crown asia-pacific private equity plc · end date 13 july 2011 fund expiry date 13 july 2019 ......

Crown AsiA-PACifiC PrivAte equity PlC

Annual Report and Audited Financial StatementsFor the year ended 31 December 2014

Registered Number: 441645

This document is for information only and is not an offer to sell or an invitation to invest. In particular, it

does not constitute an offer or solicitation in any jurisdiction where it is unlawful or where the person

making the offer or solicitation is not qualified to do so or the recipient may not lawfully receive any such

offer or solicitation. It is the responsibility of any person in possession of this document to inform them-

selves of, and to observe, all applicable laws and regulations of relevant jurisdictions. The information

and any opinions contained herein have been obtained from or are based on sources, which are believed

to be reliable, but their accuracy cannot be guaranteed. No responsibility can be accepted for any conse-

quential loss from this information. Performance numbers shown are records of past performance and as

such do not guarantee future performance. In addition, the information contained herein is unaudited.

Strictly confidential

table of contents

Table of contents | Crown AsiA-pACifiC privAte equity Annual report 2014 03

Directors and other information 4 Background to the Company 5 investment Advisor’s report 6 Directors’ report 9 Custodian’s report 15 independent Auditors’ report 16 statement of comprehensive income 18 Balance sheet 19 statement of changes in net assets attributable to shareholders 20 Cash flow statement 21 notes to the financial statements 22 portfolio of investments 39


Directors and other information

04 Crown AsiA-pACifiC privAte equity Annual report 2014 | Directors and other information

Board of Directors

urs Gaehwiler (swiss)

paul Garvey (irish)

André Lagger (swiss) (resigned 2 october 2014)

roberto paganoni (Dutch) (resigned 7 May 2014)

robert schlachter (swiss) (appointed 29 July 2014)

tycho sneyers (Belgian)

Desmond tobin (irish)

Independent Director

Konrad Baechinger (swiss)

Investment Advisor and Distributor

LGt Capital partners Limited

schuetzenstrasse 6

8808 pfaeffikon

switzerland

Main contacts:

tycho sneyers

robert schlachter

Investment Manager

LGt Capital partners (ireland) Limited

segrave House

19/20 earlsfort terrace

Dublin 2

ireland

Main contact:

Brian Goonan

Administrator/Transfer Agent

LGt fund Managers (ireland) Limited

segrave House


Dublin 2

ireland

Main contact:

paul Garvey

Trustee and Custodian

Credit suisse international, Dublin Branch

Kilmore House

park Lane

spencer Dock

Dublin 1

ireland

Secretary and Registered Office

LGt fund Managers (ireland) Limited

segrave House


Dublin 2

ireland

Main contact:

Kathryn o’Driscoll

Independent Auditors

pricewaterhouseCoopers

Chartered Accountants

and statutory Audit firm

one spencer Dock

north wall quay

Dublin 1

ireland

Legal Advisor and Listing Sponsor

Maples and Calder

solicitors

75 st stephen’s Green

Dublin 2

ireland


Background to the Companythe following information is derived from and should

be read in conjunction with the full text and definitions

section of Crown Asia-pacific private equity plc’s (“Crown

AsiA-pACifiC privAte equity”, “CApe”, the “Company”

or the “fund”) prospectus (the “prospectus”).

Structure

fund size usD 372.8 million

Date of incorporation 19 June 2007

initial closing date 13 July 2007

final closing date 13 January 2009

vintage year 2007

Commitment period:

start date 13 July 2007

end date 13 July 2011

fund expiry date 13 July 2019

extension periods up to three one-year extensions

the Company is a closed-ended investment company with

variable capital, incorporated on 19 June 2007 with lim-

ited liability under the laws of ireland. the Company was

authorized by the Central Bank of ireland on 11 July 2007

pursuant to the provisions of part Xii of the Companies

Act, 1990 and had a final closing on 13 January 2009.

the Class A shares, Class B shares and Class o shares of

the Company were admitted to the official List of the

irish stock exchange on 8 november 2007, 1 february

2008 and 16 July 2007, respectively.

the prospectus was reissued on 20 July 2010 to include

updated financial information in accordance with the

prospectus (Directive 2003/71/eC) regulations 2005. sup-

plements to the prospectus were issued on 21 April 2011

and 1 July 2011. these supplements were to allow the

Company to issue guarantees under restricted conditions

relating to the structuring of investments and to provide

for the appointment of Credit suisse international, Dub-

lin Branch, as Custodian to the Company, respectively.

Investment objective

the objective of the Company is to provide investors with

attractive long-term capital appreciation from a diversi-

fied private equity portfolio mainly focused on the Asia-

pacific region.

the Company’s portfolio shall comprise substantially of

Asia-pacific buyout and growth capital funds. the target

is to allocate 80% of the subscribed capital to leading

buyout and growth capital private equity partnerships.

finally, CApe’s portfolio may comprise up to 20% in ven-

ture fund investments and up to 20% in secondary private

equity partnership investments.

the Company shall not invest more than 15% of sub-

scribed capital in any one underlying primary private

equity partnership. the Company’s investment in any one

primary private equity partnership shall not equal to

more than 20% of the targeted fund size of such primary

private equity partnership.

Background to the Company | Crown AsiA-pACifiC privAte equity Annual report 2014 05


06 Crown AsiA-pACifiC privAte equity Annual report 2014 | Investment Advisor’s report

investment Advisor’s report

CR

OW

N A

SIA

-PA

CIF

IC P

RIV

ATE

EQ

UIT

Y

23 Investors

23 Primary investments

8 Secondary transactions(14 Partnerships)

7621) Companies

Investors Fund-of-funds Private equitypartnerships

Participationsin companies

NOTE:1) Based on the latest available financial statements from the underlying private equity partnerships, i.e primarily 30 september 2014.

PORTFOLIO STRUCTURE AS OF 31 DECEMBER 2014

NAV SUMMARY

CApe’s net asset value (“nAv”) as of 31 December 2014

amounts to usD 290.6 million, a decrease of usD 2.9

million compared to the year ended 31 December 2013.

PORTFOLIO STRUCTURE


PORTFOLIO REVIEW AT PARTNERSHIP LEVEL

Commitments

CApe has committed usD 298.7 million (82.6% of total

commitments) to 23 primary private equity partnerships

and usD 62.6 million (17.4% of total commitments) to

eight secondary transactions comprising 14 private equity

partnerships. the total commitments of usD 361.3 million

amount to 96.9% of the investors’ total subscribed capital

of usD 372.8 million.

Investment Advisor’s report | Crown AsiA-pACifiC privAte equity Annual report 2014 07

2007 47%

20022%

20031%

2005 4%

20011%

2008 33%

2009 3%2010 6%

2011 3%

China 38%

Other 6%

India 24%

Japan 5%

Pan-Asian 19%

South-East Asia6%

Australia2%

500 to 2,000 45%

>2,000 17%

<500 38%

Secondarytransactions 17%

Primaryinvestments 83%

COMMITMENTS STRUCTURE1)

INVESTMENT TYPE

VINTAgE YEARS

FUND SIZES (IN USD MILLIONS)

gEOgRAPHY2)

NOTES:1) Based on CApe’s commitments in private equity partnerships.2) Based on the stated geographical investment focus of the private equity partnerships.

