Fund Manager's Commentary - February/March 2013

On 1 February the company announced that it had received a cash distribution of £7.9 million in relation to the sale of Advantage Healthcare by Rutland Fund I. Following receipt of this distribution, the company's cash and equivalents are approximately £10.5 million. The company now has only two remaining underlying portfolio companies, both of which sit within August Equity Partners I. The company's carrying value for its holding in August Equity Partners I is currently £3.9 million. The company’s NAV per share (cum) at 28 February 2013 was 395.7p.

As indicated in the company’s announcement on 8 February, in view of the very advanced status of the Realisation Strategy, the Board is now aiming to post a circular to shareholders, probably during the second quarter of 2013, which will propose the company's voluntary liquidation and the appointment of a liquidator.

It is expected that the voluntary liquidation proposal will include a substantial initial capital distribution by the liquidator to those shareholders on the company's Register of Members at the date of the liquidator's appointment. The liquidator will, however, need to retain sufficient cash and other assets to cover the company's estimated residual and contingent liabilities, with further distributions being made to shareholders as and when possible.

In view of the approach outlined above, the Board does not currently anticipate that any further tender offers will be undertaken as part of the company's Realisation Strategy nor is it anticipating using buyback powers unless absolutely necessary.