HarbourVest Global Private Equity (HVPE) investor relations material

Introduction and context

• A series of new, industry-leading initiatives were announced to address the persistent discount to NAV despite strong share price performance, aiming to deliver greater shareholder value.

• The measures are designed to be shareholder-friendly and to drive shares closer to net asset value, reflecting feedback from major shareholders and advisors.

Key initiatives announced

• The Distribution Pool cap is suspended, and allocation from secondary sale proceeds is increased to 100% for 2024, including $300 million from a recent transaction.

• At least $500 million (about 12% of NAV) will be distributed to shareholders in 2026, including a $400 million tender offer at a 10% discount to NAV and $100 million in share buybacks.

• Annual distributions of 5%-10% of NAV are committed until the next continuation vote, primarily via tenders and buybacks.

• Twice-yearly liquidity reviews will be conducted to identify asset sale opportunities, balancing market conditions and growth potential.

• New commitments are paused for the rest of 2026, but existing commitments ensure ongoing investment activity.

• A subsequent continuation vote is scheduled no later than July 2029, three years after the upcoming 2026 vote.

Rationale and market context

• The persistent discount is attributed to sector-wide challenges and macroeconomic uncertainty, but the measures aim to buck the cycle and narrow the discount.

• The tender offer's 10% discount to NAV reflects secondary market conditions and aims to balance fairness for both exiting and remaining shareholders.

• Dividends are not being introduced, as most shareholders prefer capital growth and tax-efficient capital returns.