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CD PRIVATE EQUITY FUND II — Interim / Quarterly Report 2017
Nov 9, 2017
64627_rns_2017-11-09_b204acae-e3b8-4429-8ca1-a8e493f51ca5.pdf
Interim / Quarterly Report
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Quarterly update for period ending 30 September 2017
About the US Select Private
Opportunities Fund Series
The US Select Private Opportunities Fund is a private equity fund focused on US small-cap private equity funds and direct company investments. The Fund is managed by a joint venture between the private investment arm of the Cordish family of Baltimore, Maryland, and Walsh & Company.
The joint venture is anchored in the belief that smaller and more nimble private equity funds materially outperform larger private equity funds, and the Fund series was formed to provide investors with a platform to invest in a portfolio of small to mid-market private equity funds and companies, a strategy that is typically beyond the reach of all but the largest endowments and family offices.
The Fund series provides investors with the opportunity to avail themselves of the Cordish Family Office’s experience and network in investing in specialist small to mid-market private equity funds and direct equity investments in the US and to invest side-by-side and on equal terms with the Cordish Family in these compelling opportunities.
Investment objectives
The General Partner ( GP ) and Investment Manager will seek to meet the Fund’s aim to provide Unitholders with:
a) exposure to a portfolio of investments in small and mid-market private investment funds and privately held companies predominantly focused in the US; and
b) capital growth over a five-to-ten-year investment horizon.
Fund facts
KEY FUND DETAILS
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ASX ticker USG
Inception April 2013
Sector Listed investment trust
Currency AUD (unhedged)
Pre-tax NTA $2.05
Post-tax NTA $2.03
Market capitalisation $117.0 million
Units outstanding 55.2 million
Number of managers 12
ONGOING FEES
Investment Manager fee 2% pa [2]
Administration & Responsible Entity fee 0.33% pa [2]
Performance fee n/a
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For more information on fees and costs associated with the Fund, please refer to Section 7 of the Product Disclosure Statement (PDS) dated 22 February 2013.
DISTRIBUTIONS ANNOUNCED[3] (LAST 12 MONTHS) May 2017 10 cents per unit
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Key investment team members Jonathan Jonathan Whitney Cordish Sinex Voute Chairman of the Principal, Cordish Principal, Cordish Advisory Board Private Ventures Dixon Private Equity Partners
Fund performance
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SINCE
3 MONTH 6 MONTH 1 YEAR 2 YEARS PA 3 YEARS PA
INCEPTION PA [5]
Unit price return [4] -1.4% 2.5% 4.0% -3.5% 8.3% 9.1%
NTA return [1,4] 0.0% 0.9% 3.4% -2.5% 8.7% 9.5%
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Notes:
- Source: Walsh & Company Investments Limited. Historical performance is not a guarantee of the future performance of the Fund. 2. Administration and Responsible Entity fee pre-GST. No GST is applicable to Investment Manager fee. 3. Payment of distributions will likely be upon the realisation of underlying investments and occur intermittently. 4. Total returns are inclusive of distributions. Net return is net of fees and costs. 5. Inception date April 2013.
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Want to know more? uspof.com.au
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Underlying Fund Activity
Blue Point Capital Partners III, L.P. Blue Point sold Ortholite, distributing $1.7 million to the LP.
Blue Point invested in SASE, a leading manufacturer and supplier of equipment and consumables used in the concrete polishing industry. www.sasecompany.com
No material Chicago Pacific Founders Fund, L.P. investment activity during quarter.
DFW Capital Partners IV, L.P. No material investment activity during quarter.
High Road Capital Partners Fund II, L.P.
High Road invested in Storage Battery Systems, a leading assembler and value-added distributor of branded, rechargeable industrial battery solutions and test equipment for motive, stationary and standby power applications. www.sbsbattery.com
Main Post Growth Capital, L.P. No material investment
activity during quarter.
NMS Fund II, L.P. NMS invested in CorDental Group, a dental support organization that provides business support services to affiliated dental practices across the MidAtlantic, Midwestern, and Southeastern United States. www. cordentalgroup.com
RFE Investment Partners VIII, L.P. No material investment
activity during the quarter.
Staple Street Capital II, L.P. No material investment activity during the quarter.
Tengram Capital Partners Gen2 Fund No material
investment activity during the quarter.
Tower Arch Partners I, L.P. No material investment activity during the quarter.
Trive Capital Fund I, L.P. No material investment activity during the quarter.
US Select Direct Private Equity (US), L.P. No material investment activity during the quarter.
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LP commitments to underlying managers (US$98.0m)
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US Select Blue Point
Direct CPF
$5.0
$15.0
$7.5 DFW
$5.0
Trive
$10.0 High Road
$7.5
$8.0 $7.5
Tower Arch Main Post
$6.5
$10.0
$8.0 $8.0 NMS
Tengram
Staple Street RFE
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Note: The Fund has an 87.3% interest in the LP, Cordish Private Ventures and US Select Private Opportunities Fund II GP, LLC contributed the remaining amount based on their proportional shares. Numbers may not add due to rounding.
Risks
Like all investments, an investment in the Fund carries risks which may result in the loss of income or principal invested. In addition to the general risks of investing, specific risks associated with investing in the Fund include, but are not limited to, private investments risk, illiquidity risk and foreign exchange risk. For further information about the risks of investing in the product see Section 9 of the Product Disclosure Statement dated 22 February 2013.
About Walsh & Company
The Walsh & Company Group is a Sydney-based specialist global fund manager co-founded in 2007 by Max Walsh. The Company has a circa $5 billion of investor assets under management across global equities, residential and commercial property, private equity, fixed income and sustainable and social investments.
It provides investors access to unique investment strategies not readily accessible to investors and focus on building high quality, diversified portfolios.
Walsh & Company Investments Limited is the Responsible Entity of the Fund and is a wholly-owned subsidiary of Walsh & Company Group.
Fund contacts
Adam Coughlan - Head of Distribution T: (02) 8662 9792
NSW/WA
Emmanuel Vergara - Key Account Manager T: (02) 9432 3023
VIC/TAS/SA
Charlie Wapshott - Key Account Manager T: (03) 9411 4066
NSW/QLD
Reuban Siva - Business Development Manager T: (02) 8662 9790
Important information
This Quarterly Update ( Update ) has been prepared by Walsh & Company Investments Limited as Responsible Entity (ACN 152 367 649, AFSL 410 443) of US Select Private Opportunities Fund II ( Fund ). An investment in the Fund is subject to various risks, many of which are beyond the control of the Investment Manager and the Fund. The past performance of the Fund is not a guarantee of the future performance of the Fund. This Update contains statements, opinions, projections, forecasts and other material ( forward looking statements ), based on various assumptions. Those assumptions may or may not prove to be correct. None of the Responsible Entity and the Fund, their officers, employees, agents, analysts nor any other person named in this Update makes any representation as to the accuracy or likelihood of fulfilment of the forward-looking statements or any of the assumptions upon which they are based. This Update may contain general advice. Any general advice provided has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, you should consider the appropriateness of the advice with regard to your objectives, financial situation and needs, and consider obtaining advice from a financial advisor. You should obtain a copy of the relevant PDS or offer document before making any decisions to purchase the product.
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Want to know more? uspof.com.au
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