Pka Private Funds III K/S

Management’s Review

Development in activities and financial positionThe financial year 1 January – 31 December 2023 resulted in a profit of DKK 1,877 million and the balance sheet reflected equity of DKK 15,943 million as of 31 December 2023.The result is positively affected by net income from investments in portfolio funds etc. of DKK 1,892 million. This income mainly consists of fair value adjustments of DKK 2,279 million, primarily driven by strong performance and growth in almost all underlying portfolio investments as well as a high number of exits with significant uplifts totaling DKK 714 million. However, the result is also negatively affected by exchange rate adjustments of investments of DKK -387 million, primarily due to the decrease in the USD exchange rate during the financial year.Furthermore, the valuation of investments in portfolio funds etc. is also to some extent negatively impacted by significant market uncertainties arising from future interest rate developments and inflation.PKA Private Funds III K/S has made a total of 31 capital commitments to underlying portfolio funds and co-investments. There has been a full exit of a co-investment and several partial exits in underlying portfolio funds during the financial year.The limited partnership has since inception invested DKK 12,699 million in underlying portfolio investments, of which DKK 1,675 million was invested in 2023. During the year, the limited partnership has received distributions from portfolio investments totaling DKK 1,789 million.The investment period expired on 30 June 2020, after which no capital commitments will be made to new portfolio funds or co-investments.The result for 2023 is considered satisfactory.Capital structurePKA Private Funds III K/S has a total capital commitment of DKK 15,105 million. Investors have contributed DKK 12,746 million as of 31 December 2023, equivalent to 84.4% of the total capital commitment.Outstanding commitments amount to DKK 3,220 million as of 31 December 2023.Sustainability update (SFDR)The investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.