CD Private Equity Fund I Announces $0.04 Per Unit Distribution as Total Returns Surpass Nearly Twice Initial Investment

Consistent Distribution Schedule Highlights Strong Capital Return Momentum Over 12 Months

Throughout the 2025–2026 period, CD Private Equity Fund I has maintained a steady distribution cadence, declaring payments in September 2025, January 2026, and most recently in July 2026. The sequence of distributions—$0.08, $0.05, and now $0.04 per unit—reflects ongoing portfolio realisations and the fund’s dedication to providing regular capital returns. This trio of distributions within a year underscores active portfolio management and the presence of liquidity events from underlying investments.

K2 Asset Management, as the responsible entity, continues to explore liquidity avenues aimed at maximising value realisations while facilitating orderly capital returns. The decreasing distribution amounts over these periods likely correspond to the timing and nature of specific exit transactions rather than indicating a decline in fund performance. The management team remains focused on identifying and executing monetisation opportunities within the private equity portfolio.

Cumulative Distribution Returns Nearly Double Initial Investment for Unitholders

Since its inception, unitholders retaining their units have received cumulative distributions totaling $3.125 per unit against an initial investment of $1.60 per unit. This equates to a 1.95 times return purely from cash distributions, excluding any unrealised changes in the net asset value of remaining holdings. This figure demonstrates the fund’s capacity to generate tangible cash returns throughout its operational history.

The nearly twofold return through distributions highlights the portfolio’s composition and the timing of investment realisations. While this metric provides a concrete measure of capital returned, it does not account for unrealised gains or losses on the remaining portfolio. The disclosure of this return multiple signals confidence in the fund’s track record of delivering distributable cash via successful exits.

K2 Asset Management’s Regulatory Role and Fund Governance

K2 Asset Management Ltd serves as the responsible entity and manager of CD Private Equity Fund I, holding Australian Financial Services Licence (AFSL) 244393 and registered with ACN 085 445 094. The fund is registered under ARSN 158 625 284. As responsible entity, K2 Asset Management is fiduciary to unitholders, overseeing investment decisions, portfolio management, and capital distributions in compliance with the fund’s constitution and Australian financial regulations. This framework ensures adherence to securities laws and managed investment scheme requirements.

The announcement was authorised by K2 Asset Management Ltd in its responsible entity capacity, confirming all public disclosures flow through this regulated body. Boardroom Pty Ltd manages the fund’s registry, maintaining unitholder records and processing distributions. Unitholders are advised to keep payment details and tax file number or Australian business number information updated with Boardroom to facilitate timely distribution receipt. This administrative structure provides clear contact points for registry and investor relations.

Distribution Timeline: Ex-Date, Record Date, and Payment Schedule

The ex-distribution date for the $0.04 per unit payment is Wednesday, 5 August 2026, with the record date on Thursday, 6 August 2026. Unitholders on the register as of the record date will be eligible for the distribution, expected to be paid on or about Thursday, 27 August 2026. These dates align with standard Australian managed fund distribution practices, allowing for settlement of unit transfers prior to record date.

The statutory 12-H distribution statement detailing the distribution’s composition and tax information will be available no earlier than 26 August 2026 on the fund’s website. Unitholders should review this document for specifics on capital gains, income, or return of capital components. The scheduled payment date provides clarity for unitholders’ cash flow planning.

Strategic Portfolio Liquidity Management Targets Value Maximisation and Orderly Capital Returns

K2 Asset Management has reiterated its commitment to actively assess liquidity options across the portfolio, focusing on maximising value realisations and facilitating orderly capital returns. This measured approach prioritises optimising exit timing and pricing over forced liquidation, balancing unitholder interests.

The portfolio primarily consists of private equity investments, including equity stakes in private companies or leveraged buyout targets with multi-year horizons. Liquidity events may arise from secondary sales, management buyouts, debt refinancing, or strategic acquisitions by larger entities. The ongoing evaluation of these opportunities reflects the dynamic nature of private equity fund management, where timely exits are essential for value creation. No specific pipeline of pending realisations was disclosed, underscoring a continuous monitoring strategy.

Distribution History Reflects Strong Cash Generation Capacity

With four distributions declared in the past twelve months—three within the last year—the fund demonstrates its ability to generate sufficient distributable cash from portfolio activities to support regular payments. The cumulative $3.125 per unit distributed relative to the original $1.60 investment confirms substantial capital return through cash distributions alone, a key performance indicator for unitholders.

The recent decline in distribution amounts does not necessarily signal weakening performance, as private equity distributions are episodic and tied to realisation timing rather than steady cash flows. Details on the distribution composition—realised gains versus return of capital—will be available in the forthcoming 12-H statement. This transparency aids investors in assessing the fund’s realisation execution over time.

Unitholder Support and Registry Maintenance

Unitholders are encouraged to verify that their payment information, tax file number, and Australian business number are current with Boardroom Pty Ltd, the unit registry operator. Accurate records ensure timely receipt of distributions and correct tax documentation. Investor Relations can be contacted at [email protected] or +61 3 9691 6110 for queries related to distributions, registry, or fund strategy.

The fund’s registered office is located at Level 44, 101 Collins Street, Melbourne VIC 3000. The website www.cdfunds.com.au serves as the primary channel for regulatory announcements and fund documents, including the upcoming 12-H statement. This multi-channel communication approach facilitates unitholder engagement and efficient administration.

Fund Structure and Investment Strategy Overview

CD Private Equity Fund I operates as a registered managed investment scheme under Australian financial services regulation, with K2 Asset Management as the responsible entity. The fund pools capital from multiple unitholders to invest in a diversified private equity portfolio, typically involving equity or equity-linked stakes in private companies or leveraged acquisition vehicles. The investment horizon is medium to long term, targeting capital appreciation through operational improvements, growth, or strategic repositioning, with realisations via secondary sales, strategic acquisitions, or public listings.

The fund’s distribution record indicates a portfolio that has generated cumulative proceeds exceeding initial capital through realisations. Distribution timing reflects the discretionary nature of private equity payouts, contingent on exit success rather than regular cash flows. The responsible entity’s ongoing liquidity assessments demonstrate active portfolio management and deal sourcing. Prospective or current investors should consider risks such as concentration, illiquidity of unrealised holdings, and market sensitivity affecting valuations and exit timing.

Outlook and Continued Capital Return Commitment

The announcement does not specify future distribution timing or amounts, consistent with private equity funds where payouts depend on realisation activity. However, the responsible entity’s commitment to ongoing liquidity assessments indicates intent to pursue exit opportunities as they emerge. Unitholders can expect distributions to continue as portfolio companies are monetised, though amounts and timing remain variable based on market and portfolio conditions.

The fund’s maturity, evidenced by cumulative distributions surpassing original investment, suggests many holdings are in realisation phases. Future distributions will depend on buyer availability and valuation conditions. Unitholders should monitor fund announcements for updates on major realisations or strategy changes. The forthcoming 12-H statement, expected on or after 26 August 2026, will provide detailed insights into the July 2026 distribution and the portfolio’s liquidity outlook.