<0.5%:

•1999

•2004


PORTFOLIO REVIEW AT COMPANY LEVEL1)

CApe has indirectly invested in 762 companies of which

500 are still active and 262 have been fully realized.

Crown AsiA-pACifiC privAte equity has a specific

geographical focus on the Asia-pacific region but no

industrial target allocation. it seeks broad diversification

across this dimension.

NOTES:1) Based on the latest available financial statements from the underlying private equity partnerships, i.e. primarily 30 september 2014.2) Geography refers to the location of the company’s head office.3) fair market value (“fMv”) refers to the valuations ascribed to the various portfolio companies of the underlying private equity partnerships.

INVESTMENT ACTIVITY

on 13 July 2011, the commitment period for CApe ended.

LgT Capital Partners Limited

Pfaeffikon, Switzerland

tycho sneyers

robert schlachter

12 February 2015

08 Crown AsiA-pACifiC privAte equity Annual report 2014 | Investment Advisor’s report

China 50%

Other 6%

India 19%

Japan 4%Australia 2%

US 8%

Indonesia 7%

Singapore 2%Brazil 2%

DIVERSIFICATION BY gEOgRAPHY2) (FMV)3)

Industrialproducts 19%

Consumer services 12%

Industrial services 9%

Life sciences 5%

Consumer products 13%

Real estate2%

Telecom2%

Healthcare 3%

IT 12%

Cleantech 4%

Financial 18%

1% Media

DIVERSIFICATION BY INDUSTRY

(FMV)3)


Directors’ report | Crown AsiA-pACifiC privAte equity Annual report 2014 09

the Directors submit their report together with the au-

dited financial statements, which comprise the statement

of comprehensive income, balance sheet, statement of

changes in net assets attributable to shareholders, the cash

flow statement, the portfolio of investments and the

related notes, for the year ended 31 December 2014 which

may be available on the website of LGt Capital partners

Limited and/or any regulatory website as may be required

by law and/or regulations.

Statement of Directors’ responsibilities

the Directors are responsible for preparing the annual

report and the audited financial statements in accord-

ance with applicable irish law and international financial

reporting standards (“ifrs”) as adopted by the eu. irish

company law requires the Directors to prepare audited

financial statements for each financial year that give a

true and fair view of the state of affairs of the Company

and of the profit or loss of the Company for the year. in

preparing the audited financial statements, the Directors

are required to:

> select suitable accounting policies and then apply

them consistently;

> make judgements and estimates that are reasonable

and prudent; and

> prepare the financial statements on the going concern

basis unless it is inappropriate to presume that the

Company will continue in business.

the Directors confirm that they have complied with the

above requirements in preparing the audited financial

statements.

the Directors are responsible for keeping proper books of

account which disclose with reasonable accuracy at any

time the financial position of the Company and to enable

them to ensure that the audited financial statements are

prepared in accordance with ifrs as adopted by the eu

and comply with the irish Companies Acts, 1963 to 2013

(the “Companies Acts”). they are also responsible for

safeguarding the assets of the Company and hence for

taking reasonable steps for the prevention and detection

of fraud and other irregularities.

under the Central Bank of ireland’s non-uCits (undertak-

ing for Collective investment in transferable securities)

notices, the Directors are required to entrust the assets of

the Company to the Custodian for safe-keeping.

the Directors are responsible for the integrity of the an-

nual report and audited financial statements for the year

ended 31 December 2014 which are included on the web-

site of LGt Capital partners Limited only. notwithstanding

anything else contained in this report, the Directors are

not responsible for the maintenance and integrity of the

annual report and audited financial statements for the

year ended 31 December 2014 which may be included on

any regulatory authority website as may be required by

law and/or regulations.

furthermore, if users of this annual report and audited

financial statements are concerned with the inherent

risks arising from electronic data communications, they

are advised to refer to the hard copy of the annual report

and audited financial statements to confirm the infor-

mation included in the annual report and audited finan-

cial statements presented on either the website of LGt

Capital partners Limited and/or any regulatory authority.

the Company’s financial statements will be submitted

to the Central Bank of ireland and the Companies An-

nouncements services of the irish stock exchange (the

“ise”). Any updated version of the prospectus (to include

all audited annual accounts of the Company) may be pub-

lished in accordance with part 8 of the prospectus (Direc-

tive 2003/71/eC) regulations 2005 on the website of the

Central Bank of ireland and be deemed available to the

public accordingly.

the Directors have taken the view that the fund is to

be considered outside the scope of the eu’s Alternative

investment fund Managers Directive (“AifMD”) on the

basis that it is closed to new commitments from investors

(13 January 2009) and to investments (13 July 2011) as

provided for in AifMD. the Directors will conduct the

business of the fund accordingly and it is not proposed to

update the fund documentation to comply with any

additional disclosure requirements under AifMD, unless

instructed otherwise by the relevant authorities.

Directors’ report


10 Crown AsiA-pACifiC privAte equity Annual report 2014 | Directors’ report

Responsibility statement

in accordance with the transparency (Directive 2004/109/

eC) regulations 2007 each of the Directors, in their role as

directors, and whose names appear on page 4 confirm

that, to the best of their knowledge and belief:

> the Company’s Annual report and Audited financial

statements is prepared in accordance with ifrs as

adopted by the eu, as applied in accordance with the

Companies Acts, 1963 to 2013, and gives a true and fair

view of the assets, liabilities and financial position of

the Company as at 31 December 2014 and its profit for

the year then ended; and

> the Directors’ report includes a fair review of the de-

velopment and performance of the business and the

position of the Company, together with a description

of the principal risks and uncertainties that it faces.

Corporate governance statement

the following corporate governance statement is sourced

from the irish funds industry Association (the “ifiA”) and

is in compliance with european Communities (Directive

2006/46/eC) regulations (s.i. 450 of 2009 and s.i. 83 of

2010).

on 15 february 2011, the Board of Directors formally

adopted the above-mentioned corporate governance

statement which was applied by the Company through-

out 2014.

on 29 March 2012, the Board formally adopted a volun-

tary Corporate Governance Code for Collective invest-

ment schemes & Management Companies (the “volun-

tary Code”) issued on 14 December 2011 by the ifiA.

As required by the voluntary Code Konrad Baechinger

was formally appointed as independent Director on 1 June

2013.

