CD PRIVATE EQUITY FUND I — Net Asset Value 2013

Aug 14, 2013

14 August 2013

US Select Private Opportunities Fund (Fund)

ASX: USF

NTA at 31 July 2013 & Fund Update

NTA update

The estimated unaudited net tangible asset value before withholding tax on unpaid distributions at 31 July 2013 was $1.71* per Unit (30 June 2013 was $1.69 per Unit).

Fund update

New commitments

The Fund is pleased to announce US Select Private Opportunities Fund, LP ( LP ) has secured two new investments.

The first commitment is a US$5 million investment in DFW Capital Partners IV, LP ( DFW IV ), a private equity fund that invests in lower middle market healthcare, business services and industrial services companies that are undergoing ownership transactions. See Appendix 1 for further information.

The second commitment is a US$2 million investment in Fort Point Capital’s newly established fund, FPC Small Cap Fund I, LP ( FPC I ). Fort Point Capital seeks to invest in lower middle market service-oriented companies in the US and Canada. See Appendix 2 for further information.

The LP has secured eight investments for a total consideration of approximately US$70 million, representing 100% of total capital.

Capital calls

US Select Private Opportunities Fund, LP ( LP ) made a capital call of US$5 million to fund investment and operating expenses.

The LP had called US$22.5 million (or 32.3% of capital committed). The Fund’s proportionate share is approximately US$19.2 million (an 85.5% share).

Drawdowns

During July, the LP received drawdown requests from Trivest Fund V, LP ( Trivest ), Encore Capital Partners III, LP ( Encore ), KarpReilly Capital Partners II, LP ( KarpReilly ) and US Select Direct Private Equity (US), LP for a total consideration of approximately US$2.2 million.

*Source: Dixon Advisory & Superannuation Services Limited – historical performance is not a guarantee of the future performance of the Fund

The US Select Private Opportunities Fund was the first Australian-listed fund with a primary strategy of investing in US small-to-mid-market private investment funds, adopting a fund-of-funds investment strategy.

Trivest’s drawdown is to finance the acquisition of North Star Seafood, LLC ( North Star ). Founded in 1992, North Star, based in Pompano Beach, Florida, is a leading distributor of fresh and frozen seafood products throughout the Southeastern United States and the Caribbean.

At 31 July 2013, the LP had received net drawdown requests from underlying investments of approximately US$13.1 million, or 18.8% of total LP committed funds.

For more information, contact:

Alex MacLachlan 1300 454 801

APPENDIX 1: DFW Capital Partners IV, LP

DFW Capital Partners IV, LP ( DFW IV ) has been established by DFW Capital Partners ( DFW ) to raise up to US$175 million in capital commitments to invest in lower middle market healthcare, business services and industrial services companies that are undergoing ownership transitions. DFW was formed in Teaneck, New Jersey in 1983 and is currently led by Keith Pennell and four other managing directors who have all worked together in some capacity for the past 10 years.

DFW’s investment strategy is to generate significant long-term capital appreciation by building leading companies in select, high growth service sectors primarily located in the mid-Atlantic and Eastern regions of the US. The firm focuses exclusively on control investments in lower middle market companies with US$10 million or less of EBITDA, which DFW believes can benefit from its proven ability to institute the people and processes needed to unlock growth. DFW seeks to acquire lower middle-market service companies at reasonable multiples that are undergoing a significant strategic or structural change where its proven value creation blueprint can transition, professionalise and build such companies to achieve higher revenue and EBITDA growth.

DFW IV began investing in early 2012 and has already completed two control investments; Information Innovators Inc. and Covenant Surgical Partners.

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Information Innovators Inc. is an enterprise technology services contractor for key federal agencies of the US government, focused on managed IT services, network operations, data centre migration and operations, and mission-critical systems administration across both civilian and military agencies.

Investment Date: March, 2012 Headquarters: Springfield, Virginia Website: http://www.iiinfo.com/

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Covenant Surgical Partners is an acquirer and operator of single and limited specialty ambulatory surgery centres, with geographic diversity and an emphasis on gastroenterology, ophthalmology, and interventional pain management.

Investment Date: January, 2013 Headquarters: Nashville, Tennessee Website: http://www.covenantsurgicalpartners.com/

APPENDIX 2: FPC Small Cap Fund I, LP

The LP has the opportunity to partner with Fort Point Capital, LLC ( Fort Point ) via a commitment to FPC Small Cap Fund I, LP ( FPC Fund ). Fort Point is raising capital to invest in lower middle market service-oriented companies in the US and Canada, typically with US$3 to US$10 million of EBITDA at acquisition. Fort Point is led by Brooke Ablon and Paul Lipson ( Principals ) who have considerable private equity experience and a demonstrated track record.

Consistent with the Principals’ previous experience, Fort Point’s investment focus is centred on service-oriented business models. Fort Point believes these companies are more likely to possess sustainable competitive advantages which lead to critical investment characteristics such as growth, high margins, stable customer relationships, and strong and predictable cash flow.

Fort Point seeks control acquisitions of lower middle market companies that will exhibit the following characteristics:

• Niche market leadership, with potential to grow into a broader market leader

• Strong management either in place or identified

• Sticky customer relationships as indicated by a stable and diversified customer base

• Identifiable organic growth and/or add-on acquisition opportunities

• Defensible market position as indicated by strong margins (EBITDA margins greater than 10%)

• Strong cash flow characteristics, such as low working capital requirements and low maintenance capital needs

• Relative value bias to provide a margin of safety for investment

• Conservative use of leverage so as not to constrain future growth

• Identifiable exit opportunities.

From a sourcing perspective, Fort Point proactively focuses on less competitive opportunities, using theme-based, proprietary research designed to identify growing businesses in targeted industries, as well as a systematic direct calling effort focused on the small business broker network, accountants, attorneys, and operators. The Principals efforts are enhanced by a Management Advisory Board, primarily consisting of the Principals’ previous portfolio company CEOs as well as industry specialists with whom they have worked in the past. These individuals provide additional personal and professional networks that augment investment origination.