Kensington Global Private Equity Fund releases quarterly financial statements and current portfolio investments



    
                    KENSINGTON GLOBAL PRIVATE EQUITY FUND
    
    Kensington Global Private Equity Fund was established under the laws
    of the Province of Ontario by a declaration of trust made as of
    April 11, 2007. The Fund was created to provide unitholders with
    access to a diversified portfolio of global private equity
    investments, including private equity funds, funds of private equity
    funds and direct investments in private companies.

    TORONTO, Aug. 29 /CNW/ - Kensington Capital Partners Limited, Canada's
leading independent private equity fund investor, today released the quarterly
financial statements as of June 30, 2007 for The Kensington Global Private
Equity Fund.
    The Fund closed on April 20, 2007 with total capital of $22,680,400
consisting of $11,340,200 paid into the Fund at closing, and a further
$11,340,200 payable by unitholders as a second instalment on December 5, 2007.
Initially, the total capital of the Fund was held in Liquid Investments
pending commitment to and funding of underlying private equity investments.
Investments made in primary private equity funds, and funds of private equity
funds, are generally structured as capital commitments which are funded over
time as capital is called down by the underlying private equity fund managers.

    Investments to date include;

    Nordea Private Equity II - European Middle Market Buyout Fund

    On May 3, 2007 the Fund committed 1,500,000 to Nordea Private Equity II -
European Middle-Market Buyout Fund, a fund investing in a diversified
portfolio of local and regional European middle-market buyout funds with
investment strategies varying from buyouts and turnaround to special situation
investments.

    Novacap Industries III, L.P.

    On May 30, 2007 the Fund committed $750,000 to Novacap Industries III,
L.P. a Canadian middle-market buyout fund based in Montreal. The fund invests
in Canadian companies within traditional industries that have strong growth
potential by developing their market, technology and operations, or through
industry consolidations.

    HarbourVest Partners VIII - Buyout Fund L.P.

    On June 12, 2007 the Fund committed US$850,000 to HarbourVest Partners
VIII - Buyout Fund L.P., a U.S. fund building a portfolio of primary and
secondary investments in U.S.-based buyout, recapitalization and other private
equity funds, including a small number of direct investments in operating
companies.

    HarbourVest Partners VIII - Venture Fund L.P.

    On June 12, 2007 the Fund committed US$150,000 to HarbourVest Partners
VIII - Venture Fund L.P., a U.S. fund building a portfolio of primary and
secondary investments in U.S.-based venture capital funds, including a small
number of direct investments in operating companies.

    HarbourVest International Private Equity Partners V  - Direct Fund L.P.

    On June 12, 2007 the Fund committed (euro) 2,000,000 to HarbourVest
International Private Equity Partners V - Direct Fund L.P., a buyout and
growth equity co-investment fund investing in a diversified portfolio of
operating companies, primarily based in Europe.

    TriWest Capital Partners III L.P.

    On June 22, 2007 the Fund committed $2,500,000 to TriWest Capital
Partners III L.P., a Canadian middle-market buyout fund based in Calgary. The
fund invests in a diversified portfolio of primarily western Canadian based
companies that are established and profitable, operating in traditional
industries such as manufacturing, food processing, transportation and
services.

    Novacap Technologies Buyout III, L.P.

    On June 25, 2007 the Fund committed $500,000 to Novacap Technologies
Buyout III, L.P., a Canadian private equity fund based in Montreal focusing on
the technology sector through buyouts and later stage venture capital
investments in the information and communication technologies sector.

    
                   Geographical Distribution of Commitments
                               At June 30, 2007


    To view a pie chart of Geographic distribution - Commitments, click here:
    http://files.newswire.ca/624/kensington_1_E.doc


                     Industry Segmentation of Commitments
                               At June 30, 2007


    To view a pie chart of Industry Segmentation, click here:
    http://files.newswire.ca/624/Kensington_2_E.doc

    See Note 4 of the Financial Statements for details.


    Subsequent to June 30, 2007, the Fund made the following Commitments:

        Novacap II LP                                            $ 8,400,000

        Kilmer Capital Fund II LP                                $ 1,000,000

    Subsequent to June 30, 2007, the Fund made the following capital
    contributions:

        Novacap II LP                                            $ 6,868,099

        TriWest Capital Partners III LP                          $    26,096

        Kilmer Capital Fund II LP                                $     9,400

        HarbourVest Partners Venture - VIII LP                   $     3,164
    

    The Kensington Global Private Equity Fund offers individual investors a
    diversified portfolio of world-class private equity investments,
    including hard-to-access private equity funds and direct investments in
    private companies. Traditionally, investments in private equity have only
    been available to investors who could meet very high minimum investment
    thresholds. The Kensington Global Private Equity Fund was established to
    make these investment opportunities available to the broader investing
    public.

