assessment Update

In April 2020, the Investment Manager embarked on a bottom-up assessment of the likely impact of COVID-19 on HVPE's portfolio. The results of this exercise, as reported in the Company's 2020 Annual Report and Accounts on page 11, indicated that the majority of HVPE's assessed portfolio by value had been deemed likely to experience only a limited or moderate impact, with a relatively small proportion expected to be materially impacted.

By October 2020, the Investment Manager had completed a further second-round portfolio risk assessment. While broadly similar in methodology to the first, this most recent analysis focused on the larger positions within the portfolio. This assessment resulted in approximately 78% of HVPE's portfolio by value being reviewed. To provide a like-for-like comparison, the equivalent April results for the same October sample set have been updated and included below - noting they will differ from the figures published on 24 June 2020.

As of October, 83% of the assessed portfolio was classified as expected to experience limited or moderate impact while only 6% was identified as high risk at that point in time as shown in the chart below. This compares to 81% and 9%, respectively, showing an improvement over the six months.

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.

RISK APPETITE

The Board's investment risk appetite is consistent with an over-commitment policy (as explained on page 50 of the 2020 Annual Report and Accounts) that allows balanced, regular investment through economic and investment cycles whilst ensuring that the Company 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 effectively governed by a cost benefit analysis when assessing mitigation measures.

PRINCIPAL RISKS

As recommended by the Audit and Risk Committee, the Directors have adopted a risk management framework to govern how the Board identifies existing and emerging risks, determines risk appetite, identifies mitigation and controls, assesses, monitors and measures risk, and reports on risks. The Board reviews risks at least twice a year and receives deep-dive reports on specific risks as recommended by the Audit and Risk Committee. At the start of the period under review, the Board had identified 12 main risks which have a higher probability and a significant potential impact on performance, strategy, reputation, or operations (Category A risks). Of these, the five risks identified below were considered the principal risks faced by the Company where the combination of probability and impact was assessed as being most significant. The Board also considered that there were 20 existing or emerging risks (Category B risks), which are monitored on a watch list.

As the COVID-19 pandemic took hold, the Board and the Audit and Risk Committee considered the impact that the situation would have on the Company's business and its service providers. As a result, the Board has elevated risks relating to the Company's loan facility, Key Persons and Valuation from Category B to Category A, and downgraded risks relating to Fund Expenses and MiFID II from Category A to Category B. Due to the material impact that the pandemic has had and will have on society and the economy, and in turn, the Company, the principal risks below are considered through the lens of COVID-19. The Directors, as stated in the "Statement of Directors' Responsibilities in Respect of the Semi-Annual Report and Accounts" on page 35, believe to the best of their knowledge risks set out below also meet the Disclosure Guidance and Transparency Rules ("DTR") requirements.

Directors' Report

Semi-Annual Report and Unaudited Condensed Interim Consolidated Financial Statements

A description of the important events that have occurred during the six months ended 31 July 2020 and their impact on the performance of the Company are given in the Semi-Annual Report and Unaudited Condensed Interim Consolidated Financial Statements (the "Interim Financial Statements") - together the "Semi-Annual Report and Accounts"; specifically the Chair's Statement and the Investment Manager's Report, alongside the Interim Financial Statements, and are incorporated here by reference.

The principal risks and uncertainties facing the Company and how the Company seeks to mitigate them can be found on pages 20 to 21.

There were no material related party transactions which took place in the first six months of the financial year, other than those disclosed in Note 9 to the Interim Financial Statements. There have been no changes to the related party transactions described in the 2020 Annual Report and Accounts that could have a material effect on the financial position or performance of the Company in the first six months of the current financial year.

This Semi-Annual Report and Accounts has been reviewed by the Company's auditor in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board ("ISRE 2410").

