HarbourVest Going Public

HarbourVest Partners, a Boston-based fund-of-funds manager, plans to float a newly-formed closed-end investment vehicle on the Euronext Amsterdam. It plans to raise $400 million for HarbourVest Global Private Equity, which would result in a market cap of approximately $830 million.

HarbourVest Global Private Equity Limited (“HVPE”), a newly established, closed-ended investment company, incorporated in Guernsey, today announces its intention to conduct a global offering and a directed offering of Class A ordinary shares (the “Offerings”) and to seek a listing of its shares on Euronext Amsterdam by NYSE Euronext. The new company will be managed by HarbourVest Advisers L.P., an affiliate of HarbourVest Partners, LLC, a leading private equity fund-of-funds manager (“HarbourVest”). 

HVPE will seek to raise up to U.S.$400 million in cash proceeds from the Offerings. In addition to the new funds to be raised, a number of existing HarbourVest limited partners are contributing their interests in existing HarbourVest funds to the company in exchange for shares that will be subject to a lock-up. It is expected that on admission, the company's initial market capitalisation will be approximately U.S.$830 million. 

HVPE is designed to offer shareholders long-term capital appreciation by investing in a private equity portfolio diversified by geography, by stage of investment, by vintage year and by industry. Following the completion of the Offerings, it is expected that HVPE will have more than 90% of its equity capital invested in a carefully selected portfolio of HarbourVest managed funds. This will present a strong platform for NAV growth and a unique opportunity to invest in a high-quality, diversified portfolio. 

HVPE will be the only means to access HarbourVest's investment strategy through a publicly-traded vehicle. It will invest in HarbourVest funds which focus on primary partnership commitments, secondary investments or direct investments in operating companies. 

HarbourVest is one of the largest and longest-established private equity fund-of-funds managers in the world. Over the past 25 years, HarbourVest's investors have committed more than U.S.$29 billion in private equity. It has demonstrated an ability to build top-quartile investment portfolios by actively selecting top-tier managers and allocating assets across private equity strategies. 

Brooks Zug, Director of HVPE and Senior Managing Director of HarbourVest, said: 

“We are very pleased to announce the launch of HVPE. HarbourVest is celebrating its 25th anniversary this year, and HVPE represents the latest phase in our growth. HarbourVest has one of the longest track records in the industry and one of the most experienced management teams, and has achieved top quartile performance across all our private equity activities. HVPE is the only opportunity public equity investors have to access our highly successful funds through a listed vehicle.” 

Highlights of the vehicle: 

– Advised by top quality private equity fund-of-funds manager 

– Largest private equity fund-of-funds manager, with access to leading private equity sponsors 

– 25-year track record of selecting top quartile investment managers 

– An experienced and stable team – 17 Managing Directors who have an average tenure with HarbourVest of 18 years 

– Seeded with a high quality, diversified portfolio at listing 

– More than 90% invested at listing in HarbourVest's funds – a strong platform for NAV growth 

– On average, the net asset value of the initial investment portfolio has increased by 17.7% per year since inception, with average increases of 37.5% over the calendar year to 30 June 2007 and 27.8% per year over the three year period to 30 June 2007 

– As at 31 December 2006, the initial investments of HVPE provide exposure to 524 private equity funds and 5,570 underlying company investments 

– A shareholder friendly structure with strong corporate governance 

– No duplication of fees – public shareholders will be charged on the same basis as limited partners in HarbourVest funds 

– 100% of the Offering expenses will be borne by HarbourVest – no dilution of NAV 

– The Board of Directors of HVPE will initially be comprised of seven members, including the Chairman, Sir Michael Bunbury. The majority of the Board is independent 

George Anson, Director of HVPE and Managing Director of HarbourVest, said: 

“HarbourVest's exceptional performance speaks for itself. HarbourVest Global Private Equity represents a fantastic opportunity for public market shareholders to access private-equity style returns, whilst benefiting from the liquidity of a listed vehicle. This is a compelling offering for shareholders, which we believe provides a strong platform for NAV growth.” 

HarbourVest has appointed Lehman Brothers International (Europe) as Global Coordinator and Lehman Brothers, Deutsche Bank AG, London Branch and Goldman Sachs International as Joint Bookrunners. 

The Offerings are scheduled to close in early December 2007. Upon admission, HarbourVest Global Private Equity Limited's symbol on Euronext Amsterdam by NYSE Euronext will be “HVPE”. 

Notes to Editors: