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KENSINGTON PRIVATE EQUITY FUND (THE “FUND”)
FREQUENTLY ASKED QUESTIONS – SUSPENSION OF REDEMPTIONS
Will existing redemption requests be impacted by the suspension of redemptions?
Existing redemption requests will remain in place until the end of October, following which redemptions in excess of the per class annual limit will be cancelled on a pro-rata basis in accordance with the terms of the Fund’s governing documents. Investors submitting redemptions will be notified of their pro-rata allocations, and those pro-rata amounts will remain pending in the redemption queue during the suspension period, and the remainder shall be cancelled and withdrawn.
Why has Kensington suspended redemptions?
This temporary suspension of redemptions is the result of ongoing, persistent, market challenges that have impacted our ability to liquidate assets within the Fund’s portfolio. We have seen reduced liquidity as a result of historically low IPO and M&A levels. These conditions have also affected private equity and venture capital investment valuations, as reflected in the NAV.
Our primary motivation for suspending redemptions is to preserve the long-term value of the Fund’s portfolio and protect the interests of all unitholders by ensuring the Fund is well positioned to achieve its long-term investment goals.
When will pending redemptions be settled and in what priority?
Kensington anticipates that the suspension will remain in place for an initial period of 90 days, and may, depending on the market environment, extend for subsequent periods in accordance with the Fund’s terms. While hard to predict given this decision is driven by market conditions, based on our current outlook, we are expecting to extend the suspension for subsequent periods.
At such time as the suspension of redemptions is lifted, pending redemptions submitted during this annual redemption period will be fulfilled on a pro-rata basis.
What redemption price will unitholders receive for redeemed units when redemptions are paid after the suspension is lifted?
You will receive the net asset value (“NAV”) as of the applicable redemption date corresponding to your redemption request. For example, if you submit a notice during the annual redemption window (open September-October), you will receive the December 2025 NAV as the redemption price when the suspension is lifted and redemptions are settled.
Is the Fund accepting new subscriptions?
Yes.
Will the Fund remain eligible for registered accounts?
Yes. The Fund’s eligibility for registered accounts is unaffected by the suspension of redemptions.
Are unitholders able to continue to submit a redemption requests during the redemption window while the suspension of redemptions is in effect?
Yes, redemption requests may still be submitted until the end of October for all the classes (except for class L units which has quarterly liquidity and a different schedule for redemptions).
When is the next opportunity I can submit a redemption request following the annual redemption window?
Subsequent opportunities for investors to submit redemption requests is dependent on the class of units held by such investor. Details of the redemption period for each class of units are set out in the Fund’s declaration of trust and offering memorandum.