Although there is no specific statutory corporate govern-

ance statement applicable to irish collective investment

schemes whose shares are admitted to trading on the ise,

the Company is subject to corporate governance practices

imposed by:

(i) the Companies Acts;

(ii) the Memorandum and Articles of Association of the

Company (the “Articles of Association”);

(iii) the Central Bank of ireland in their non-uCits notices

and Guidance notes; and

(iv) the ise through the ise Code of Listing requirements

and procedures.

the information referred to in points (i) to (iv) is available

for inspection at the registered office of the Company at

segrave House, 19/20 earlsfort terrace, Dublin 2.

the Company is responsible for establishing and main-

taining adequate internal control and risk management

systems of the Company in relation to the financial re-

porting process. such systems are designed to manage

rather than eliminate the risk of error or fraud in achiev-

ing the Company’s financial reporting objectives and can

only provide reasonable and not absolute assurance

against material misstatement or loss.

the Company has procedures and internal controls in place

to ensure proper execution, reporting and maintenance of

transaction data using data capture and design-specific

financial software and risk based review processes to en-

sure all relevant accounting records are properly main-

tained and are readily available, including production of

annual and semi-annual financial statements. the annual

and semi-annual financial statements of the Company are

required to be approved by the Board of Directors of the

Company and filed with the Central Bank of ireland and

the ise. the statutory financial statements are required to

be audited by independent auditors who report annually

to the Board on their findings. there is no requirement for

the semi-annual financial statements to be audited.

the Board evaluates and discusses significant accounting

and reporting issues as the need arises.

the convening and conduct of shareholders’ meetings are

governed by the Articles of Association and the Compa-

nies Acts. Although the Directors may convene an extra-

ordinary general meeting of the Company at any time,

the Directors are required to convene an annual general

meeting of the Company within 18 months of incorpora-

tion and 15 months of the date of the pre vious annual

general meeting thereafter. not less than twenty one

days notice of every annual general meeting and any

meeting convened for the passing of a special resolution

must be given to shareholders.



three shareholders present either in person or by proxy

constitute a quorum at a general meeting. on a show of

hands, every participating shareholder who is present in

person or by proxy shall have one vote and all manage-

ment shareholders who are present in person or by proxy

shall have one vote in respect of all the management

shares. on a poll every shareholder present in person or

by proxy shall be entitled to one vote in respect of each

participating share held by him and one vote in respect of

all of the management shares held by him. the chairman

of a general meeting of the Company or at least five

shareholders present or any shareholder or shareholders

present representing at least one tenth of the shares in

issue having the right to vote at such meeting may de-

mand a poll.

An ordinary resolution of the Company (or of the share-

holders of a particular sub-fund or class of participating

shares) requires a simple majority of the votes cast by the

shareholders voting in person or by proxy at the meeting

at which the resolution is proposed. A special resolution

of the Company (or of the shareholders of a sub-fund or

a particular class of participating shares) requires a major-

ity of not less than 75% of the total number of votes cast

in general meeting in order to pass a special resolution

including a resolution to amend the Articles of Associa-

tion.

unless otherwise determined by an ordinary resolution of

the Company in general meeting, the number of Direc-

tors may not be less than two nor more than twelve. Cur-

rently, the Board of Directors of the Company is composed

of six Directors, being those listed in these financial state-

ments. the Directors shall have power at any time and

from time to time to appoint any person to be a Director,

either to fill a casual vacancy or as an addition to the

existing Directors. Any Director so appointed shall hold

office only until the following annual general meeting

and shall then be eligible for re-election. the Company at

any general meeting at which a Director retires or is re-

moved shall fill the vacated office by electing a Director

unless the Company shall determine to reduce the num-

ber of Directors. Directors are not required to retire by

rotation. Any Director may appoint any person (including

another Director) to be his alternate Director and may

in like manner at any time terminate such appointment.

save as otherwise provided in the Articles of Association,

an alternate Director shall be deemed for all purposes to

be a Director, shall alone be responsible for his own acts

and defaults and shall not be deemed to be the agent of

the Director appointing him.

the business of the Company is managed by the Directors

insofar as the Companies Acts or Articles of Association

do not require its approval at a general meeting of the

Company. the Directors are generally and uncondition-

ally authorized to exercise all powers of the Company to

allot relevant securities up to an amount equal to the au-

thorized but as yet unissued share capital of the Compa-

ny. the Directors have the discretion to make distributions

in the form of share repurchase or dividends, provided

that such method of distribution shall apply uniformly to

shareholders. A Director may, and the secretary on the

request of a Director will, at any time summon a meeting

of the Directors. questions arising at any meeting of the

Directors are determined by a majority of votes. in the

case of an equality of votes, the Chairman has a second or

casting vote. the quorum necessary for the transaction of

business of the Directors may be fixed by the Directors,

and unless so fixed at any other number shall be two.

Connected parties

the Board of Directors is satisfied that there are arrange-

ments (evidenced by written procedures) in place, to

ensure that the obligations set out in paragraph one of

nu 2.10 are applied to all transactions with connected

parties; and the Board is satisfied that transactions with

connected parties entered into during the year complied

with the obligations set out in this paragraph.

Company structure

the Company has in issue three participating share classes

(“A”, “B” and “o”) with equal rights and each class is sub-

ject to different management fees and/or performance

fees as described in the prospectus.

in respect of the voting rights of the Company, every par-

ticipating shareholder or holder of management shares

who is present in person or by proxy shall have one vote

on a show of hands and, on a poll, every participating

shareholder present in person or by proxy shall be enti-

tled to one vote in respect of each share held by him,

while holders of management shares shall have one vote

only in respect of all management shares held.



tivities and associated financing undertaken pursuant to

this objective involves certain inherent risks.

During the financial year to 31 December 2014, the Com-

pany generated a profit of usD 43.7 million which, in

addition to the net capital distributed in the year, resulted

in net assets of the Company of usD 290,564,023, com-

pared to usD 293,491,408 for the previous year ended

31 December 2013.

the Company’s profits for 2014 are usD 39.1 million up

from usD 4.6 million in 2013 mainly due to the gains ex-

perienced on primary investments made in 2007 and 2008.

the top ten investments represent almost 63.0% of the

investment gains while five investments represent 89.2%

of the investment losses incurred in 2014.

Current year investment gains are mainly focused on 2007

and 2008 vintage investments while 55.4% of investment

gains arise from investments in the small/middle market

buyout space and the net gains arise predominantly in the

Asia-pacific region.

An increase in the distributions received from investments

during 2014 allowed the Company to distribute usD 58.9

million to investors (or 15.8% of subscribed capital) com-

pared to usD 43.6 million (or 11.7% of subscribed capital)

in 2013. the Company called usD 12.3 million (or 3.3% of

subscribed capital) during the year, bringing investors’

contributed capital to 89.9% of their total subscriptions.

At 31 December 2014 the total return for CApe is 14.9%1).

the Company has a credit facility with LGt Bank (ireland)

Limited, further details of which are provided in note 12.

the credit facility is used to fund short-term investment

commitments that are subsequently covered by calls re-

ceived from the Company’s investors.

the Directors do not propose to change the current strat-

egy or investment objectives of the Company for the fore-

seeable future.

As of 31 December 2014, the percentage of total shares in

issue is 35.6%, 11.5% and 52.9% for the A, B and o class

of shares respectively. the details of any significant inves-

tors in the Company are disclosed in note 11 to the finan-

cial statements.

A transfer of shares will not be recognized if the trans-

feree is not a qualifying investor. in addition, at the dis-

cretion of the Directors, a transfer of shares may not be

recognized or registered if such transfer would result in

the occurrence of certain events as disclosed in the pro-

spectus.

An amendment to the Company’s Articles of Association,

including the variation of the rights attached to any class

of shares, can only be approved by means of a special

resolution of the shareholders and with the prior consent

of the Central Bank of ireland.

Books of account

the measures taken by the Directors to secure compliance

with the Company’s obligation to keep proper books of

account are the use of appropriate systems and proce-

dures which are carefully implemented by the Adminis-

trator. the books of account are kept at the registered

office of the Company.

