Nordea Private Equity II - European Middle Market Buyout K/S

Development in activities and financesProfit and loss
The fund generated a loss of EUR 9,350 (2021/2022: gain of EUR 924,041) during the financial year. This generated a negative performance of 0.2% during the financial year.

From late fourth quarter 2022 to third quarter 2023, IPOs faced volatility due to inflation concerns, causing delays in exits. The bond market fluctuated amid central bank policies, affecting US and European government and corporate yields moving upward to 16 years high at 5% level. Private equity transaction and exits stayed active despite uncertainties, but at much lower levels. New inflation data show that the inflations has started declining again and long-term interest rate has come a little down which can indicate better outlook for M&A markets in 2024.

Although the Fund’s performance, going concern and operations, at the date of this report the Fund’s performance has not been significantly impacted by the above, in regards to concerns and operations. However, the Managers of the General Partner continue to monitor the evolving situation and its impact on the financial position of the Fund.

The investments underlying this financial product do not consider the EU criteria for environmentally sustainable economic activities.

Portfolio development
Overall, Nordea Private Equity II - European Middle Market Buyout K/S’ distribution pace has declined from EUR 3.1 million (2021/2022), to EUR 2.3 million in 2022/2023, which follow the lower M&A activity in the market.

The Manager expect that the portfolio will be realised over the coming years when IPO market and M&A market improves.

Events after the balance sheet date
The Partnership neither made any new drawdowns nor distributed capital subsequent to the balance sheet date.

From the balance sheet date till today, no circumstances have occurred which could alter the assessment of the annual report.