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Kensington Private Equity Fund Notice

September 30, 2025

Dear Valued Clients,

Kensington Capital Advisors Inc., the manager of the Kensington Private Equity Fund (the “Fund”), has suspended redemptions of units of the Fund (the “Units”), effective immediately. The suspension will remain in place for an initial period of 90 days and may be extended in accordance with the Fund’s governing terms. This suspension applies to all pending redemption requests, as well as all new redemption requests received while the suspension is in effect.

In recognition of the impact to investors, Kensington will temporarily reduce the management fee payable on all classes of Units by 10 basis points, effective immediately.

The suspension of redemptions is intended to protect the interests of all unitholders by ensuring the Fund remains positioned to deliver on its investment objective for all investors and is prudent given the extraordinary nature of the current market environment.

Since 2022, private companies have faced significant headwinds from numerous factors, including a period of rapidly increasing interest rates to combat inflation, and the more recent trade and tariff impacts, all resulting in a softer economic environment and reduced valuations for many private companies. At the same time, there has been the lack of liquidity across all private markets, with IPO activity at generational lows alongside significant reductions in M&A transaction volumes through the past three years.

These market dynamics have led to more muted investment returns in this cycle, driving elevated redemption activity across private asset classes, and creating industry wide liquidity challenges. With a diversified portfolio comprised of hundreds of private companies, the Kensington Private Equity Fund has been impacted by these broad market conditions.

Persistent, elevated redemption activity can have the unintended consequence of forcing sales of investments on less favourable terms to meet short-term time constraints and at lower valuations than if the investment were held to its mature exit point. That is why we have taken the necessary step of temporarily suspending redemptions and preserving value in the Fund.

With interest rates easing and deal activity picking up, we are optimistic that a gradual return to a more normalized market environment will occur. To that end, we are actively pursuing a number of avenues to improve liquidity and performance:

  • The responsible sale of assets as market conditions allow;
  • Reduction of the Fund’s leverage and debt costs;
  • Continued investment in our portfolio companies for growth.

These improvements aim to allow us to sell investments on more favorable terms in the future and resume redemptions in due course without impairing the long-term growth opportunities for remaining investors.

Further, we believe that despite the abnormal length of this market slowdown in private equity and venture capital, the scale and vibrancy of the market will continue to make it an attractive sector for investment for many years to come.

Our team has navigated multiple market cycles over the last two decades and we remain confident that we have the experience and discipline required to manage through the current economic cycle.

We recognize the trust investors have put in Kensington and we take our duties and responsibilities to all investors seriously, whether they are seeking to redeem or to remain in the Fund. We will remain committed to transparency and regular communications with our investors and advisors during this period. Thank you for your continued support of Kensington.

Sincerely,

Thomas Kennedy
Senior Managing Director and Founder