CD Private Equity Fund II Boosts Returns with Early $0.12 Per Unit Distribution
CD Private Equity Fund II announces an early distribution of $0.12 per unit, reflecting strong portfolio exits and delivering a 1.62x return since inception.
- Early distribution of $0.12 per unit announced
- Total distributions since inception reach $2.59 per unit
- Represents a 1.62 times return on initial $1.60 investment
- Distribution follows successful portfolio realisations in early 2025
- Next payment expected around 17 June 2025
Strong Portfolio Performance Drives Early Distribution
CD Private Equity Fund II (ASX: CD2) has declared a distribution of $0.12 per unit, payable around 17 June 2025, ahead of its usual six-monthly schedule. This move follows a series of successful portfolio company realisations in the first four months of the year, prompting the fund’s responsible entity, K2 Asset Management Ltd, to return excess capital to unitholders sooner than planned.
Impressive Returns Since Inception
Since inception, unitholders have received total distributions amounting to $2.59 per unit, which translates to a 1.62 times return on the initial $1.60 investment. This strong performance underscores the fund’s ability to generate value through its private equity holdings, with previous distributions of $0.07 per unit in July 2024 and $0.09 per unit in January 2025 marking a steady upward trend in returns.
Looking Ahead and Investor Considerations
The fund encourages unitholders to verify their payment details and tax file numbers with the unit registry, Boardroom Pty Ltd, ahead of the record date on 19 May 2025 to ensure smooth distribution payments. The forthcoming 12-H report, expected to be available on the fund’s website from 17 June 2025, will provide further insights into the fund’s financial position and portfolio performance.
While the early distribution signals confidence in the fund’s recent realisations, investors will be watching closely for future updates to gauge whether this momentum can be sustained amid evolving market conditions.
Bottom Line?
CD Private Equity Fund II’s early distribution highlights strong recent gains but raises questions about the sustainability of returns going forward.
Questions in the middle?
- What specific portfolio companies drove the recent realisations?
- Will the fund maintain or increase distribution frequency beyond the usual cycle?
- How might market conditions impact future portfolio exits and returns?
