TORONTO, Oct. 24, 2016 /CNW/ - Covington Fund II Inc. ("The Fund") announced today that it has received over $28 million in shareholder redemption requests. With the honouring of redemption requests, the Fund will have completed the fiscal 2016 shareholder redemption process relating to 20% of its net asset value as of August 31, 2016, and will not be accepting further redemption requests at this time.
The Fund anticipates that it will be re-opened to redemption requests after September 1, 2017. Specific details on such future redemption opportunities will be released at a later date and will be posted to the Fund's website at covingtonfunds.com
The Board has made this decision, consistent with previous communications and with the original prospectus of The Fund, because continuing to process redemption requests will not allow the Fund to operate in an efficient manner and will negatively impact shareholder value. The Board and the management team of The Fund remain focused on prudent liquidity management with a goal of both optimizing shareholder value and of generating liquidity to fund future redemption requests.
Since being closed to new investors in 2012, the Fund has redeemed over 60% of the outstanding units representing approximately $208 million in assets. The Fund continues to hold investments in 20 emerging private companies and Covington remains optimistic that 2016 and 2017 will offer potential exit opportunities for some of the Fund's holdings.
The Board and the Manager will continue to provide its shareholders and their advisors with regular updates throughout 2016 and 2017.
About Covington Group of Funds
Founded in 1995, Covington Capital Corporation (www.covingtonfunds.com) is one of Canada's largest and most experienced private equity and venture capital investors. Covington invests in small-and-medium businesses throughout many industry sectors. Covington Capital Corporation is headquartered in Toronto, Ontario.
SOURCE Covington Group of Funds
For further information: Craig Keates, Covington Group of Funds 416-365-0060 ext 250 or 416.365.5227, [email protected]