Conversus Capital, L.P. (Euronext Amsterdam: CCAP) ("Conversus" or
the "Company"), a permanent capital vehicle designed to offer its
unitholders long-term capital appreciation through a high-quality,
seasoned portfolio of private equity interests, today reported its
estimated portfolio net asset value (NAV) of $2,048.5 million, or
$27.95 per unit, as of December 31, 2007. This represents an increase
in estimated portfolio NAV per unit of approximately 11.8% since
Conversus´ initial offering in July 2007 and is a decrease in NAV per
unit of $0.01 since November 30, 2007. The NAV per unit as of December
31, 2007 is net of a $0.125 per unit distribution paid on December 17,
2007, which represents an approximate 2.0% dividend yield on an
annualized basis. On a pro-forma basis taking into account the
distribution, NAV per unit would have been $28.07 as of December 31,
2007 which represents a slight increase over NAV per unit from the
prior month.
"I am pleased to report that in the month of December the value of
our portfolio continued to increase on a gross basis, before
accounting for the distribution paid during the month," commented Bob
Long, President and CEO of Conversus Asset Management, LLC. "The
benefits of our mature, diversified portfolio overcame the negative
impact of public markets on our NAV. Additionally, we closed on our
first secondary portfolio purchase and continued to execute our
strategy of increasing allocations outside the U.S. through
commitments to top-tier managers."
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Net Asset Value Estimate as of December 31, 2007
(Amounts are unaudited and subject to change)
(in millions except per unit data)
Dec. 31 Nov. 30 % Change
--------- --------- ---------
Estimated Net Asset Value of Investments $2,043.1 $2,054.5 (0.6)
Cash and Cash Equivalents 44.1 34.4 28.2
Net Other Assets (Liabilities) (38.7) (33.7) 14.8
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Estimated Portfolio Net Asset Value $2,048.5 $2,055.2 (0.3)
=============================
Common Units Outstanding 73.3 73.5 (0.3)
Estimated Net Asset Value per Unit $ 27.95 $ 27.96 (0.0)
Note: The performance allocation due to the asset manager is accrued
in the third month of each quarter to the extent it is earned.
*T
Conversus carries its investments on its books at fair value in
accordance with generally accepted accounting principles in the United
States (GAAP). Conversus uses the best information it has available to
estimate fair value. Fair value for private equity interests is based
on the most recent financial information provided by the fund
managers, adjusted for subsequent transactions, such as calls or
distributions, as well as other information judged to be reliable that
indicates valuation changes, including realizations and other
portfolio company events. The value of any public security known to be
owned by the funds based on the most recent information reported to us
by the fund managers has been marked to market as of December 31, 2007
and a discount has been applied to such securities based on an
estimate of the discount applied by the fund managers in calculating
NAV.
Conversus will issue quarterly financial reports as of March 31,
June 30 and September 30 as well as an annual financial report as of
December 31 of each year. These reports will include financial
statements prepared in accordance with GAAP. Conversus is required to
consider, and will consider, all known material information in
preparing such financial statements, including information that may
become known subsequent to the issuance of each monthly report.
Accordingly, amounts included in the quarterly and annual financial
statements may differ from amounts included in the monthly NAV
reports.
Conversus will update its December 31, 2007 estimated NAV in its
annual financial report to be filed in April 2008. The updated NAV
estimate will reflect the financial information provided by the fund
managers for the period ended December 31, to the extent available. We
expect the revised NAV to be a more current and accurate reflection of
the estimated portfolio value as of December 31, 2007, and the updated
NAV could vary significantly from the amount reported today.
Investment Activity Update
During the month of December 2007, Conversus closed three primary
fund commitments totaling $28.2 million and closed on its first
secondary portfolio of funds, which was purchased at a discount to
NAV. The new primary fund commitments that closed included:
-- Asia Alternatives Capital Partners II, L.P.;
-- Bruckmann, Rosser, Sherrill & Co III, L.P.; and
-- Index Ventures Growth I, L.P.
In early January, Conversus closed on an additional secondary fund
portfolio, also purchased at a discount to NAV. The details of this
purchase will be disclosed in subsequent filings, to the extent
permitted by the relevant parties.
For a detailed breakdown of Conversus´ Private Equity Portfolio as
of December 31, 2007, please visit the Investor Relations portion of
the Company´s website at www.conversus.com to view Reports and
Financial Statements and Investment Information.
Liquidity Enhancement Activity
During the month of December 2007, Conversus began executing
transactions in its own units under a Liquidity Enhancement Agreement
as described in a press release on November 29, 2007. For the month of
December, a total of 202,055 units were purchased pursuant to the
Liquidity Enhancement Agreement at a total purchase price of
approximately $4.84 million, or an average price per unit of
approximately $23.93. This represents a 14.4% discount to the
estimated NAV of $27.95 per unit as of December 31, 2007.
About Conversus Capital
Conversus Capital, L.P. (Euronext: CCAP) ("Conversus") is a
permanent capital vehicle designed to offer its unitholders long-term
capital appreciation through a portfolio of high-quality, seasoned
private equity interests. Conversus provides immediate access to a
diversified portfolio of private equity funds. Conversus will reinvest
distributions from its current investments in primary fund
commitments, secondary fund purchases and direct co-investments.
Conversus Asset Management, LLC ("CAM"), an independent asset manager,
implements Conversus´ investment policies and carries out the day to
day operations of Conversus pursuant to a services agreement. CAM
leverages the platforms of Bank of America and Oak Hill, its primary
owners, in sourcing investments for the benefit of Conversus.
Legal Disclaimer
These materials are not an offer for sale of securities in the
United States. Securities may not be sold in the United States absent
registration with the U.S. Securities and Exchange Commission or an
exemption from registration under the U.S. Securities Act of 1933, as
amended. Conversus is not a registered investment company under the
U.S. Investment Company Act of 1940, as amended (the "Investment
Company Act"), and the resale of Conversus securities in the United
States or to U.S. persons that are not qualified purchasers as defined
in the Investment Company Act is prohibited. Conversus does not intend
to register any offering in the United States or to conduct a public
offering of its securities in the United States.