    Kensington Capital Partners Limited is Canada's leading independent
    private equity fund investor, founded in 1996. To date, Kensington has
    received commitments of over $350 million for private equity investments
    through its fund-of-funds and direct co-investment programs, all of which
    are advised by Kensington Investment Management Inc., an ICPM registered
    with the OSC. Institutional investors such as pension funds and
    professional asset managers, as well as high net-worth individuals and
    retail investors, hold Kensington funds. Kensington has consistently
    achieved top-quartile financial returns for its investors. For more
    information on Kensington Capital Partners Limited and current offerings,
    please visit www.kcpl.ca.

    
                    KENSINGTON GLOBAL PRIVATE EQUITY FUND
                             FINANCIAL STATEMENTS
                                 (UNAUDITED)
                                JUNE 30, 2007


    KENSINGTON GLOBAL PRIVATE
    EQUITY FUND

    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

    June 30, 2007
    -------------------------------------------------------------------------


    1.  Formation of the Fund

        Kensington Global Private Equity Fund (the "Fund") was established
        under the laws of the Province of Ontario by a declaration of trust
        made as of April 11, 2007. The Fund was created to provide
        unitholders with access to a diversified portfolio of global private
        equity investments, including private equity funds, funds of private
        equity funds and direct investments in private companies.

        The Fund closed on April 20, 2007 with total capital of $22,680,400
        consisting of $11,340,200 paid into the Fund at closing, and a
        further $11,340,200 payable by unitholders as a second instalment on
        December 5, 2007. Initially, the total capital of the Fund was held
        in Liquid Investments (see Note 3) pending commitment to and funding
        of underlying private equity investments. Investments made in primary
        private equity funds, and funds of private equity funds, are
        generally structured as capital commitments which are funded over
        time as capital is called down by the underlying private equity fund
        managers.

        Kensington Capital Partners Limited is the Manager and Trustee of the
        Fund. Kensington Investment Management Inc., a wholly-owned
        subsidiary of the Manager, has been retained as the Investment
        Advisor to provide investment advisory and portfolio management
        services to the Fund. The Investment Advisor is responsible for
        making all investment decisions. The Manager is entitled to a
        management fee based on the net asset value ("NAV") of the Fund
        (adjusted to include the unpaid instalment receivables). The Manager
        will also be eligible to earn a performance fee beginning in 2010.
        See note 7.

        Income is allocated to the unitholders on a pro rata basis. There is
        no termination date for the Fund. However, if the units of the Fund
        are not listed on the Toronto Stock Exchange on or
        before April 20, 2015 the Fund will terminate on that date.

    2.  Significant accounting policies:

        These financial statements have been prepared by the Manager in
        accordance with Canadian generally accepted accounting principles.
        The significant accounting principles are as follows:

        Basis of presentation

        These financial statements are prepared on a fair value basis with
        investments in funds and direct investments presented as described
        below. Other financial assets and liabilities and non-financials
        assets and liabilities are stated at amortized cost or historical
        cost which approximates fair value because of the short-term nature
        of the items.

        Portfolio investments - Cost of investments

        The cost of private equity investments includes all amounts paid to
        fund the subscription or acquisition of the investment to date.
        Investments in private equity funds are funded over time in response
        to capital calls from the private equity fund managers and cannot
        exceed the total committed amount. Interest paid for fund investments
        made after the fund's initial closing is considered an interest
        expense of the Fund and is not included as part of the cost of that
        investment and is not applied against the committed amount for that
        fund.

        Portfolio investments - Valuation of investments

        Investments are carried at estimated fair market value. Estimated
        fair market value is generally cost for the first twelve months after
        an investment is made. Thereafter, investments are carried at the
        values determined and reported by the underlying private equity fund
        managers. These values are based on the fair value of the underlying
        investments held by the funds. Fair value is defined and evaluated
        independently by each fund. Kensington may adjust these values if, in
        its view, the values do not reflect the price which would be paid in
        an open and unrestricted market between informed and prudent parties,
        acting at arm's length and under no compulsion to act.