Review of business and future developments

the Crown Asia-pacific private equity plc fund started

committing on 13 July 2007. As of 31 December 2014, the

Company has committed a total of usD 361,316,729 to

both primary investments and secondary transactions. An

overview of the commitments made to date is contained

in the investment Advisor’s report. A summary of the port-

folio of investments is included in these financial state-

ments but a more detailed analysis is available from the

Administrator on request. the Company’s investment ob-

jective is to provide shareholders with attractive long-term

capital appreciation by investing in a diversified portfolio

of primary and secondary partnership investments that

focus on private equity transactions in companies that are

based or have their main business operations in the Asia-

pacific region. the holding of investments, investing ac-

NOTE:1) the total return percentage represents the current year’s movement, excluding movements in net contributed capital, in the net asset value.



Risk management objectives and policies

the Company is exposed to a variety of financial risks in-

cluding: market, currency, interest rate, credit and liquid-

ity risks and attributes great importance to professional

risk management. the Company has investment guide-

lines that set out its overall business strategies, its toler-

ance for risk and its general risk management philosophy

and has established processes to monitor and control the

economic impact of these risks. the investment Manager

provides the Company with investment recommenda-

tions that are consistent with the Company’s objectives.

the nature of the Company’s risks and the actions taken

to manage these risks are analyzed in more detail in note

14 to these financial statements.

Results and distributions

the results for the year are set out in the statement of

comprehensive income.

Distributions of usD 8,574,400, usD 7,828,800, usD

13,048,000, usD 10,438,400, usD 8,947,200 and usD

10,065,600 were made on 14 March 2014, 30 April 2014,

21 May 2014, 29 July 2014, 15 september 2014 and

22 December 2014 , respectively, by way of share repur-

chase.

ERISA declaration

the Company does not constitute “plan assets” as de-

fined under the employee retirement income security

Act (“erisA”) as less than 25% of the Company is owned

by “benefit plan investors”.

Events since the year end

events since the year end are disclosed in note 17 to the

financial statements.

Directors

the Directors have the power to appoint any person to be

a Director. Any Director so appointed shall hold office

until the next annual general meeting and shall then be

eligible for re-election. Directors are not required to re-

tire by rotation. A Director must, however, be a person

approved for that purpose by the Central Bank of ireland.

the Company is an investment company with variable

capital incorporated under the Companies Acts, 1963 to

2013, and is authorized by the Central Bank of ireland as

a designated investment company. the Directors may

take all measures necessary to the extent permitted by

the Memorandum and Articles of Association, the pro-

spectus and the notices issued by the Central Bank of ire-

land to carry out the Company’s objectives.

At the discretion of the Directors, distributions may be

made in the form of share repurchases or dividends, pro-

vided that such method of distribution shall apply uni-

formly to all shareholders.

the names of the persons who were Directors at any time

during the year ended 31 December 2014 are set out

under Directors and other information on page 4. All

Directors served for the entire year, unless otherwise stat-

ed and their fees and expenses are disclosed in note 12.

Directors’ and Secretary’s interests

the Directors and secretary and their families had no

direct interests in the shares of the Company at 31 De-

cember 2014. through their participations in co-invest-

ment agreements with LGt Capital invest Limited, certain

Directors have an indirect interest in the shares of the

Company. Certain current Directors of the Company are

or have been directors of LGt Capital partners (ireland)

Limited, LGt Bank (ireland) Limited and LGt fund Manag-

ers (ireland) Limited during the year as follows:

LgT

Cap

ital

Par

tner

s (I

rela

nd

) Li

mit

ed

LgT

Ban

k (I

rela

nd

) Li

mit

ed

LgT

Fun

d M

anag

ers

(Ire

lan

d)

Lim

ited

paul Garvey X X X

robert schlachter X X

tycho sneyers X

Desmond tobin X X X

no Director had at any time during the year a material

interest in any contract of significance, subsisting during

or at the end of the year, in relation to the business of the

Company.



All Directors are non-executive directors as the manage-

rial functions have been delegated to other entities. Kon-

rad Baechinger became an independent director from

1 June 2013.

Independent Auditors

pricewaterhouseCoopers have expressed their willingness

to continue in office in accordance with section 160(2) of

the Companies Act, 1963.

On behalf of the Board

Desmond tobin

paul Garvey

12 February 2015


Custodian’s report | Crown AsiA-pACifiC privAte equity Annual report 2014 15

Report of the Custodian to the Shareholders

we have enquired into the conduct of Crown Asia-pacific

private equity plc (the “Company”) for the year ended

31 December 2014 in our capacity as Custodian to the

Company.

this report including the opinion has been prepared for,

and solely for, the shareholders in the Company as a body,

in accordance with the Central Bank of ireland’s non-

uCits notice 7, and for no other purpose. we do not, in

giving this opinion, accept or assume responsibility for

any other purpose or to any other person to whom this

report is shown.

Responsibilities of the Custodian

our duties and responsibilities are outlined in the Central

Bank of ireland’s non-uCits notice 7. one of those duties

is to enquire into the conduct of the Company in each

annual accounting period and report thereon to the

shareholders.

our report shall state whether, in our opinion, the Com-

pany has been managed in that period, in accordance

with the provisions of the Company’s Memorandum and

Articles of Association and the non-uCits notices. it is the

overall responsibility of the Company to comply with

these provisions. if the Company has not so complied, we

as Custodian must state why this is the case and outline

the steps which we have taken to rectify the situation.

Basis of Custodian opinion

the Custodian conducts such reviews as it, in its reasona-

ble opinion, considers necessary in order to comply with

its duties as outlined in non-uCits notice 7 and to ensure

that, in all material respects, the Company has been man-

aged: (i) in accordance with the limitations imposed on its

investment and borrowing powers by the provisions of its

constitutional documentation and the appropriate regu-

lations; and (ii) otherwise in accordance with the Com-

pany’s constitutional documentation and the appropriate

regulations.

Opinion

in our opinion, the Company has been managed during

the year, in all material respects:

> in accordance with the limitations imposed on the

investment and borrowing powers of the Company by

the Memorandum and Articles of Association and by

the Central Bank of ireland under the powers granted

to it by the Companies Act, 1990 part Xiii, and the in-

vestment funds, Companies and Miscellaneous provi-

sions Act, 2005; and

> otherwise in accordance with the provisions of the

Memorandum and Articles of Association, the Com-

panies Act, 1990 part Xiii, and the investment funds,

Companies and Miscellaneous provisions Act, 2005.

Credit Suisse International, Dublin Branch

Dublin

12 February 2015

Custodian’s report to the members of Crown Asia-Pacific Private Equity plc


we have audited the financial statements of the Compa-

ny for the year ended 31 December 2014 which comprise

the statement of comprehensive income, balance sheet,

statement of changes in net assets attributable to share-

holders, the cash flow statement, the portfolio of invest-

ments and the related notes. the financial reporting

framework that has been applied in their preparation is

irish law and international financial reporting standards

(ifrss) as adopted by the european union.

