CD Private Equity Fund I (CD1) reported a 30.7% decrease in total revenue to $1,000,464 and a 43.1% drop in net operating profit to $730,728 for the year ended March 31, 2025. Basic and diluted earnings per unit decreased from 3.51 cents to 2.00 cents. Despite these declines, the fund distributed 13.5 cents per unit to unitholders on February 24, 2025, totaling $4.93 million. The fund’s net tangible assets per unit also decreased from $1.03 to $0.92.
The report highlights a rebound in the U.S. private equity (PE) market, characterized by increased deal value and strategic investment, though deal volume saw a modest decline. Investor appetite focused on resilient sectors like technology and healthcare, with megadeals and public-to-private transactions gaining traction. However, fundraising remained challenging due to LP caution. Geopolitical uncertainty, particularly widespread tariffs imposed in early 2025, introduced headwinds impacting exit plans and overall market uncertainty.
The Fund generated a total return of 2.9% on a post-tax NTA basis. The FY25 result included an $0.88 million fair value movement gain on its LP investment, encompassing a $1.47 million unrealized foreign currency translation gain, offset by a $0.59 million decline in underlying asset valuations. Since inception, the Fund has delivered a post-tax annual return of 11.3% p.a. and an IRR of 11.8% p.a., with a TVPI multiple of 2.42 times.
During FY25, the LP received notice of three underlying portfolio company sales: Quinoa Corporation, Novatech, and Senior Living. These realisations supported the distribution to unitholders. The fund closed the year with A$1.8 million in cash, alongside the Fund’s share in the LP cash balance being US$1.7 million. The Manager expects 35 – 50% of the portfolio value to be realised within the next 12 months. Already additional realisations post-balance date have substantiated this view.
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