CD PRIVATE EQUITY FUND II — Net Asset Value 2023

Jul 13, 2023

Monthly update – June 2023

CD Private Equity Fund II (ASX: CD2)

NTA per unit Gross assets (millions) Distributions per unit (percentage of initial investment) One month performance1,2 Annualised performance since inception (August 2012)1,2	NTA per unit Gross assets (millions) Distributions per unit (percentage of initial investment) One month performance1,2 Annualised performance since inception (August 2012)1,2	NTA per unit Gross assets (millions) Distributions per unit (percentage of initial investment) One month performance1,2 Annualised performance since inception (August 2012)1,2	NTA per unit Gross assets (millions) Distributions per unit (percentage of initial investment) One month performance1,2 Annualised performance since inception (August 2012)1,2	NTA per unit Gross assets (millions) Distributions per unit (percentage of initial investment) One month performance1,2 Annualised performance since inception (August 2012)1,2	NTA per unit Gross assets (millions) Distributions per unit (percentage of initial investment) One month performance1,2 Annualised performance since inception (August 2012)1,2
$1.57	$89.90	Last 12 months: 34 cents (21%)	Since inception: 206.5 cents (129%)	-2.5%	10.6%

Fund Update

The estimated unaudited net tangible asset value (NTA) after tax as at 30 June 2023 was $1.57[1,3] per unit (31 May 2023 was $1.61[1] per unit).

This net asset value movement recorded during the month was primarily a result of foreign exchange movements, with the Australian dollar strengthening by 2.4% during the period.

As has been previously announced, K2 Asset Management Ltd ( K2 ) has been appointed as Responsible Entity ( RE ) of CD2 effective 24 June 2023. K2 is pleased to release this announcement as RE for the Fund and look forward to continuing to work with Unitholders, ensuring open and transparent discussions regarding the Fund.

We would like to address Unitholder queries on the treatment of the Dominion Voting Systems settlement with Fox Corp as it applies to the CD2 NTA. As advised on 25 May 2023, the US Select Private Opportunities Fund II, L.P. ( LP ) received a net payment of approximately US$7m from the settlement.

Each month the Fund records its investment in the LP, in which the Fund has an 87.3% interest (held at fair value), against any changes in the Australian Unit Trust cash balances, and adjusts the valuations for foreign exchange movements. The LP adopts a similar fair value measurement basis to the Fund, based on the proportionate interest it holds in the most recent reported total net asset values of the respective investment funds.

These underlying investment funds typically invest in US unlisted equity investments with fair values determined periodically based on market or income-based valuation techniques, which may involve the use of unobservable inputs such as discount rate and earnings multiple, and which are reported to the LP after quarter end.

The Dominion payment is therefore not reflected in the NTA for the Fund until the fair value is updated and received by the underlying investment fund overseen by the investment manager.

If Unitholders have further questions regarding this or anything else, we welcome you to reach out to the Investor Relations team via email (cdfunds@k2am.com.au) or by calling +61 3 9691 6110.

CD2 Fund performance

1 Month 3 Months 6 Months 1 Year 3 Years p.a. 5 Years p.a. Since inception p.a.3	1 Month 3 Months 6 Months 1 Year 3 Years p.a. 5 Years p.a. Since inception p.a.3	1 Month 3 Months 6 Months 1 Year 3 Years p.a. 5 Years p.a. Since inception p.a.3	1 Month 3 Months 6 Months 1 Year 3 Years p.a. 5 Years p.a. Since inception p.a.3	1 Month 3 Months 6 Months 1 Year 3 Years p.a. 5 Years p.a. Since inception p.a.3	1 Month 3 Months 6 Months 1 Year 3 Years p.a. 5 Years p.a. Since inception p.a.3	1 Month 3 Months 6 Months 1 Year 3 Years p.a. 5 Years p.a. Since inception p.a.3	1 Month 3 Months 6 Months 1 Year 3 Years p.a. 5 Years p.a. Since inception p.a.3
NTA return1,2	-2.5%	-1.3%	-8.7%	-11.7%	10.1%	10.4%	10.6%

On an NTA/Internal Rate of Return (IRR) basis, CD2 has achieved a return of 11.2% per annum since inception.

ASX release date: 14 July 2023

Notes: Authorised for release by K2 Asset Management Ltd (ACN 085 445 094, AFSL 244 393), the responsible entity of CD Private Equity Fund II (Fund or CD2).

1. Source: E&P Investments Limited (for data before 24 June 2023) and K2 Asset Management Ltd (for data post 24 June 2023). The historical performance is not a guarantee of the future performance of the Fund;

2. Total returns are inclusive of distributions. NTA return is based on post tax NTA;

3. Based on estimated unaudited net tangible asset value before tax at 30 June 2023 of $1.71 per unit (31 May 2023 was $1.75).

Numbers may not sum due to rounding.

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