Respective responsibilities of Directors and Auditors

As explained more fully in the statement of Directors’ re-

sponsibilities set out on page 9, the Directors are respon-

sible for the preparation of the financial statements giv-

ing a true and fair view. our responsibility is to audit and

express an opinion on the financial statements in accord-

ance with irish law and international standards on Audit-

ing (uK and ireland). those standards require us to com-

ply with the Auditing practices Board’s ethical standards

for Auditors.

this report, including the opinions, has been prepared for

and only for the Company’s members as a body in accord-

ance with section 193 of the Companies Act, 1990 and for

no other purpose. we do not, in giving these opinions,

accept or assume responsibility for any other purpose or

to any other person to whom this report is shown or into

whose hands it may come save where expressly agreed by

our prior consent in writing.

independent Auditors’ reportScope of the audit of the financial statements

An audit involves obtaining evidence about the amounts

and disclosures in the financial statements sufficient to

give reasonable assurance that the financial statements

are free from material misstatement, whether caused by

fraud or error. this includes an assessment of: whether

the accounting policies are appropriate to the Company’s

circumstances and have been consistently applied and ad-

equately disclosed; the reasonableness of significant ac-

counting estimates made by the Directors; and the overall

presentation of the financial statements. in addition, we

read all the financial and non financial information in the

annual report to identify material inconsistencies with

the audited financial statements and to identify any in-

formation that is apparently materially incorrect based

on, or materially inconsistent with, the knowledge ac-

quired by us in the course of performing the audit. if we

become aware of any apparent material misstatements or

inconsistencies, we consider the implications for our re-

port.

Opinion on financial statements

in our opinion the financial statements:

> give a true and fair view, in accordance with ifrss

as adopted by the european union, of the state of the

Company’s affairs as at 31 December 2014 and of their

results and cash flows for the year then ended; and

> have been properly prepared in accordance with the

requirements of the Companies Acts 1963 to 2013.

to the members of Crown Asia-Pacific Private Equity plc

16 Crown AsiA-pACifiC privAte equity Annual report 2014 | Independent Auditors’ report


Independent Auditors’ report | Crown AsiA-pACifiC privAte equity Annual report 2014 17

Matters on which we are required to report by the Com-

panies Acts 1963 to 2013

> we have obtained all the information and explana-

tions which we consider necessary for the purposes of

our audit.

> in our opinion, proper books of account have been

kept by the Company.

> the financial statements are in agreement with the

books of account.

> in our opinion, the information given in the Directors’

report is consistent with the financial statements.

Matters on which we are required to report by exception

we have nothing to report in respect of the provisions in

the Companies Acts 1963 to 2013 which require us to re-

port to you if, in our opinion, the disclosures of Directors’

remuneration and transactions specified by law are not

made.

Fiona de Búrca

for and on behalf of

PricewaterhouseCoopers

Chartered Accountants and Statutory Audit Firm

Dublin

12 February 2015

NOTE:the financial statements are published at www.lgt-capital-partners.com. the Directors together with the investment Manager are responsible for the maintenance and integrity of the website as far as it relates to Crown Asia-pacific private equity plc. the work carried out by the Auditors does not involve consideration of the maintenance and integrity of the website and accordingly, the Auditors accept no responsibility for any changes that have occurred to the financial statements presented on the website. Legislation in the republic of ireland governing the presentation and dissemination of the financial statements may differ from legisla-tion in other jurisdictions.


statement of comprehensive incomeFOR THE YEAR ENDED 31 DECEMBER 2014

Amounts are reported in USD Note 2014 2013

Operating income

interest income 597,267 334,522

Dividend income 1,744,998 535,733

Losses on foreign exchange, net (7,310) (30,340)

net gain on investments at

fair value through profit or loss 3 46,254,047 6,925,924

Total net income 48,589,002 7,765,839

Operating expenses

investment management fee 5 (851,754) (892,766)

performance fee 5 (561,192) 1,628,244

Administration fee 5 (178,987) (186,204)

Custodian and trustee fees 5 (118,778) (121,804)

Audit fee 5 (39,195) (27,703)

partnership expenses 4 (2,997,153) (3,316,100)

other operating expenses (127,640) (124,963)

Total operating expenses (4,874,699) (3,041,296)

Operating profit 43,714,303 4,724,543

finance costs (29,192) (70,564)

Profit before taxation 43,685,111 4,653,979

withholding tax (12,496) (55,740)

Profit for the year 43,672,615 4,598,239

TOTAL COMPREHENSIVE PROFIT FOR THE YEAR 43,672,615 4,598,239


Desmond tobin

paul Garvey

12 February 2015

the accompanying notes are an integral part of the financial statements.

All amounts arose solely from continuing operations. there are no gains and losses other than those dealt with in the

statement of comprehensive income.

18 Crown AsiA-pACifiC privAte equity Annual report 2014 | Statement of comprehensive income


Balance sheetAS OF 31 DECEMBER 2014

Amounts are reported in USD Note 2014 2013

Assets

Current assets

– Cash and cash equivalents 6 8,759,084 4,359,780

– Accrued income and other receivables 7 14,745 16,204

Total current assets 8,773,829 4,375,984

Non-current assets

– investments at fair value through profit or loss 8 282,705,364 294,976,462

Total non-current assets 282,705,364 294,976,462

TOTAL ASSETS 291,479,193 299,352,446

Capital and reserves attributable to shareholders

– share capital 11 152,848,000 199,448,000

– retained earnings 137,716,023 94,043,408

Net assets attributable to shareholders 290,564,023 293,491,408

Current liabilities

– Accrued expenses and other payables 9 353,978 361,038

– Due to banks 10 – 5,500,000

Total current liabilities 353,978 5,861,038

Non-current liabilities

– Accrued expenses and other payables 9 561,192 –

Total non-current liabilities 561,192 –

TOTAL LIABILITIES 291,479,193 299,352,446


NET ASSET VALUE BY SHARE CLASS (“NAV”)1)

As of 31 December 2014 As of 31 December 2013

Shares issued Total NAV(in USD)

Number of shares in issue

NAV per share(in USD)

Total NAV(in USD)



“A” 98,500,205 595,063.16 165.53 100,202,007 699,461.91 143.26

“B” 31,277,272 191,797.90 163.07 31,690,387 226,375.62 139.99

“o” 160,786,546 885,789.27 181.52 161,599,014 1,032,452.86 156.52

Total 290,564,023 1,672,650.33 293,491,408 1,958,290.39

Balance sheet | Crown AsiA-pACifiC privAte equity Annual report 2014 19


Desmond tobin paul Garvey

12 February 2015

As of 31 December 2012

Shares issued Total NAV(in USD)



“A” 107,909,499 769,218.55 140.28

“B” 34,762,516 249,429.28 139.37

“o” 174,926,754 1,130,327.46 154.76

Total 317,598,769 2,148,975.29

NOTE:1) the nAv per share in the table above may be different to individual investors’ nAv per share as disclosed in their capital account statements. this is because the

nAv per share in the table above is based on average figures for all investors in each individual share class.


statement of changes in net assets attributable to shareholdersFOR THE YEAR ENDED 31 DECEMBER 2014

Amounts are reported in USD Share capital

Retained earnings

Total

At 1 January 2013 228,153,600 89,445,169 317,598,769

total comprehensive profit for the year – 4,598,239 4,598,239

issue of shares 14,912,000 – 14,912,000

repurchase of own shares (43,617,600) – (43,617,600)

Net (decrease)/increase for the year (28,705,600) 4,598,239 (24,107,361)

