During June 2019, the opportunity presented itself to invest in the VC2017 Fund.

As you would expect, this venture capital fund was started in 2017 with cash.

The biggest risks with venture capital funds include:

• Finding assets to invest in;
• The performance of investments;
• Time (how long does it take for the investment to execute its stated strategy).

When the opportunity arose via an existing unit holder in the VC2017 fund wanting to exit & no other existing unit holders took the opportunity to increase their investment, the units were offered to new investors.

Our view was that the VC2017 Fund had been significantly de-risked as all underlying investments appeared to be performing above base case expectations.

At the time, the last reported unit price of VC2017 was $1.1794 (as at December 2018).

We bid for all the available units at a price of $1.08 per unit.

We viewed the 8.4% discount we submitted our bid at as a fair liquidity discount.

We were successful with our bid at that price.

Rolling forward to August 2019 when the June 2019 valuation update was reported, the VC2017 Fund price per unit had increased to $1.3772.

This was an increase of 27.5% over the price we paid in June.

We are still positive on the outlook for the underlying assets in VC2017 Fund.

As per the unit holder agreement, if there are any other planned sales by other investors, all unit holders need to be informed.

At that time, depending on price, we would look to increase our exposure.