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Primary Criteria

HarbourVest focuses on identifying and evaluating primary partnership investment opportunities across all stages—venture, buyout, mezzanine debt, distressed debt—and all regions. Long-standing relationships and our open-door policy for meeting with fund managers generate hundreds of primary fund investment opportunities each year. Ultimately, through our rigorous due diligence process and highly selective approach, we have historically invested in 1% of the funds raised.

Investment Selection Process

In evaluating new partnership opportunities, HarbourVest’s due diligence efforts focus on the manager, the investment focus and strategy, and the terms of the partnership.

In evaluating a private equity fund for investment, HarbourVest takes into consideration many factors, including:

• Investment acumen, leadership ability and investment performance track record of the fund's manager
• Attractiveness of the fund's investment focus and strategy
• Economic and other contractual terms governing the fund, the most important of which are:
  • — Fund size, term, management fee and performance allocation
  • — Limitations on the fund's investment by geography or sector
  • — Allocation of transaction and other fees between the fund's investors and its manager
  • — Composition of the advisory board and the rights and obligations of such board