CD Private Equity Fund II’s underlying investment vehicle has agreed to sell four mature private equity fund interests for approximately US$6.1 million. The sale is priced at 64% of reported NAV but could lead to a future distribution to CD2 unitholders.
- Four mature private equity fund interests to be sold for approximately US$6.1 million
- Around US$3.8 million expected from initial transfers in November 2026
- Sale price represents approximately 64% of reported 31 March 2026 NAV
- Portfolio exposure expected to fall from 22 to 10 underlying companies
- Future CD2 distribution remains subject to reserves, taxes and completion
US$6.1 Million Sale Targets Faster Liquidity
CD Private Equity Fund II (ASX:CD2) is trading uncertain future exits for cash, with its underlying investment vehicle agreeing to sell interests in four mature private equity funds for approximately US$6.1 million. The transaction gives the portfolio a clearer liquidity path, although it has been struck at a substantial discount to reported net asset value.
CD2 holds an 87.28% interest in US Select Private Opportunities Fund II LP, or LP2, whose general partner signed the binding purchase and sale agreement. LP2 is expected to receive about US$3.8 million when three transfers complete around 1 November 2026, with the remaining proceeds due when the fourth interest completes in early January 2027.
Discounted Sale Cuts Portfolio Exposure
The interests being sold are mature investments whose eventual realisations could otherwise take several years. The agreed price represents approximately 64% of the underlying funds’ reported NAV at 31 March 2026, though LP2 has since received distributions from several investments. Those distributions will be retained by LP2 and have reduced the cash consideration payable at completion.
The decision extends CD2’s recent focus on converting private equity holdings into distributable cash. Earlier this year, the fund reported a
Once all four transfers are complete, LP2 is expected to retain approximately US$7.2 million of portfolio value, excluding cash, across 10 underlying portfolio companies. That would reduce its exposure from 22 companies, concentrating the remaining portfolio while shrinking the pool of unrealised assets still awaiting exits.
CD2 Distribution Depends on Completion
Subject to completion, LP2 is expected to make a distribution to CD2 based on the fund’s economic interest in the transaction proceeds. The amount and timing are not yet specified: LP2 must first satisfy reserve and tax requirements associated with the realisations, and the transfers remain conditional on customary approvals, general partner approval and transfer documentation.
The trade-off is therefore plain. CD2 gains a defined route towards liquidity, but accepts a price well below the last reported NAV for the interests being sold. The next useful markers are completion of the November transfers, the January transaction and the size of any distribution that survives LP2’s reserves and tax obligations.
Bottom Line?
The sale could unlock another CD2 distribution, but investors still need completion, final proceeds and LP2’s reserve calculations before its cash impact becomes clear.
Questions in the middle?
- Will all four transfers complete on the proposed November and January timetable?
- How much of the US$6.1 million proceeds will remain available after LP2’s reserves and tax requirements?
- What valuation will CD2 assign to the 10-company portfolio that remains after the sale?