INTRODUCTION TO THE Going Concern

Since the inception of HVPE, the Directors have relied upon model scenarios to manage the Company's liquidity requirements and balance sheet risk more generally. This modelling, typically updated annually in November, also allows the Directors to evaluate whether the Company is a Going Concern. While the modelling process has been refined over the years, it has provided a consistent approach through which the Directors have been able to provide a positive Going Concern assessment, as demonstrated through the GFC. Historically the models have assessed four scenarios: Optimistic, Base, Pessimistic and Extreme Downside presented by the Investment Manager. The onset of COVID-19 and the subsequent portfolio assessment undertaken by HarbourVest led the Company to update its models mid-year as described on page 28 of HVPE's 2020 Annual Report and Accounts. Given the uncertainty at that point in the pandemic the Base and Pessimistic scenarios were described as High Base and Low Base cases. For the purpose of assessing the Going Concern and the Viability Statement over one year and five years, respectively, for the 2020 Annual Report and Accounts, the Directors primarily focused on two scenarios: the Low Base and the Extreme Downside. The Low Base was effectively similar to previous Pessimistic scenarios; however, the name was updated to reflect the higher degree of focus on the Low Base for planning purposes.

Following a more optimistic tracking of the scenarios than anticipated over the six months to 31 July 2020, the Investment Manager has completed the annual model scenario update and reverted to its pre-COVID model scenarios (Optimistic, Base, Pessimistic and Extreme Downside). These have been used to form the basis of the Going Concern as provided below; they are updated to reflect recent performance and are therefore not directly comparable with the scenarios presented in the 2020 Annual Report and Accounts.

Going Concern

The performance of the investments held by the Company over the reporting period are described in Note 4 to the Interim Financial Statements and the outlook for the future is described in the Chair's Statement. The Company's financial position, its cash flows, and liquidity position are set out within the Semi-Annual Report and Accounts. Details of its financial instruments, and its exposures to market risk, liquidity risk, and cash flow risk, are set out in the Governance Report on pages 60 and 61 in the Company's 2020 Annual Report and Accounts, and are unchanged.

In addition, the Board has performed a robust assessment of the principal risks facing HVPE, along with the assessment of the Going Concern of the Company for the period to 31 December 2021, and believes that there will be no material change in the principal risks of the Company for the next six months. The latest Principal Risks and Uncertainties can be found on pages 20 to 21.

As part of this exercise the Board considered the Optimistic, Base, Pessimistic and Extreme Downside model scenarios assuming varying degrees of COVID-19-related portfolio impact over the period ending 31 December 2021. The assessment primarily focused on the Base and Extreme Downside cases. The Base case was considered a reasonable scenario given the current economic environment and possible ongoing impact related to COVID-19. While this case was the primary focus of the Board in assessing the Going Concern of the Company, the Extreme Downside case was also considered and was designed to specifically stress the balance sheet with multiple worst case scenarios all playing out over the period to 31 December 2021. The Board does not believe the Extreme Downside case is a likely scenario but factors this into the Going Concern assessment. The results of these model scenarios showed that the Company would be able to withstand the impact of such circumstances should they play out during that period.

In the assessment of the Going Concern status of the Company the Board also considered portfolio activity through to 26 November 2020, more specifically to validate the assumptions used. The Board compared the projections for the period from 1 February 2020 to 31 October 2020 under the Base case to the actual out-turn during that period, and for reference, to the equivalent period in 2019. Based on the review of actual activity compared to model projections through to 26 November 2020, the Board has a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period ending 31 December 2021. Accordingly, it continues to adopt the Going Concern basis in the preparation of this Semi-Annual Report and Accounts.

Statement of Directors' Responsibilities in Respect of the Semi-Annual Report and Accounts

The Directors are responsible for preparing the Semi-Annual Report and Accounts in accordance with applicable law and regulations.

The Directors confirm that to the best of their knowledge:

· the Semi-Annual Report and Accounts have been prepared in accordance with US GAAP and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

· the Chair's Statement, Investment Manager's Report, and Principal Risks and Uncertainties section include a fair review of the information required by:

(i) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the Interim Financial Statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(ii) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or the performance of the entity during that period; and any changes in the related party transactions described in the 2020 Annual Report that could do so.

