CD Private Equity Fund III Announces $0.12 Per Unit Distribution Following Portfolio Exits

CD Private Equity Fund III’s Capital Return Strategy Through Distributions

CD Private Equity Fund III has issued its latest distribution of $0.12 per unit, marking the third cash return to investors within a year. This distribution reflects the fund’s strategy to return capital through realisations of its underlying portfolio investments. Typical of mature private equity funds, CD3 is transitioning from deployment to monetisation, converting illiquid holdings into cash. K2 Asset Management highlighted that proceeds stemmed from recent realisations, including a full exit from an underlying manager, showcasing the fund’s active portfolio management.

Over the past twelve months, CD3 has returned $0.26 per unit in total distributions ($0.10 in September 2025, $0.04 in January 2026, and $0.12 in July 2026). For investors holding since inception, total distributions of $2.299 per unit exceed the initial $1.60 per unit investment, representing a 1.44 times return on capital from distributions alone, excluding any unrealised gains.

Cumulative Distributions Surpass Initial Investment by 44%

Since inception, unitholders have received $2.299 per unit in distributions, surpassing the original $1.60 per unit investment by approximately 44%. This metric underscores the fund’s success in creating value and returning capital in an orderly manner, consistent with its investment objectives as a maturing private equity vehicle.

The distribution pattern—from $0.10 per unit in September 2025, $0.04 in January 2026, to $0.12 in July 2026—reflects the opportunistic nature of private equity realisations. The recent $0.12 distribution, the largest in the last twelve months, may indicate increased realisation activity or a significant exit during the reporting period.

Full Exit from Underlying Manager Drives Latest Distribution

The July 2026 distribution is attributed to a complete exit from an underlying manager within the fund’s portfolio. This suggests CD3’s exposure to fund-of-funds or manager-of-managers structures, where investments are held in other vehicles rather than direct operating companies. The full exit signifies successful liquidation of this holding and conversion into distributable cash. Such exits often represent major portfolio events and can unlock substantial capital.

K2 Asset Management emphasized that it will continue to evaluate liquidity options across the remaining portfolio to maximise value and facilitate orderly capital returns. This indicates ongoing realisation efforts and potential future distributions as additional exits occur.

Distribution Timeline and Payout Frequency Over Past Year

Over the last twelve months, CD3 has maintained a steady distribution cadence with three payouts: $0.10 per unit in September 2025, $0.04 per unit in January 2026, and $0.12 per unit in July 2026. The variation in distribution amounts reflects the timing of realisations rather than a fixed schedule, characteristic of private equity funds distributing proceeds as they are realised.

The total $0.26 per unit distributed during this period highlights CD3’s active capital return profile. With cumulative distributions now exceeding the initial investment by 44%, investors can track the fund’s progress in returning capital. The upcoming payment is expected around 27 August 2026, allowing investors to plan cash flow accordingly.

K2 Asset Management’s Ongoing Portfolio Management and Liquidity Strategy

K2 Asset Management, as the responsible entity, remains committed to actively managing CD3’s portfolio. The fund will continue assessing liquidity options with a focus on maximising value and orderly capital returns. This disciplined approach aims to optimise exit timing and proceeds rather than pursuing rapid liquidation.

The continuation of regular distributions over the past year indicates an active pipeline of realisations. Investors may anticipate further announcements regarding significant exits or changes in distribution frequency as the fund advances toward its final realisation phase.

Unitholder Administrative Requirements and Registry Update Deadline

Unitholders are urged to update their payment details and tax file number (TFN) or Australian business number (ABN) with the unit registry, Boardroom Pty Ltd, before the record date of 6 August 2026. The ex-distribution date is 5 August 2026. Investors holding units as of the record date will be eligible for the $0.12 per unit distribution, payable on or around 27 August 2026.

For inquiries regarding investments, distributions, or registry details, unitholders can contact K2 Asset Management’s Investor Relations at [email protected] or +61 3 9691 6110. The fund’s 12-H form, containing detailed portfolio and financial information, will be available no earlier than 26 August 2026 on the fund’s website.

CD3’s Position Within K2 Asset Management’s Private Equity Fund Suite

CD Private Equity Fund III is part of K2 Asset Management’s range of investment vehicles. K2 Asset Management Ltd, holding AFSL 244 393 and ACN 085 445 094, serves as the fund’s responsible entity. CD3 is registered with ASIC under ARSN 612 132 813. The fund offers exposure to private equity through a fund-of-funds or manager-of-managers structure, as demonstrated by the recent full exit from an underlying manager.

Operating as an unlisted managed investment scheme, CD3 distributes capital as underlying investments are realised rather than paying regular income or dividends. Its portfolio typically includes later-stage private companies and private equity fund interests. The fund’s realisation-focused strategy aligns with private equity norms, where distributions are irregular and linked to exit events.

Tax Considerations and Upcoming 12-H Disclosure Document

The $0.12 per unit distribution carries tax implications for unitholders. Managed investment scheme distributions are generally taxable, and investors are reminded to ensure TFN or ABN registration with the unit registry to avoid withholding at the highest marginal tax rate. The announcement does not specify the distribution’s composition—whether income, capital gains, or return of capital—which affects tax treatment.

Detailed tax information will be provided in the 12-H form, scheduled for release no earlier than 26 August 2026. This document will include the fund’s financial position, portfolio details, unit valuations, and distribution breakdown. Investors and tax advisors should review it to assess tax liabilities accurately. Until then, investors may need to estimate tax impacts based on prior distributions and seek professional advice.

Outlook on Future Distributions and Portfolio Realisations

No specific guidance on future distribution timing or amounts was provided, reflecting the irregular nature of private equity realisations. However, K2 Asset Management’s commitment to ongoing liquidity assessments suggests an active realisation pipeline and potential for further distributions. The recent exits, including the full manager exit, indicate maturing portfolio positions approaching realisation.

Investors will likely monitor announcements for significant exits or changes in distribution patterns as indicators of progress toward the fund’s wind-down. With cumulative distributions exceeding the initial investment, questions remain about the fund’s remaining net asset value and the sufficiency of future distributions to fully realise holdings. The responsible entity’s focus on maximising value and orderly capital return suggests a balanced approach to exit timing.

Record Date, Ex-Distribution Date, and Payment Details for $0.12 Distribution

The ex-distribution date for the $0.12 per unit payout is 5 August 2026, with the record date on 6 August 2026. Investors holding units on the record date will receive the distribution, expected to be paid on or around 27 August 2026. This timeline aligns with standard managed fund settlement practices, allowing approximately three weeks for processing.

Unitholders should confirm their bank account, TFN, and ABN details with Boardroom Pty Ltd to ensure timely payment and avoid withholding tax. For assistance, the investor relations team at K2 Asset Management is reachable at [email protected] or +61 3 9691 6110. This distribution continues CD3’s commitment to returning capital as portfolio realisations occur.