At 31 December 2013 199,448,000 94,043,408 293,491,408

At 1 January 2014 199,448,000 94,043,408 293,491,408

total comprehensive profit for the year – 43,672,615 43,672,615

issue of shares 12,302,400 – 12,302,400

repurchase of own shares (58,902,400) – (58,902,400)

Net (decrease)/increase for the year (46,600,000) 43,672,615 (2,927,385)

At 31 December 2014 152,848,000 137,716,023 290,564,023


20 Crown AsiA-pACifiC privAte equity Annual report 2014 | Statement of changes in net assets attributable to shareholders


Cash flow statementFOR THE YEAR ENDED 31 DECEMBER 2014

Amounts are reported in USD 2014 2013

Cash flows from/(used in) operating activities

purchase of investments (6,418,556) (10,563,872)

proceeds from return of capital in investments 30,852,557 19,702,964

proceeds from realized gains on investments 34,091,144 22,072,495

Dividend income 1,744,998 535,734

withholding tax (12,496) (55,740)

interest received 597,287 334,519

operating expenses paid (4,315,843) (4,698,593)

Net cash flows from operating activities 56,539,091 27,327,507

Cash flows from/(used in) financing activities

interest paid (32,477) (70,554)

proceeds from bank loans 5,100,000 14,000,000

repayments of bank loans (10,600,000) (11,500,000)

payments for repurchase of own shares (46,600,000) (28,705,600)

Net cash flows used in financing activities (52,132,477) (26,276,154)

Net increase in cash and cash equivalents 4,406,614 1,051,353

Cash and cash equivalents at beginning of year 4,359,780 3,338,767

exchange losses on cash and cash equivalents (7,310) (30,340)

CASH AND CASH EQUIVALENTS AT END OF YEAR 8,759,084 4,359,780


Cash flow statement | Crown AsiA-pACifiC privAte equity Annual report 2014 21


22 Crown AsiA-pACifiC privAte equity Annual report 2014 | Notes to the financial statements

notes to the financial statements1. Summary of significant accounting policies

the principal accounting policies applied in the prepara-

tion of these financial statements are set out below.

these policies have been consistently applied to all the

years presented, unless otherwise stated.

(a) Basis of preparation

the financial statements of the Company have been pre-

pared in accordance with international financial report-

ing standards (“ifrs”) as adopted by the eu, and irish

statute comprising the Companies Acts, 1963 to 2013.

the financial statements have been prepared under the

historical cost convention, as modified by the revaluation

of financial assets and liabilities held at fair value through

profit or loss.

the preparation of financial statements in conformity

with ifrs as adopted by the eu requires the use of ac-

counting estimates. it also requires the Board of Directors

to exercise its judgement in the process of applying the

Company’s accounting policies.

the areas involving a higher degree of judgement or

complexity, or where assumptions and estimates are sig-

nificant to the financial statements are disclosed in note

1(b) and note 2.

Standards and amendments to published standards that

are mandatory for the financial year beginning on or

after 1 January 2014.

there are no ifrs or international financial reporting

interpretations Committee (“ifriC”) interpretations that

are effective for the first time for the financial year begin-

ning on or after 1 January 2014 that would be expected

to have a material impact on the Company.

New standards, amendments and interpretations effective

after 1 January 2015 and have not been early adopted

A number of new standards, amendments to standards

and interpretations are effective for annual periods be-

ginning after 1 January 2015, and have not been applied

in preparing these financial statements. none of these are

expected to have a significant effect on the financial

statements of the Company.

(b) Use of estimates

the preparation of financial statements in conformity

with ifrs requires management to make estimates and as-

sumptions that affect the reported amounts of assets and

liabilities and disclosure of contingent assets and liabilities

at the date of the financial statements and the reported

amounts of revenues and expenses during the reporting

year. the estimates and associated assumptions are based

on historical experience and various other factors that are

believed to be reasonable under the circumstances, the

results of which form the basis of making the judgements

about carrying values of assets and liabilities that are not

readily apparent from other sources. Actual results could

differ from these estimates (see note 2 also).

(c) Foreign currency translation

(i) functional and presentation currency

items included in the Company’s financial statements

are measured using the currency of the primary eco-

nomic environment in which it operates (the “func-

tional Currency”). this is the us Dollar, which reflects

the Company’s primary activity of investing in assets

whose base currency is predominantly the us Dollar.

the Company has adopted the us Dollar as its presen-

tation currency. foreign currency assets and liabilities

are translated into us Dollar at the exchange rates rul-

ing at the balance sheet date.

(ii) transactions and balances

foreign currency transactions are translated into us

Dollar using the exchange rates prevailing at the dates

of the transactions. foreign exchange gains and losses

resulting from the settlement of such transactions and

from the translation at year end exchange rates of as-

sets and liabilities denominated in foreign currencies

are recognized in the statement of comprehensive in-

come. translation differences on non-monetary items,

such as financial assets and liabilities held at fair value

through profit or loss, are reported as part of the fair

value gain or loss.


Notes to the financial statements | Crown AsiA-pACifiC privAte equity Annual report 2014 23

(d) Cash and cash equivalents

Cash and cash equivalents comprise demand, call and

term deposits with a maturity of three months or less. for

the purpose of the cash flow statement, cash and cash

equivalents comprise all cash, short-term deposits and

other money market instruments, net of short-term over-

drafts, with a maturity of three months or less. Cash and

cash equivalents are recorded at nominal value. Bank

overdrafts, if any, are shown as current liabilities in the

balance sheet.

(e) Due from and due to brokers

Amounts due from and to brokers represent receivables

for securities sold and payables for securities purchased

that have been contracted for but not yet settled or deliv-

ered on the balance sheet date, respectively. Amounts

due from and to brokers are recorded initially at fair val-

ue and subsequently measured at amortized cost using

the effective interest method.

(f) Borrowings

Borrowings are recognized initially at fair value, net of

transaction costs incurred. Borrowings are subsequently

stated at amortized cost; any difference between the pro-

ceeds and the redemption value is recognized in the in-

come statement over the period of the borrowing using

the effective interest method. Borrowings are shown as

current liabilities unless the Company has the uncondi-

tional right to defer settlement for at least 12 months

after the balance sheet date. interest expense is recog-

nized on the basis of the effective interest method and is

included in finance costs.

(g) Financial assets and liabilities at fair value through

profit or loss

the Company, in accordance with iAs 39, classifies its

investments as financial assets and liabilities at fair val-

ue through profit or loss category. the category of fi-

nancial assets and liabilities at fair value through profit

or loss comprises:

> financial instruments held for trading. these include

futures, forward contracts, options and swaps; and

> financial instruments designated at fair value through

profit or loss upon initial recognition. these include

financial assets that are not held for trading purposes

and which may be sold.

financial assets that are classified as loans and receivables

include balances due from brokers and accounts receiv-

able.

financial liabilities that are not at fair value through prof-

it or loss include balances due to brokers and accounts

payable.

(i) recognition and derecognition

the Company recognizes financial assets and financial li-

abilities on the date it becomes a party to the contractual

provisions of the instrument.

financial assets are derecognized when the rights to re-

ceive cash flows from the investments have expired or the

Company has transferred substantially all risks and re-

wards of ownership.

financial liabilities are derecognized when they are extin-

guished, that is, when the obligation specified in the con-

tract is discharged, cancelled or expires.

regular-way purchases and sales of investments are rec-

ognized on the trade date. from this date, any gains and

losses arising from changes in fair value of the financial

assets or financial liabilities are recorded.

