CD PRIVATE EQUITY FUND II — Annual Report 2015

May 26, 2015

US Select Private Opportunities Fund II

ABN 14 157 294 349

Appendix 4E: Preliminary Final Report

For the year ended 31 March 2015

(The previous corresponding period is the period from 1 April 2014 to 31 March 2014)

Results for announcement to the market

	Year ended 31 March 2015 ($)	Year ended 31 March 2014 ($)	Change from previous period ($)	Change from previous period (%)
Revenue from ordinary activities	$168,852	$132,312	Up $36,540	Up 28%
Profit from ordinary activities before tax attributable to unitholders	$27,298,729	$5,191,982	Up $22,106,747	Up 426%
Profit from ordinary activities after tax attributable to unitholders	$27,298,729	$5,191,982	Up $22,106,747	Up 426%
Net profit from ordinary activities attributable to unitholders	$27,298,729	$5,191,982	Up $22,106,747	Up 426%
Basic earnings per unit	54.70 cents	13.70 cents	Up 41.00 cents	Up 299%
Diluted earnings per unit	54.70 cents	13.70 cents	Up 41.00 cents	Up 299%

No distributions were paid or declared during the reporting period.

Commentary on results

US Select Private Opportunities Fund II ( the Fund ) generated strong results for the year ended 31 March 2015, with total comprehensive income for the year of $27.3 million, or 54.70 cents per unit. This strong performance resulted in the Fund’s net assets increasing from $1.67 per unit as at 31 March 2014 to $2.17 per unit as at 31 March 2015, representing a gain of 30% for the year.

These strong results were driven by significant progress made across the Fund’s underlying private investment funds ($14.6 million) and foreign exchange gains relating to the translation of US-denominated cash funds held during the year ($13.2 million).

As at financial year end, through US Select Private Opportunities Fund II, L.P. ( LP ), the Fund was invested in 12 highly attractive US small-to-medium-sized private investment funds for a total consideration of US$98.0 million, with the Fund’s proportionate share being approximately US$85.5 million (an 87.3% share). Of the capital committed, US$44.9 million, or 47.3% has now been called, with 66.8% of the called capital invested with the underlying managers and the remainder either held as cash or used to cover expenses of the LP.

During FY15, the LP called US$24.9 million of capital as the managers of the underlying funds made 23 new investments, taking the Fund’s underlying portfolio holdings to 50 companies. The underlying managers of the Fund are now half way through their investing stage, and their current portfolio companies are entering their growth stage.

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Results for announcement to the market (continued)

In July 2014, the Fund successfully closed a capital raising for the Fund, raising $28.7 million, which led to a US$25.0 million additional commitment to the LP from the Fund and an additional US$2 million from Cordish Private Ventures.

Explanation of revenue

Revenue from ordinary activities of the Fund for the year ended 31 March 2015 consists entirely of the Fund’s investment activities and is made up as follows:

investment activities and is made up as follows:
	Year ended 31 March 2015 ($)	Year to 31 March 2014 ($)
Interest income	$168,852	$132,312
Total	$168,852	$132,312

Total comprehensive income for the year was $27,298,729 (2014: $5,191,982). The key component of this result included a foreign exchange gain of $13,222,458 (2014: $5,429,916) relating to translation of US denominated cash funds held during the year, and a $14,615,274 fair value movement gain (2014: $ 122,503) incurred on the Fund’s investment in the LP during the year. As at 31 March 2015, the Fund had net assets of $119,585,187 (2014: $63,620,863), representing $2.17 per unit (2014: $1.67 per unit).

Matters subsequent to the end of the financial year

There has not arisen in the interval between the balance date and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Responsible Entity of the Fund, to affect significantly the operations of the Fund, the results of those operations, or the state of affairs of the Fund, in future financial years.

Other information

Refer to the Fund’s Annual Financial Report for the year ended 31 March 2015 for a Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial Position, Statement of Cash Flows and Statement of Changes in Equity and all relevant notes to the financial statements.

This report is based on the Annual Financial Report which has been subject to audit by the Independent Auditor.

All the documents comprise the information required by Listing Rule 4.3A.

Attachments forming part of Appendix 4E

Annual Financial Report, including Directors’ Report and Independent Auditor’s Report

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Alex MacLachlan

Chairman of the Responsible Entity 27 May 2015

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