Saga II Usd K/S

Management’s review

Performance in the financial yearThe secondary process was completed in 2020 resulting in a sale of Saga II USD’s commitments to two portfolio funds. One more portfolio fund is liquidated in 2019/20.The financial year resulted in a loss of USD 1.2 million, corresponding to an IRR of -34.2%. Losses on investments in portfolio funds amounted to USD 1.2 million.This year’s result is lower than management’s expectations.In the financial year an amount of USD 3.8 million was distributed to the limited partners, bringing accumulated distributions to USD 313.0 million, corresponding to 145.2% of the limited partners paid-in capital. An aggregate amount of USD 3.8 million was received as sale proceeds or distributed from portfolio funds during the financial year, bringing total distributions from portfolio funds to USD 344.4 million, corresponding to 156.7% of the capital contributed to portfolio funds.Special riskFinancial riskThe objective of Saga II USD is to supply risk capital to the portfolio funds, and also to their investments in competitive companies in the North American small and mid market. The highest factor of risk is therefore the changes in the value of the companies in which Saga II USD’s portfolio funds invest in, which to a significant extent depend on the valuations of comparable listed companies on the quoted market. The valuation of investments in portfolio funds is based on an estimate and could therefore be connected with some degree of uncertainty.Interest rate riskSaga II USD is less sensitive to the changes in interest rate levels.Foreign exchange currency riskSaga II USD’s investments in portfolio funds have been made in USD. As the capital in Saga II USD is in USD the currency risk is considered insignificant.Investment activityIn the period from inception to 30 September 2020 Saga II USD has invested in eight portfolio funds. Three of the portfolio funds has been disposed and four have been liquidated as of 30 September 2020.Since inception the portfolio funds have in general performed below expectations.Cash resourcesSaga II USD’s cash resources as of 30 September 2020, include cash and cash equivalents and outstanding commitments from the limited partners and are estimated as satisfactory to cover Saga II USD’s liabilities.Expectation for 2020/21It is expected that the partnership will be liquidated in 2021.