By order of the Board

26 November 2020

Unaudited Condensed Interim Consolidated Statements of Assets and Liabilities

At 31 July and 31 January 2020

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

The Unaudited Condensed Interim Consolidated Financial Statements on pages 37 to 49 were approved by the Board on 26 November 2020 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 2020 and 2019

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 Periods Ended 31 July 2020 and 2019

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 Periods Ended 31 July 2020 and 2019

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 2020

* 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.

‡ Includes ownership interest in Dover Street VII (AIV 1) Cayman L.P.

§ Fund denominated in euros. Commitment amount is €47,450,000.

** 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 2020, the cost basis of partnership investments is $1,791,466,864.

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

At 31 January 2020 (Audited)

* 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.

‡ Includes ownership interest in Dover Street VII (AIV 1) Cayman L.P.

§ Fund denominated in euros. Commitment amount is €47,450,000.

** 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 January 2020, the cost basis of partnership investments is $1,641,567,593.

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

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

Note 1 Company Organisation and Investment Objective

HarbourVest Global Private Equity Limited (the "Company" or "HVPE") is a closed-ended investment company registered with the Registrar of Companies in Guernsey under The Companies (Guernsey) Law, 2008 (as amended). The Company's registered office is BNP Paribas House, St Julian's Avenue, St Peter Port, Guernsey, GY1 1WA.

The Company was incorporated and registered in Guernsey on 18 October 2007. HVPE is designed to offer shareholders long-term capital appreciation by investing in a diversified portfolio of private equity investments.

The Company invests in private equity through private equity funds and may make co-investments or other opportunistic investments. The Company is managed by HarbourVest Advisers L.P. (the "Investment Manager"), an affiliate of HarbourVest Partners, LLC ("HarbourVest"), a private equity fund-of-funds manager. The Company is intended to invest in and alongside existing and newly formed HarbourVest funds. HarbourVest is a global private equity fund-of-funds manager and typically invests capital in primary partnerships, secondary investments, and direct investments across vintage years, geographies, industries, and strategies.

Operations of the Company commenced on 6 December 2007, following the initial global offering of the Class A ordinary shares.

Share Capital

At 31 July 2020, the Company's shares were listed on the London Stock Exchange under the symbol "HVPE". At 31 July 2020, there were 79,862,486 shares issued and outstanding. The shares are entitled to the income and increases and decreases in the Net Asset Value ("NAV") of the Company, and to any dividends declared and paid, and have full voting rights. Dividends may be declared by the Board of Directors and paid from available assets subject to the Directors being satisfied that the Company will, immediately after payment of the dividend, satisfy the statutory solvency test prescribed by The Companies (Guernsey) Law, 2008 (as amended).

Dividends will be paid to shareholders pro rata to their shareholdings.

The shareholders must approve any amendment to the Memorandum and Articles of Incorporation. The approval of 75% of the shares is required in respect of any changes that are administrative in nature, any material change from the investment strategy and/or investment objective of the Company, or any change to the terms of the investment management agreement.

There is no minimum statutory capital requirement under Guernsey law.

Investment Manager, Company Secretary, and Administrator

The Directors have delegated certain day-to-day operations of the Company to the Investment Manager and the Company Secretary and Administrator, under advice to the Directors, pursuant to service agreements with those parties, within the context of the strategy set by the Board. The Investment Manager is responsible for, among other things, selecting, acquiring, and disposing of the Company's investments, carrying out financing, cash management, and risk management activities, providing investment advisory services, including with respect to HVPE's investment policies and procedures, and arranging for personnel and support staff of the Investment Manager to assist in the administrative and executive functions of the Company.

Directors

The Directors are responsible for the determination of the investment policy of the Company on the advice of the Investment Manager and have overall responsibility for the Company's activities. This includes the periodic review of the Investment Manager's compliance with the Company's investment policies and procedures and the approval of certain investments. A majority of directors must be independent directors and not affiliated with HarbourVest or any affiliate of HarbourVest.

Note 2 summary of significant accounting policies

Accounting policies have been applied consistently as presented in the latest audited accounts.

Note 3 Material Agreements and Related Fees

Administrative Agreement

The Company has retained BNP Paribas ("BNP") as Company Secretary and Administrator. Fees for these services are paid as invoiced by BNP and include an administration fee of £50,000 per annum, a secretarial fee of £60,000 per annum, compliance services fee of £15,000 per annum, ad-hoc service fees, and reimbursable expenses.

During the period ended 31 July 2020, fees of $78,780 were incurred to BNP and are included as other expenses in the Unaudited Condensed Interim Consolidated Statements of Operations. During the period ended 31 July 2019, fees of $73,266 were incurred to BNP and are included as other expenses in the Unaudited Condensed Interim Consolidated Statements of Operations.

Registrar

The Company has retained Link Asset Services (formerly "Capita") as share registrar. Fees for this service include a base fee of £12,870, plus other miscellaneous expenses. During the periods ended 31 July 2020 and 2019, registrar fees of $25,370 and $21,427, respectively, were incurred and are included as other expenses in the Unaudited Condensed Interim Consolidated Statements of Operations.

Independent Auditor's Fees

For the periods ended 31 July 2020 and 2019, fees of $184,826 and $142,983 were accrued, respectively, and are included in professional fees in the Unaudited Condensed Interim Consolidated Statements of Operations. The 31 July 2020 and 2019 figures include $103,372 and $64,443, respectively, which represents approximately half of each period's respective annual audit fee. In addition, the 31 July 2020 and 2019 figures include fees of $81,454 and $71,738, respectively, for audit-related services due to the Auditor, Ernst & Young LLP, conducting a review of the Interim Financial Statements for each period end. Other non-audit fees paid to the Auditor by the Company were nil for the periods ended 31 July 2020 and 2019.

Investment Management Agreement

The Company has retained HarbourVest Advisers L.P. as the Investment Manager. The Investment Manager is reimbursed for costs and expenses incurred on behalf of the Company in connection with the management and operation of the Company. The Investment Manager does not directly charge HVPE management fees or performance fees other than with respect to parallel investments. However, as an investor in the HarbourVest funds, HVPE is charged the same management fees and is subject to the same performance allocations as other investors in such HarbourVest funds. During the periods ended 31 July 2020 and 2019, reimbursements for services provided by the Investment Manager were $1,013,431 and $956,184, respectively.

On 30 July 2019, HVPE approved a revised Investment Management Agreement, which has been updated for legal and regulatory changes, and other minor amendments.

During the periods ended 31 July 2020 and 2019, HVPE had two parallel investments: HarbourVest Acquisition S.à.r.l. (via HVPE Avalon Co-Investment L.P.) and HarbourVest Structured Solutions II, L.P. (via HVPE Charlotte Co-Investment L.P.). Management fees paid for the parallel investments made by the Company were consistent with the fees charged by the funds alongside which the parallel investments were made during the periods ended 31 July 2020 and 2019. The HVPE Avalon Co-Investment L.P. management fee was terminated on 30 September 2017.

Management fees included in the Unaudited Condensed Interim Consolidated Statements of Operations are shown in the table below:

For the periods ended 31 July 2020 and 2019, management fees on the HVPE Charlotte Co-Investment L.P. investment were calculated based on a weighted average effective annual rate of 0.89% on capital originally committed (0.87% on committed capital net of management fee offsets) to the parallel investment.

Note 4 Investments

In accordance with the authoritative guidance on fair value measurements and disclosures under generally accepted accounting principles in the United States, the Company discloses the fair value of its investments in a hierarchy that prioritises the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:

Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active.

Level 3 - Inputs that are unobservable. Generally, the majority of the Company's investments are valued utilising unobservable inputs, and are therefore classified within Level 3.

Level 3 investments include limited partnership interests in HarbourVest funds which report under US generally accepted accounting principles. Inputs used to determine fair value are primarily based on the most recently reported NAV provided by the underlying investment manager as a practical expedient under ASC 820. The fair value is then adjusted for known investment operating expenses and subsequent transactions, including investments, realisations, changes in foreign currency exchange rates, and changes in value of private and public securities.