(ii) Measurement

financial instruments are measured initially at fair value.

transaction costs on financial assets and financial liabili-

ties at fair value through profit or loss are expensed im-

mediately.

subsequent to initial recognition, all instruments classi-

fied at fair value through profit or loss are measured at

fair value with changes in their fair value recognized in

the statement of comprehensive income.

(iii) fair value measurement principles

Listed securities

the fair value of financial assets and liabilities traded in

active markets (such as publicly traded derivatives and

trading securities) are based on quoted market prices at

the close of trading on the year end date. the Board of

Directors considers markets to be active when transac-


tions are occurring frequently enough on an ongoing ba-

sis to obtain reliable pricing information on an ongoing

basis. if observed transactions are no longer regularly oc-

curring, or the only observed transactions are distressed/

forced sales, the market would no longer be considered

active. in cases where it is judged that there is no longer

an active market, any transactions that occur may never-

theless provide evidence of current market conditions

which will be considered in estimating a fair value using

the valuation technique as described. financial instru-

ments are assessed separately when determining if there

is an active market. none of the investments outlined in

the portfolio of investments belong to this category as

of 31 December 2014 (2013: nil).

Primary partnership investments

the fair value of financial instruments that are not traded

in an active market are determined by using valuation

techniques. private equity investments for which market

quotations are not readily available are valued at their

fair values by the Board of Directors. private equity valu-

ations are usually generated by the general partners or

managers of the underlying portfolio of investments on a

quarterly basis and are actually received with a delay of at

least one to two months after the quarter end date. As a

result, the year-end net asset value predominantly con-

sists of portfolio valuations provided by the general part-

ners of the underlying partnerships as of 30 september

2014, adjusted for subsequent capital calls and distribu-

tions. if the Board of Directors comes to the conclusion

upon recommendation of the investment Manager after

applying the above-mentioned valuation methods, that

the most recent valuation reported by the manager/ad-

ministrator of a fund investment is materially misstated,

it will make the necessary adjustments using the results of

its own review and analysis. the valuation adjustments

relate to events subsequent to the last capital account

valuation statement received but based upon informa-

tion provided by the general partner. in estimating the

fair value of fund investments, the investment Manager

in its valuation recommendation to the Board of Directors

considers all appropriate and applicable factors (includ-

ing a sensitivity to non-observable market factors) rele-

vant to their value, including but not limited to the fol-

lowing:

> reference to the fund investment’s reporting informa-

tion including consideration of any time lags between

the date of the latest available reporting and the bal-

ance sheet date of the Company in those situations

where no December valuation of the underlying fund

is available. this includes a detailed analysis of exits

(trade sales, initial public offerings, etc.) which the

fund investments have had in the period between the

latest available reporting and the balance sheet date

of the Company, as well as other relevant valuation

information. this information is a result of continuous

contact with the investment managers and, specifical-

ly, by monitoring calls made to the investment manag-

ers, distribution notices received from the investment

managers in the period between the latest available

report and the balance sheet date of the Company, as

well as the monitoring of other financial information

sources and the assessment thereof;

> reference to recent transaction prices;

> result of operational and environmental assessments:

periodic valuation reviews are made of the valuations

of the underlying investments as reported by the in-

vestment managers to determine if the values are rea-

sonable, accurate and reliable. these reviews include a

fair value estimation using widely recognized valua-

tion methods such as multiples analysis and discounted

cash flow analysis;

> review of management information provided by the

managers/administrators of the fund investments on a

regular basis; and

> mark-to-market valuations for quoted investments

held by the fund investments which make up a signifi-

cant portion of the Company’s net asset value.

All fair valuations may differ significantly from values

that would have been used had ready markets existed,

and the differences could be material. the valuation of

the investments is performed on a regular basis, but at

least quarterly.

Secondary partnership investments

the fair value measurement principles applied to second-

ary investments are the same as those applied to primary

investments with the exception that commitments to sec-

ondary partnership investments are recognized in the

Company’s accounts when the sale and purchase agree-

ment is signed but cost and fair value are not recognized

until such time as the general partners, consent has been

received and any rights of first refusals have expired.




where a general partner valuation specific to the Com-

pany is not available, a comparable valuation pertaining

to a similar commitment may be used as a representative

of the fair value of the Company’s investment.

(h) Financial assets and liabilities at amortized cost

financial assets classified as loans and receivables are car-

ried at amortized cost using the effective interest rate

method, less impairment losses, if any. financial liabilities,

other than those at fair value through profit or loss, are

measured at amortized cost using the effective interest

rate method.

(i) Allocation of proceeds from investments

Distributions from primary investments are typically ap-

plied to return of capital and realized gains on the basis

of the allocation provided by the general partner. in the

absence of this allocation the distribution is applied as

a return of capital until all contributed capital has been

returned and thereafter applied to realized gains. Distri-

butions from secondary investments are typically applied

as a return of capital until such time as the contributed

capital has been recovered in full and thereafter applied

to realized gains. Any portion of the distributions which

is identified as re-callable is included in the unfunded

commitment of the relevant investment.

(j) Dividends and interest income

Dividend income from financial assets at fair value

through profit or loss is recognized in the statement of

comprehensive income within dividend income when the

Company’s right to receive payments is established. inter-

est from bank, investors and underlying debt securities at

fair value through profit or loss is recognized in the state-

ment of comprehensive income within interest income

based on the effective interest rate.

(k) Withholding tax

the Company currently incurs withholding taxes imposed

by certain countries on investment income and capital

gains. such income or gains are recorded gross of with-

holding taxes in the statement of comprehensive income.

withholding tax is shown as a separate item in the state-

ment of comprehensive income.

(l) Payables and accrued expenses

payables and accrued expenses are recognized initially at

fair value and subsequently stated at amortized cost. ex-

penses are recognized in the statement of comprehensive

income on an accruals basis.

(m) Share issues and repurchases

the share capital of the Company was reclassified from

equity to debt in 2013 to better reflect the contractual

obligation between the Company and its shareholders in

accordance with iAs 32. the reclassification has no impact

on shareholders from an economic or controlling perspec-

tive.

shares are classified as financial liabilities under iAs 32.

only the Company can instruct the issuance or repurchase

of its shares. the Company issues shares in lieu of capital

calls requested from investors up to the maximum of their

subscribed capital amount.

the Company has the option to purchase shares from its

investors by way of a share repurchase and the share cap-

ital is reduced on the distribution date accordingly. share

repurchases can be instructed by the Company by way of

distributing proceeds received from its investments, once

all outstanding obligations and expenses of the Company

have been provided for, in accordance with the Company’s

distribution policy. the Company shall not unreasonably

delay the distribution of liquidity available from the re-

alization proceeds from portfolio investments, to share-

holders.

(n) Segment reporting

operating segments are reported in a manner consistent

with the internal reporting used by the chief operating

decision-maker. the chief operating decision-maker, who is

responsible for allocating resources and assessing perfor-

mance of the operating segments, has been identified as

the investment Manager.

the sole reportable operating segment of the Company is

investing in private equity investments. Asset allocation is

based on a single, integrated investment strategy and the

Company’s performance is evaluated on an overall basis.

there were no changes in the reportable segments during

2014 or 2013.


