CD Private Equity Fund Insights

Summary : With all of the recent machinations, I've decided to maintain a single blog post listing all of the firms with an interest in the CD Funds. There are various intentions: from passively riding the discount opportunity to active interest in clipping some part of the ticket. My main motivation in informing CD Fund shareholders is that they actively organise and advocate for their own interests: such as blocking adverse restructures (e.g. E&P's attempt to convert to an evergreen mashup fund); seeking mergers/exits at fair but not desperate prices (e.g. Pengana's PE1 proposals); extracting timely concessions (e.g. from K2 Asset Management in taking over as responsible entity); or encouraging institutional owners (e.g. WAM) to build stakes and speed up divestment and distributions. New Site : I now run a site dedicated to eliminating almost all ASX Closed End Funds. I maintain a post on the CD Funds on that site. See: >  Captive Capital Patience and vigilance rem

Summary : On 9 June 2023, a Wilson Asset Management fund - WAM Strategic Value - posted a media release advising it is voting No to the proposal for KAM to take over as responsible entity of the CD Funds. WAR disclosed it owned CD1, CD2 and CD3 and wants divestment and return of capital expedited. In this post, I provide further details of WAR's CD Fund holdings and discuss WAM's options and possible intentions regarding the CD Funds. If WAM is playing chess; who is playing checkers?

Summary : On 15 May 2023, E&P released ASX announcements for all three CD funds of a proposal to transition its responsible entity role to K2 Asset Management (KAM). E&P's many failures to act in investor's interests have been exposed on this blog and in the media. In their haste to dispatch E&P, CD Fund investors may consider almost any alternative as better. However, KAM hasn't explained how it would be better serving CD Fund investor interests (expediting distributions and realisation via merger or secondary sales). In this post, I detailed several reasons why CD Fund investors should default to voting NO to the Proposal for KAM to take over. Update 19 June : KAM was voted in as RE for all CD Funds. I've updated this post with the commitments it's made in relation to the vote. Don't let E&P burn investors one last time on the way out!