Conversus Capital, L.P. (Euronext Amsterdam: CCAP) ("Conversus"), announced today that its Financial Report for the nine months and quarter ended September 30, 2008 is available on the Conversus website at www.conversus.com in the Investor Relations section under the heading of "Reports and Financial Statements."
As of September 30, 2008, Conversus had an estimated NAV per unit of $25.85. This represents a decrease of 6.5% since June 30, 2008. Funded assets were $2,060.0 million while unfunded commitments were $868.4 million as of September 30, 2008.
The estimated NAV per unit of $25.85 as of September 30, 2008 was lower than the originally reported amount of $26.48 per unit. The decrease was due to the receipt of additional portfolio valuation information subsequent to quarter–end which represented general partner valuations as of September 30.
With the additional portfolio information, as of September 30, 2008, 43% of the investment NAV was comprised of private holdings valued based on September 30, 2008 general partner statements, 31% represented private holdings valued based on June 30, 2008 general partner statements, 4% represented private holdings valued based on general partner statements as of other dates and 3% was comprised of direct co–investments valued as of September 30, 2008. A further 16% of the investment NAV was comprised of public equity securities which were marked to market as of September 30 as further described below in Valuation and Reporting Policies. The remaining 3% of investment NAV represented cash and other net assets held by the funds in which Conversus is invested.
Estimated NAV as of November 30, 2008 will be released on December 10, 2008 and the estimated NAV as of December 31, 2008 will be released on January 12, 2009.
Valuation and Reporting Policies
Conversus carries investments on its books at fair value in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Conversus uses the best information it has available to estimate fair value. Fair value for private equity interests begins with the most recent financial information provided by the general partners, 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 equity security known to be owned by the funds based on the most recent information reported to us by the general partners has been marked to market as of September 30, 2008 and a discount has been applied to such securities based on an estimate of the discount applied by the general partners 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 U.S. 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.
About Conversus Capital
Conversus Capital, L.P. (Euronext Amsterdam: CCAP) ("Conversus") is the largest publicly traded portfolio of third party private equity funds. It is a permanent capital vehicle providing its unitholders long–term capital appreciation through a portfolio of high–quality, seasoned private equity interests. Conversus´ objective is to provide unitholders with immediate exposure to a diversified portfolio of private equity assets, access to best–in–class general partners and consistent NAV growth that outperforms the public markets. Conversus reinvests the 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.
Forward–Looking Statements
These materials may contain certain forward–looking statements with respect to the financial condition, results of operations, liquidity, investments, business, net asset value and prospects of Conversus. By their nature, forward–looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future, and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward–looking statements. Conversus does not undertake to update any of these forward–looking statements. Past performance is not necessarily indicative of future results.