Income derived from investments in HarbourVest funds is recorded using the equity pick-up method. Under the equity pick-up method of accounting, the Company's proportionate share of the net income (loss) and net realised gains (losses), as reported by the HarbourVest funds, is reflected in the Unaudited Condensed Interim Consolidated Statements of Operations as net realised gain (loss) on investments. The Company's proportionate share of the aggregate increase or decrease in unrealised appreciation (depreciation), as reported by the HarbourVest funds, is reflected in the Unaudited Condensed Interim Consolidated Statements of Operations as net change in unrealised appreciation (depreciation) on investments.

Because of the inherent uncertainty of these valuations, the estimated fair value may differ significantly from the value that would have been used had a ready market for this security existed, and the difference could be material.

During the periods ended 31 July 2020 and 2019, the Company made contributions of $214,156,887 and $202,413,602, respectively, to Level 3 investments and received distributions of $78,700,411 and $138,913,095, respectively, from Level 3 investments. As of 31 July 2020, $2,255,615,347 of the Company's investments are classified as Level 3. As of 31 January 2020, $2,065,519,797 of the Company's investments were classified as Level 3.

The Company recognises transfers at the current value at the transfer date. There were no transfers during the periods ended 31 July 2020 and 2019. Investments include limited partnership interests in private equity partnerships, all of which carry restrictions on redemption. The investments are non-redeemable and the Investment Manager estimates an average remaining life of 10 years with a range of 1 to 33 years remaining.

As of 31 July 2020, the Company had invested $3,703,113,852, or 68.8% of the Company's committed capital in investments and had received $3,029,138,380 in cumulative distributions (including dividends from the formerly held investment HarbourVest Senior Loans Europe).

There were no investment transactions during the periods ended 31 July 2020 and 2019 in which an investment was acquired and disposed of during the period.

Note 5 Commitments

As of 31 July 2020, the Company has unfunded investment commitments to other limited partnerships of $1,681,744,372 which are payable upon notice by the partnerships to which the commitments have been made. Unfunded investment commitments of $1,646,620,494 are denominated in US dollars, $25,744,941 are denominated in euros, and $9,378,937 are denominated in Canadian dollars.

As of 31 January 2020, the Company had unfunded investment commitments to other limited partnerships of $1,806,954,923. Unfunded investment commitments of $1,767,642,666 were denominated in US dollars, $27,392,498 were denominated in euros, and $11,919,759 were denominated in Canadian dollars.

Note 6 Debt Facility

As of 31 July 2020 and 2019, the Company had an agreement with Mitsubishi UFJ Trust and Banking Corporation ("MUFG") and Credit Suisse for the provision of a multi-currency revolving credit facility (the "Facility") for an aggregate amount up to $600 million with a termination date no earlier than January 2026, subject to usual covenants. The MUFG commitment was $300 million, and the Credit Suisse commitment was $300 million.

Amounts borrowed against the Facility accrue interest at an aggregate rate of the LIBOR/EURIBOR, a margin, and, under certain circumstances, a mandatory minimum cost. The Facility is secured by the private equity investments and cash and equivalents of the Company, as defined in the agreement. Availability of funds under the Facility and interim repayments of amounts borrowed are subject to certain loan-to-value ratios and portfolio diversity tests applied to the Investment Portfolio of the Company. At 31 July 2020, there was $120,000,000 debt outstanding against the Facility. There was no debt outstanding at 31 January 2020. For the periods ended 31 July 2020 and 2019, interest of $1,356,931 and $16,973, respectively, was incurred. Included in other assets at 31 July 2020 and 31 January 2020 are deferred financing costs of $7,302,643 and $7,976,171, respectively, related to refinancing the Facility. The deferred financing costs are amortised on the terms of the Facility. The Company is required to pay a non-utilisation fee calculated as 100 basis points per annum for the Credit Suisse commitment and 90 basis points per annum for the MUFG commitment. For the periods ended 31 July 2020 and 2019, $2,522,601 and $2,935,360, respectively, in non-utilisation fees have been incurred.

