Carmignac Private Evergreen

• Private Wealth market: A significant market representing c.$200tn assets globally according to BNP Paribas, with allocation to private markets standing at <3% for private investors vs. c.14% for institutional investors (Bain PE Report 2023), indicating significant white space for further private market exposure for the former. Semi-liquid funds have demonstrated strong uptake over the past few years, and is estimated to represent c.$400bn globally to date according to iCapital.• Secondaries deal volume: According to Evercore, 2024 achieved a record-breaking transaction volume of an estimated $160bn. This landmark achievement not only underscores the rapid growth of the market but also surpasses the historic high set in 2021. The sustained momentum reflects the market’s ability to innovate and adapt, attracting a broader range of participants and delivering tailored solutions to meet the growing demands for liquidity and portfolio management.
The LP-led segment, representing 56%, maintained momentum throughout 2024 having grown 41% YoY. Liquidity pressure, coupled with a favourable pricing environment, have prompted a diverse range of investors to turn to the secondary market as a strategic tool for managing their private investment portfolios. The rise of evergreen vehicles has also boosted demand, adding new dimensions to the market and fostering heightened competitive dynamics while enabling buyers to deploy larger capital commitments.
The GP-led market, representing 44%, also made new high in 2024, driven by continued adoption and robust dynamics on both demand and supply sides.
• Secondaries pricing: Pricing of LP-led Secondary deals is on the high side, underscoring the need to be disciplined and offer other non-price attributes such as speed and reliability of deal execution and deal structuring to remain competitive. Convergence of bid-ask spreads seems to increase driven by favourable investor sentiment according to Evercore.

• In June 2025, the Net Asset Value (“NAV”) of Carmignac Private Evergreen (EUR A) decreased by -0.8%. This was driven primarily by the depreciation of the USD against the EUR (-3.5% MoM), but offset by the slight positive appreciation in Project Roland, the receipt of equalisation interests of new investors subscribing to CSF 1, and returns on the liquid sleeve. The rest of the portfolio remained flat versus the previous month but we expect Q2 marks to start coming in and being recognised in the NAV from July 2025. Despite the negative impact arising from the USD depreciating against the EUR by -6% in Q2 2025 (our portfolio has 34% of USD exposure), our portfolio has remained relatively resilient, with a much more muted decline versus the dollar thanks to our hedging strategy which leaves us with a net unhedged USD exposure of 5% of NAV as of today.
• We are pleased to have signed one deal (Project Minerva) this month which we expect to transfer in July. We see many attractive secondary and direct co-investments, particularly in the mid-market space. We remain confident that times like now characterized by high market uncertainty, represents an attractive entry point for investments given potential valuation dislocations driven by factors such as demand for liquidity, need for portfolio rebalancing, or desire to crystalize gains. We are actively reviewing a strong deal pipeline and to have sufficient dry powder to capitalise on opportunities and continue to remain highly selective.

• Investment Strategy: Focused on Secondaries, Carmignac Private Evergreen allows us to offer a one-stop-shop Private Equity solution for investors looking to build a diversified exposure to high quality buyout companies from Day 1. Our target allocation includes a focus on Secondaries through co-investments featuring attractive terms, while investing opportunistically in high-conviction direct co-investments to generate alpha. Primary investments will be considered later on in the Fund’s life. Secondaries offer an attractive risk-return profile, thanks to the possibility to negotiate favourable terms and structuring such as discounts and deferred payments and offers numerous benefits such as a reduced J-curve effect and blind-pool risk. It is a unique asset class with low correlation with both public and other private market strategies, which reiterates the complementarity of public and private strategies within an investment portfolio.• Outlook: Today our portfolio offers exposure to >380 companies across 9 investments and is highly diversified across sectors, geographies and vintages, while still maintaining a focus on developed markets and private equity buyouts. As the Fund is still in its ramp-up phase, the liquid sleeve of the portfolio is larger than its intended allocation. We expect this to normalize by end-2025. Of note, the liquid sleeve is actively managed and invested in a curated range of Carmignac’s fixed income and credit funds on a no fee basis.