        Financial instruments

        Unless otherwise noted, financial assets and liabilities are carried
        at cost, which approximates fair value given their short-term nature.

        Investment income

        Interest income is recorded on an accrual basis. Dividend income is
        recorded when declared and payable to the funds. The difference
        between fair value and cost of investments is recorded as unrealized
        gains (losses).

        Use of estimates

        Financial statements prepared in accordance with Canadian generally
        accepted accounting principles require management to make estimates
        and assumptions that affect the reported amounts of assets and
        liabilities as at the date of the financial statements and the income
        and expenses during the reporting period. Significant estimates and
        judgments are required principally in determining the reported
        estimated fair values of investments since these determinations
        include estimates of expected future cash flows, rates of return and
        the impact of future events. Actual results could differ from those
        estimates.

    3.  Liquid Investments

        Capital held by the Fund pending investment in private equity
        investments is invested in Liquid Investments, consisting of a
        variety of financial products such as cash and cash equivalents,
        government securities, money market instruments and investment-grade
        securities, as well as listed securities of private equity funds and
        other securities consistent with the overall objectives of liquidity,
        capital preservation and an appropriate return.

    4.  Investments

        Nordea Private Equity II - European Middle Market Buyout Fund
        -------------------------------------------------------------

        On May 3, 2007 the Fund committed (euro) 1,500,000 to Nordea Private
        Equity II - European Middle- Market Buyout Fund, a fund investing in
        a diversified portfolio of local and regional European middle-market
        buyout funds with investment strategies varying from buyouts and
        turnaround to special situation investments.

        Novacap Industries III, L.P.
        ----------------------------

        On May 30, 2007 the Fund committed $750,000 to Novacap Industries
        III, L.P. a Canadian middle-market buyout fund based in Montreal. The
        fund invests in Canadian companies within traditional industries that
        have strong growth potential by developing their market, technology
        and operations, or through industry consolidations.

        HarbourVest Partners VIII - Buyout Fund L.P.
        --------------------------------------------

        On June 12, 2007 the Fund committed US$850,000 to HarbourVest
        Partners VIII - Buyout Fund L.P., a U.S. fund building a portfolio of
        primary and secondary investments in U.S.-based buyout,
        recapitalization and other private equity funds, including a small
        number of direct investments in operating companies.

        HarbourVest Partners VIII - Venture Fund L.P.
        ---------------------------------------------

        On June 12, 2007 the Fund committed US$150,000 to HarbourVest
        Partners VIII - Venture Fund L.P., a U.S. fund building a portfolio
        of primary and secondary investments in U.S.-based venture capital
        funds, including a small number of direct investments in operating
        companies.

        HarbourVest International Private Equity Partners V -
        Direct Fund L.P.
        -----------------------------------------------------

        On June 12, 2007 the Fund committed (euro) 2,000,000 to HarbourVest
        International Private Equity Partners V - Direct Fund L.P., a buyout
        and growth equity co-investment fund investing in a diversified
        portfolio of operating companies, primarily based in Europe.

        TriWest Capital Partners III L.P.
        ---------------------------------

        On June 22, 2007 the Fund committed $2,500,000 to TriWest Capital
        Partners III L.P., a Canadian middle-market buyout fund based in
        Calgary. The fund invests in a diversified portfolio of primarily
        western Canadian based companies that are established and profitable,
        operating in traditional industries such as manufacturing, food
        processing, transportation and services.

        Novacap Technologies Buyout III, L.P.
        -------------------------------------

        On June 25, 2007 the Fund committed $500,000 to Novacap Technologies
        Buyout III, L.P., a Canadian private equity fund based in Montreal
        focusing on the technology sector through buyouts and later stage
        venture capital investments in the information and communication
        technologies sector.


        Geographic Distribution

        The chart that can be viewed at
        http://files.newswire.ca/624/Kensington_3_E.doc illustrates the
        allocation of the Fund's capital committed to private equity
        investments among major geographic regions as at June 30, 2007.

