Abigail Rayner is Managing Director at HarbourVest, where she leads the firm’s global evergreen solutions specialist team, bringing private-markets strategies to institutional and private-wealth investors. She has spent nearly two decades in private markets, beginning as an allocator at CPP Investments. Katie and Abigail dig into the fast-growing world of evergreen funds: what the structure actually is, the misconceptions around guaranteed liquidity and cash drag, why a gate is a risk-management feature rather than a failure, how to judge a credible valuation, and why she believes only scaled managers can run these vehicles well. She also explains the Renaissance analogy at the heart of the shift — and why, in an evergreen, the re-up never really stops. About our Guest Abigail Rayner is Managing Director at HarbourVest Partners, based in Toronto, where she leads the firm’s global Evergreen Investment Specialist team — focused on growing HarbourVest’s private-markets evergreen solutions, including commingled funds and separate accounts, for institutional and private-wealth investors. She joined HarbourVest in 2018 as its senior infrastructure and real assets product specialist. Abigail has spent close to two decades in private markets, across both investing and investor relations. She joined HarbourVest from Octopus Group, a mid-market manager in London, where she led an investor relations team and was responsible for fundraising. Earlier, she was at Canada Pension Plan Investment Board in Toronto and London, investing globally in private equity — secondaries, direct co-investments, and primaries — and in direct infrastructure. She holds an HBA from the Ivey Business School at Western University and an MBA from London Business School. Mathematical modelling referenced herein is for illustrative and informational purposes only. It is not representative of any HarbourVest fund, account or experience. Diversification does not guarantee a profit or protect against loss. HarbourVest Partners, LLC (“HarbourVest”) is a registered investment adviser under the Investment Advisers Act of 1940. This material is solely for informational purposes and should not be viewed as a current or past recommendation or an offer to sell or the solicitation to buy securities or adopt any investment strategy. The opinions expressed herein represent the current, good faith views of the author(s) at the time of publication, are not definitive investment advice, and should not be relied upon as such. This material has been developed internally and/or obtained from sources believed to be reliable; however, HarbourVest does not guarantee the accuracy, adequacy, or completeness of such information. There is no assurance that any events or projections will occur, and outcomes may be significantly different than the opinions shown here. This information, including any projections concerning financial market performance, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Nothing herein should be construed as a solicitation, offer, recommendation, representation of suitability, legal advice, tax advice, or endorsement of any security or investment and should not be relied upon by you in evaluating the merits of investing in HarbourVest funds or in any other investment decision. An investment in the private markets involves high degree of risk, and therefore, should be undertaken only by prospective investors capable of evaluating the risks of the Fund and bearing the risks such an investment represents. The following is a summary of only some of the risks of investing in private markets. Risks Related to the Structure and Terms of a Private Markets Fund. Investments in a fund of funds structure may subject investors to additional risks which would not be incurred if such investor were investing directly in private equity funds. Such risks may include but are not limited to (i) multiple levels of expense; and (ii) reliance on third-party management. In addition, a fund may issue capital calls, and failure to meet the capital calls can result in consequences including, but not limited to, a total loss of investment. Fund charges will be incurred in multiple currencies, meaning that payments may increase or decrease as a result of currency exchange fluctuations. The Fund may be subject to substantial fees including transaction fees. These fees are paid out by the Fund, which will impact on the overall return of the Fund. No secondary public market for the sale of units / shares in the Fund exists, nor is one likely to develop. The ability to redeem units / shares will be limited and subject to certain restrictions and conditions as described in the Fund’s Private Placement Memorandum. Performance is subject to taxation which depends on the personal situation of each investor and which may change in the future. Illiquidity of Interests; Limitations on Transfer; No Market for Interests. The possibility of total loss of an investment in a fund exists and prospective investors should not invest unless they can readily bear such a loss. There is currently no market for the interests in HarbourVest-managed funds or accounts, and it is not contemplated that one will develop. An investor in a HarbourVest-managed closed-end fund or account (if applicable) will generally not be permitted to transfer its interest without the consent of the general partner of such fund. Furthermore, the transferability of an interest will be subject to certain restrictions contained in the governing documents of a closed-end fund and will be affected by restrictions imposed under applicable securities laws. The interests should only be acquired by investors able to commit their funds for an indefinite period of time, as the term of the closed-end fund could continue for over 14 years. In addition, there are very few situations in which an investor may withdraw from a private equity closed-end fund. A HarbourVest-managed open-end fund or account (if applicable) will generally provide limited liquidity events for investors, subject to certain restrictions contained in the governing documents of an open-end fund and will be affected by restrictions imposed under applicable securities laws. Risk of Loss. There can be no assurance that the operations of a strategy will be profitable or that the strategy will be able to avoid losses or that cash from operations will be available for distribution to the limited partners. The possibility of partial or total loss of capital of the strategy exists, and prospective investors should not subscribe unless they can readily bear the consequences of a complete loss of their investment. Leverage. The strategy may use leverage in its investment strategy. Leverage may take the form of loans for borrowed money or derivative securities and instruments that are inherently leveraged, including options, futures, forward contracts, swaps and repurchase agreements. The strategy may use leverage to acquire, directly or indirectly, new investments. The use of leverage by the strategy can substantially increase the market exposure (and market risk) to which the strategies’ investment portfolio may be subject. Availability of Suitable Investments. The business of identifying and structuring investments of the types contemplated by the strategy is competitive and involves a high degree of uncertainty. Furthermore, the availability of investment opportunities generally will be subject to market conditions and competition from other groups as well as, in some cases, the prevailing regulatory or political climate. Interest rates, general levels of economic activity, the price of securities, and participation by other investors in the financial markets may affect the value and number of investments made by the strategy or considered for prospective investment. Evergreen Investing Risk. An evergreen fund is an alternative investment fund that has an indefinite life span and continuously raises capital rather than having a predetermined fundraising period and lifecycle, as do traditional private equity or venture capital funds. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative Investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/ or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment. For a full list of risks, please see Important Information and Risk Factors