Note 7 Financial Highlights

For the Six-month Periods Ended 31 July 2020 and 2019

* Represents the US dollar-denominated share price.

† Does not include operating expenses of underlying investments.

Note 8 Publication and Calculation of Net Asset Value

The NAV of the Company is equal to the value of its total assets less its total liabilities. The NAV per share is calculated by dividing the Net Asset Value by the number of shares in issue on that day. The Company publishes the NAV per share of the shares as calculated, monthly in arrears, at each month end, generally within 15 days.

Note 9 Related party transactions

Other amounts payable to HarbourVest Advisers L.P. of $83,971 and $92,281 represent expenses of the Company incurred in the ordinary course of business, which have been paid by and are reimbursable to HarbourVest Advisers L.P. at 31 July 2020 and 31 January 2020, respectively.

Board-related expenses, primarily compensation, of $261,450 and $278,582 were incurred during the periods ended 31 July 2020 and 2019, respectively.

Note 10 Indemnifications

General Indemnifications

In the normal course of business, the Company may enter into contracts that contain a variety of representations and warranties and which provide for general indemnifications. The Company's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. Based on the prior experience of the Investment Manager, the Company expects the risk of loss under these indemnifications to be remote.

Investment Manager Indemnifications

Consistent with standard business practices in the normal course of business, the Company has provided general indemnifications to the Investment Manager, any affiliate of the Investment Manager and any person acting on behalf of the Investment Manager or such affiliate when they act in good faith, in the best interest of the Company. The Company is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

Directors' and Officers' Indemnifications

The Company's Articles of Incorporation provide that the Directors, managers or other officers of the Company shall be fully indemnified by the Company from and against all actions, expenses and liabilities which they may incur by reason of any contract entered into or any act in or about the execution of their offices, except such (if any) as they shall incur by or through their own negligence, default, breach of duty, or breach of trust, respectively.

Note 11 Subsequent Events

In the preparation of the Interim Financial Statements, the Company has evaluated the effects, if any, of events occurring after 31 July 2020 and before 26 November 2020, the date that the Interim Financial Statements were issued.

In October and November 2020, HVPE agreed to participate in three potential transactions as a result of the Company's existing commitments to HarbourVest funds. The combined commitment in principle is up to $34.3 million, however, these deals are subject to completion, and could also be scaled-back. It is anticipated that these transactions will close on or before 31 December. Further information will be provided in the estimated monthly NAVs as and when the transactions complete.

There were no other events or material transactions subsequent to 31 July 2020 that required recognition or disclosure in the Interim Financial Statements.

Disclosures

INVESTMENTS

The companies represented within this report are provided for illustrative purposes only, as example portfolio holdings. There are over 9,500 individual companies in the HVPE portfolio, with no one company comprising more than 1.8% of the entire portfolio.

The deal summaries, General Partners (managers), and/or companies shown within the report are intended for illustrative purposes only. While they may represent an actual investment or relationship in the HVPE portfolio, there is no guarantee they will remain in the portfolio in the future.

Past performance is no guarantee of future returns.

FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. In some cases, forward-looking statements can be identified by terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "potential", "should", "will", and "would", or the negative of those terms, or other comparable terminology. The forward-looking statements are based on the Investment Manager's beliefs, assumptions, and expectations of future performance and market developments, taking into account all information currently available. These beliefs, assumptions, and expectations can change as a result of many possible events or factors, not all of which are known or are within the Investment Manager's control. If a change occurs, the Company's business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements.

By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events, and depend on circumstances, that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Any forward-looking statements are only made as at the date of this document, and the Investment Manager neither intends nor assumes any obligation to update forward-looking statements set forth in this document whether as a result of new information, future events, or otherwise, except as required by law or other applicable regulation.

In light of these risks, uncertainties, and assumptions, the events described by any such forward-looking statements might not occur. The Investment Manager qualifies any and all of its forward-looking statements by these cautionary factors.

Please keep this cautionary note in mind while reading this report.