                                              Geographic Focus
                                  -------------------------------------------
                                                           United
    Description                    Canada      Europe      States     Total
    -----------------------------  ----------  ----------  ---------- ------

    Private Equity Investments
    --------------------------
    HarbourVest HIPEP V                           X
    HarbourVest Partners
     Buyout VIII                                              X
    HarbourVest Partners
     Venture VIII                                             X
    Nordea Private Equity II
     - European Middle                            X
    Novacap III Industries             X
    Novacap III Technology             X
    TriWest Capital Partners
     III LP                            X


                             Amount      % of Net      Amount      % of Net
                             (in C$)      Assets       (in C$)      Assets
                             -------      ------       -------      ------
    Cost                  $         -       0.0%    $ 1,680,827        14.8%
    ----                 -------------             -------------

    Market Value          $         -       0.0%    $ 1,714,022        15.1%
    ------------

                             Amount      % of Net      Amount      % of Net
                             (in C$)      Assets       (in C$)      Assets
                             -------      ------       -------      ------
     Cost                 $   107,980       1.0%    $ 1,788,806        15.8%
     ----                -------------              ------------

     Market Value         $   113,366       1.0%    $ 1,827,388        16.1%
     ------------        -------------              ------------      -------


        Industry Segmentation

        The chart that can be viewed at
        http://files.newswire.ca/624/Kensington_4_E.doc illustrates the
        estimated allocation of the Fund's capital committed to private
        equity investments among major industry segments as at June 30, 2007.
        Note that details of each of the underlying investments made by
        private equity funds in the Fund's portfolio are not available at the
        time of preparation of this statement. The Manager has produced the
        following estimates based on the most recent portfolio allocations
        provided by such private equity funds and applying those industry
        allocations to the current reported values of such funds. As a
        result, the actual industry allocations may differ from the estimates
        presented below.


                                              Industry Focus
                           --------------------------------------------------
                                        Financial   Materials &    Consumer
    Description            Technology    Services  Manufacturing   Products
    ---------------------  --------------------------------------------------
    Private Equity
     Investments
    HarbourVest HIPEP V        Yes          Yes          Yes          Yes
    HarbourVest Partners
     Buyout VIII               Yes          Yes          Yes          Yes
    HarbourVest Partners
     Venture VIII              Yes           No           No           No
    Nordea Private Equity II
     - European Middle         Yes          Yes          Yes           No
    Novacap III Industries       -            -            -            -
    Novacap III Technology     Yes           No           No           No
    TriWest Capital
     Partners III LP             -            -            -            -


                              Industry Focus
                           -----------------------
    Description             Healthcare    Other
    ---------------------  -----------------------
    Private Equity
     Investments
    HarbourVest HIPEP V        Yes          No
    HarbourVest Partners
     Buyout VIII               Yes         Yes
    HarbourVest Partners
     Venture VIII               No         Yes
    Nordea Private Equity II
     - European Middle         Yes         Yes
    Novacap III Industries       -           -
    Novacap III Technology      No         Yes
    TriWest Capital
     Partners III LP             -           -

    Industry focus is based on the expected investment allocations of the
    funds, and is not indicated where such funds have not yet invested any
    capital and their industry focus is unspecified.


                                              Industry Focus
                           --------------------------------------------------
                                        Financial   Materials &    Consumer
    Description            Technology    Services  Manufacturing   Products
    ---------------------  --------------------------------------------------
    TOTALS
    Cost (expressed
     in C$)               $   611,475  $   226,337  $   566,162  $   214,918
                          ------------ ------------ ------------ ------------
    % of Fund Net Assets         5.4%         2.0%         5.0%         1.9%

    Market (Expressed
     in C$)               $   624,842  $   226,521  $   579,986  $   218,340
    % of Fund Net Assets         5.5%         2.0%         5.1%         1.9%
                                ------       ------      -------      ------

                                     Industry Focus
                           -----------------------------------
    Description             Healthcare    Other       Total
    ---------------------  -----------------------------------
    TOTALS
    Cost (expressed
     in C$)               $    90,847  $    79,067  $ 1,788,806
                          ------------ ------------ ------------
    % of Fund Net Assets         0.8%         0.7%        15.8%

    Market (Expressed
     in C$)               $    96,611  $    81,087  $ 1,827,388
                                                    ------------
    % of Fund Net Assets         0.9%         0.7%        16.1%
                                ------       ------      -------


    5.  Units Outstanding

        On April 20, 2007 the Fund issued a total of 1,134,020 units at a
        subscription price of $20.00 per unit. The first portion of the
        subscription price equal to $10.00 per unit ($11,340,200 in total)
        was received by the Fund on closing, and a second instalment of
        $10.00 per unit ($11,340,200 in total) is due from unitholders on
        December 5, 2007. The units are evidenced by a global certificate in
        the custody of CDS Inc.

