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HarbourVest NAV up 0.1 per cent in October

HarbourVest Global Private Equity, a closed-end investment company listed on Euronext Amsterdam, has reported an estimated net asset value of is USD656.4m, or USD7.91 per share, as at 31 October 2009.

This represents a 0.1 per cent increase from the 30 September 2009 estimated NAV per share of USD7.90.

The increase resulted primarily from valuation increases for privately-held companies in HarbourVest direct funds (approximately USD0.04 per share) as part of the portfolio was revalued to reflect 30 September 2009 results, as well as foreign currency movement related to non-US dollar-denominated holdings (USD0.02 per share).

These gains were partially offset by decreases in the value of publicly-traded holdings to 31 October (USD0.03 per share) and ongoing operating expenses (USD0.02 per share). During the month of October, both the euro and the pound sterling appreciated against the US dollar, and the MSCI All Country World Index (USD) decreased by 1.6 per cent.

During October, HVPE did not make any new commitments or purchase additional interests in HarbourVest-managed funds. During the month, HVPE funded USD12.1m of capital calls to US and non-US fund of funds, the largest portion of which was to a US fund-of-funds focused on buyout investments.

The company received USD2.6m in distributions from two US fund of funds, resulting in a net negative cash flow of USD9.5m. This compares to an average net negative cash flow of approximately USD3.1m per month from 1 February 2009 through 30 September 2009.

HVPE’s investment manager does not believe that the October level of funding reflects significantly increased investment activity for its underlying partnerships. Rather, it represents the timing impact of capital calls from the company’s 20 HarbourVest funds, which typically call capital only once per quarter. Given the level of HarbourVest fund capital calls to date, the current pace could continue or increase during the remaining two months of 2009.

With respect to liquidity, merger and acquisition and initial public offering activity have both increased since 30 June 2009, particularly in comparison to late 2008 and the first half of 2009.

In addition to eight underlying IPOs during the month of October, more recent events within the HVPE portfolio include the IPOs of Myer and, as well as the acquisition of Zappos by

HVPE’s unfunded commitments of USD647.3m decreased by USD11.0m during October, primarily as a result of funding capital calls, partially offset by increases in non-US dollar-denominated commitments. Of the total unfunded commitments, approximately USD460.3m has been committed by HarbourVest funds to underlying partnerships, while the remaining USD187.0m has not yet been committed.

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