The Company was 88.8% invested at the end of the second quarter 2008. It has made commitments to sixteen underlying private equity funds and underlying specialty funds amounting to approximately US$224 million and the total amount that has been drawn-down on the commitments made is approximately US$59 million.
At 30 June 2008, the Company’s commitments to private equity and specialty funds accounted for 85.3%of its assets, representing an over-commitment of 1.22X, based on the Company’s commitments as a share of total net assets. Any over-commitment may be managed through the Company’s cash holdings, through redemptions from the Transitional portfolio and through the use of gearing. The Company may gear by up to 25%of its net asset value, but has not employed this facility and had no debt at 30 June 2008.
The investment process is systematic and disciplined. Due diligence is at its heart and around 3-4 months are typically spent analysing a potential manager, a process which includes a number of on-site visits with that manager. The process culminates in the provision of a detailed report that is then presented to and discussed at Bramdean’s Investment Committee, where a selection decision will be made on all private equity funds, specialty funds, and transitional investments. That Committee has to approve an investment unanimously before it can proceed. Where required, Bramdean will also conduct legal diligence.Ongoing monitoring is similarly robust and includes regular reviews of market conditions and their potential effect on the underlying funds and any direct private equity investments. In response to the conclusions drawn from this process, the Investment Committee will decide whether or not to retain an investment.