Some of the factors that could cause actual results to vary from those expressed in forward-looking statements include, but are not limited to:

· the factors described in this report;

· the rate at which HVPE deploys its capital in investments and achieves expected rates of return;

· HarbourVest's ability to execute its investment strategy, including through the identification of a sufficient number of appropriate investments;

· the ability of third-party managers of funds in which the HarbourVest funds are invested and of funds in which the Company may invest through parallel investments to execute their own strategies and achieve intended returns;

· the continuation of the Investment Manager as manager of the Company's investments, the continued affiliation with HarbourVest of its key investment professionals, and the continued willingness of HarbourVest to sponsor the formation of and capital raising by, and to manage, new private equity funds;

· HVPE's financial condition and liquidity, including its ability to access or obtain new sources of financing at attractive rates in order to fund short-term liquidity needs in accordance with the investment strategy and commitment policy;

· changes in the values of, or returns on, investments that the Company makes;

· changes in financial markets, interest rates, or industry, general economic or political conditions; and

· the general volatility of the capital markets and the market price of HVPE's shares.

PUBLICATION AND CALCULATION OF NET ASSET VALUE

The NAV of the Company is equal to the value of its total assets less its total liabilities. The NAV per share is calculated by dividing the NAV of the Company by the number of shares in issue. The Company intends to publish the estimated NAV per share as calculated, monthly in arrears, as at each month end, generally within 20 days.

REGULATORY INFORMATION

HVPE is required to comply with the Listing, Disclosure Guidance and Transparency Rules of the Financial Conduct Authority in the United Kingdom (the "LDGT Rules"). It is also authorised by the Guernsey Financial Services Commission as an authorised closed-end investment scheme under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended (the "POI Law"). HVPE is subject to certain ongoing requirements under the LDGT Rules and the POI Law and certain rules promulgated thereunder relating to the disclosure of certain information to investors, including the publication of annual and half-yearly financial reports.

VALUATION POLICY

Valuations Represent Fair Value Under US GAAP

HVPE's 31 July 2020 NAV is based on the 30 June 2020 NAV of each HarbourVest fund, Absolute,1 and Conversus, adjusted for changes in the value of public securities, foreign currency, known material events, cash flows, and operating expenses during July 2020. The valuation of each HarbourVest fund is presented on a fair value basis in accordance with US generally accepted accounting principles ("US GAAP"). See Note 4 in the Notes to the Unaudited Condensed Interim Consolidated Financial Statements on page 47.

The Investment Manager typically obtains financial information from 90% or more of the underlying investments for each of HVPE's HarbourVest funds to calculate the NAV. For each fund, the accounting team reconciles investments, distributions, and unrealised/realised gains and losses to the Financial Statements. The team also reviews underlying partnership valuation policies.

Management of Foreign Currency Exposure

The Investment Portfolio includes three euro-denominated HarbourVest funds and a Canadian dollar-denominated fund. 16.4% of underlying portfolio holdings are denominated in euros. The euro-denominated Investment Pipeline is €22 million.

· 2.2% of underlying portfolio holdings are denominated in sterling. There is no sterling-denominated Investment Pipeline.

· 1.1% of underlying portfolio holdings are denominated in Australian dollars. There is no Australian dollar-denominated Investment Pipeline.

· 0.3% of underlying portfolio holdings are denominated in Swiss francs. There is no Swiss franc-denominated Investment Pipeline.

· 0.5% of underlying portfolio holdings are denominated in Canadian dollars. The Canadian dollar-denominated Investment Pipeline is C$16 million.

HVPE has exposure to foreign currency movement through foreign currency-denominated assets within the Investment Portfolio and through its Investment Pipeline of unfunded commitments, which are long term in nature. The Company's most significant currency exposure is to euros. The Company does not actively use derivatives or other products to hedge the currency exposure.

1 Absolute, referred to as "HVPE Avalon Co-Investment L.P." in the Unaudited Condensed Interim Consolidated Schedule of Investments, has been fully realised. However, $466,198 remains in escrow.