    6.  Income Taxes

        The Fund is subject to income tax in Canada on the amount of its
        income for the year, including net realized taxable capital gains,
        less the amount that it claims in respect of the amount of such
        income paid or payable to Unitholders in the year. The Fund generally
        intends to claim the full amount available for deduction in each year
        and, therefore, expects that it will generally not be liable for
        Canadian income tax.

        As a result of its investments, the Fund may derive income (including
        gains) from investments in countries other than Canada and, as a
        result, may be liable to pay income or profits tax to such countries.
        The financial statements reflect only the amount of non-recoverable
        income tax paid or payable by the Fund.

    7.  Management Fees and Management Expense Ratio

        The Fund pays all ordinary expenses incurred in connection with its
        operation and administration, and is responsible for commissions and
        other costs of securities transactions and any extraordinary expenses
        which may be incurred by it from time to time. The Fund is also
        responsible for investment expenses incurred by the Manager and the
        Investment Advisor relating to investment operations, due diligence
        and research, including any costs related to investment transactions
        which are not completed. The Manager is responsible for payment of
        fees to the Investment Advisor from the management fee it receives
        from the Investment Fund.

        During the initial commitment period of the Fund, the Manager is paid
        a management fee equal to an annual rate of 1.0% of the net asset
        value ("NAV") of the Fund (adjusted to include the unpaid instalment
        receivables) on the portion of the capital of the Fund that has not
        been committed to underlying private equity investments. As capital
        is committed to underlying private equity investments, the management
        fee increases to 1.95% of the NAV on such committed amounts.
        Accordingly, following the end of the initial commitment period, the
        management fee will be equal to an annual rate of 1.95% of the NAV of
        the Fund (adjusted to include the unpaid instalment receivables). The
        initial commitment period shall end when the Fund has made
        commitments to invest in underlying private equity investments in an
        aggregate amount equal to the proceeds of the initial offering of
        units, including the proceeds of the second instalments (see Note 5).

        The Manager is also eligible to earn a Performance Fee beginning in
        2010. In order for the Manager to become eligible to earn the
        Performance Fee in any year, the Performance Hurdle must be achieved
        by payment of sufficient cash distributions to unitholders and
        maintenance of a sufficient NAV per unit. The Performance Fee, if
        earned, is payable to the Manager in units over a 5-year vesting
        period. The Manager cannot earn a Performance Fee unless the Fund
        earns and distributes profits to unitholders.

        Each registered dealer whose clients hold units is paid a service fee
        calculated and paid quarterly and equal to 0.40% annually of the NAV
        (adjusted to include the unpaid instalment receivables) of the units
        held at the end of the relevant quarter by clients of the registered
        dealer.

        During the period under review from April 20 up to and including
        June 30th, a total of $44,740 was paid by the Fund to the Manager as
        management fees, plus GST. Additional expenses of $42,716 (plus GST)
        were incurred in the management of the Fund during the period ended
        June 30, 2007 for a total of $87,456 or 1.98% of the total net assets
        of the Fund (adjusted to include the unpaid instalment receivables)
        on an annualized basis, plus GST.

        The Fund is also subject to fees and expenses of the underlying
        private equity investments, including management fees payable to
        managers of private equity funds and carried interest payments or
        other performance fees. These fees and expenses form part of the
        invested capital in such underlying private equity investments for
        the purpose of determining their performance, and generally will be
        recovered by the Fund and other investors prior to the payment of
        performance fees or a carried interest to the manager of the
        underlying private equity investment.

    8.  Subsequent events

        Subsequent to June 30, 2007, the Fund made the following Commitments:

        Novacap II LP                                            $ 8,400,000
        Kilmer Capital Fund II LP                                $ 1,000,000

        Subsequent to June 30, 2007, the Fund made the following capital
        contributions:

        Novacap II LP                                            $ 6,868,099
        TriWest Capital Partners III LP                          $    26,096
        Kilmer Capital Fund II LP                                $     9,400
        HarbourVest Partners Venture - VIII LP                   $     3,164

    





For further information:

For further information: Media requiring further information please
contact: Rick Nathan, Managing Director, (416) 362-2824, rnathan@kcpl.ca; Ally
O'Keefe, Media and Investor Relations, (416) 362-2824, rnathan@kcpl.ca


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890