2. Critical accounting estimates and judgements

the Company makes estimates and assumptions concern-

ing the future. the resulting accounting estimates will, by

definition, seldom equal the related actual results. the

estimates and assumptions that have a significant risk of

causing a material adjustment to the carrying amounts of

assets within the next financial year are:

Functional currency estimate

the Board of Directors considers the us Dollar to be the cur-

rency that most faithfully represents the economic effect of

the underlying transactions, events and conditions. the us

Dollar is the currency in which management measures its

performance and reports its results for the Company.

Fair value of non-quoted investments

the Board of Directors uses its judgement to select a variety

of methods and makes assumptions that are not always

supported by observable market prices or rates.

the majority of the Company’s investments use either u.s.

GAAp or utilize a combination of ifrs and international

private equity and venture Capital valuation Guidelines

(“ipev Guidelines”) to value their underlying investments.

the predominant methodology adopted by the general

partners for the buyout investments in CApe is a market

approach which takes market multiples using a specified

financial measure (e.g. eBiDtA), recent public market and

private transactions and other available measures for valu-

ing comparable companies.

the use of valuation techniques requires them to make

estimates. Changes in assumptions could affect the report-

ed fair value of these investments.

3. Net gain on investments at fair value through

profit or loss

2014 USD

2013 USD

net realized gain 34,426,717 22,044,963

(Loss)/gain on foreign currency exchange (335,573) 27,532

net movement in unrealized gain/(loss) 12,162,903 (15,146,571)

Net gain on investment at fair value through profit or loss 46,254,047 6,925,924

4. Partnership expenses

2014USD

2013USD

Management fees 3,440,967 2,694,220

other partnership expenses (443,814) 621,880

2,997,153 3,316,100

the Company will generally invest in limited partnerships.

the manager of these partnerships, referred to as the

general partner, usually charges a fee and costs related to

the investment selection, monitoring and administrative

processes, among others. these indirect fees may typically

vary between 1% and 2.5% of either net asset value or

commitments of such partnerships.

5. Other expenses

the Administrator is paid a fee, which includes administra-

tion and transfer agency services, quarterly in advance at

the annual rate of 0.06% of the Company’s net asset value

but subject to a minimum fee of eur 60,000 per annum.

Custodian and trustee fees are accrued and paid monthly

in arrears at an annual rate of 0.02% each of the Company’s

net asset value, with the former capped at usD 60,000 per

annum.

the investment Manager is paid an annual fee calculated

as a percentage of the subscribed capital of the Company;

class A and class B shares are charged 0.75% and 1.00% per

annum from years one to five. each year thereafter, class A

and class B are charged 0.60% and 0.75% per annum of net

asset value, respectively. for class o shares, no manage-

ment fee shall be payable. the investment Manager’s fee is

paid quarterly in arrears.

the investment Manager is also entitled to a performance

fee that is accrued based on a percentage of the gain in the

Company’s value over the year, but only if it exceeds net

contributed capital plus an 8% compounded rate of return

(the “Hurdle”). no performance fee is payable for class

o shares. the performance fee also depends on the type

of investment, 5.0% (in the case of primary partnership

investments and 10.0% (in the case of secondary partner-

ship investments, on which the gain has arisen and will

only be payable when the contributed capital and the

Hurdle have been distributed back to the investors. there

was a performance fee accrual of usD 561,192 as of 31

December 2014 (31 December 2013: none).




Audit fees disclosed in the financial statements relate

wholly to the Company’s statutory audit. there are no

other fees paid to pricewaterhouseCoopers.

6. Cash and cash equivalents

2014USD

2013USD

Cash at bank 259,084 359,780

fixed-term deposits 8,500,000 4,000,000

8,759,084 4,359,780

the cash at bank balance was held with Credit suisse

international, Dublin Branch. the fixed-term deposits of

usD 1,000,000 and usD 7,500,000 were held with Credit

suisse international, Dublin Branch for a two day and five

day period to 2 January 2015 and 5 January 2015 at a rate

of 0.07% respectively.

in 2013, the cash at bank balance was held with Credit

suisse international, Dublin Branch. there were two

fixed-term deposits held with Credit suisse international,

Dublin Branch. one for usD 3,000,000 for the seven day

period to 2 January 2014 at a rate of 0.08% and a second

for usD 1,000,000 for the seven day period to 6 January

2014 at a rate of 0.08%.

7. Accrued income and other receivables

2014 USD

2013USD

Bank interest receivable 17 36

other receivables and

prepaid expenses 14,728 16,168

14,745 16,204

All amounts included above fall due within one year.

8. Investments at fair value through profit or loss

As of 31 December 2014, Crown Asia-pacific private equity

plc had subscribed interests in 37 funds (mainly limited

partnerships). the total committed capital amounted to

usD 361,316,729 of which usD 328,368,326 has been

contributed to date. the details of these funds are shown

in the portfolio of investments together with an outline

of the Company’s commitments to the funds. the commit-

ments to these private equity partnerships will be funded

by contributions from the Company’s investors.

ifrs 7 “financial instruments: Disclosures” requires the

Company to classify fair value measurements using a fair

value hierarchy that reflects the significance of the inputs

used in making the fair value measurements. the hierar-

chy has the following levels:

> Level 1 – quoted prices (unadjusted) in active markets

for identical assets or liabilities;

> Level 2 – inputs other than quoted prices included

within Level 1 that are observable for the asset or lia-

bility, either directly (i.e. as prices) or indirectly (i.e.

derived from prices); and

> Level 3 – inputs for the asset or liability that are not

based on observable market data (unobservable in-

puts).

the level in the fair value hierarchy within which the fair

value measurement is categorized in its entirety is deter-

mined on the basis of the lowest level input that is sig-

nificant to the fair value measurement in its entirety. for

this purpose, the significance of an input is assessed

against the fair value measurement in its entirety. if a fair

value measurement uses observable inputs that require

significant adjustment based on unobservable inputs,

that measurement is a Level 3 measurement. Assessing

the significance of a particular input to the fair value

measurement in its entirety requires judgement, consid-

ering factors specific to the asset or liability.

the determination of what constitutes “observable” re-

quires significant judgement by the Board of Directors.

the Board of Directors considers observable data to be

that market data that is readily available, regularly dis-

tributed or updated, reliable and verifiable, not proprie-

tary, and provided by independent sources that are ac-

tively involved in the relevant market.

investments whose values are based on quoted market

prices in active markets, and therefore classified within

Level 1, include active listed equities. the Company does

not adjust the quoted price for these instruments. the

Company does not hold any listed securities (2013: none).

financial instruments that trade in markets that are not

considered to be active but are valued based on quoted

market prices, dealer quotations or alternative pricing

sources supported by observable inputs are classified

within Level 2. the Company currently has no instruments

classified as Level 2 (2013: none).

instruments classified within Level 3 have significant

unobservable inputs, as they trade infrequently. Level 3

instruments include private equity investments for which


observable prices are not available. the Company values

these investments as described in note 1(g) of the finan-

cial statements. All the Company’s investments at 31 De-

cember 2014 and 31 December 2013 are considered Level

3 investments.

prior to making a commitment to primary investments,

direct investments or purchasing secondary investments

the fund’s investment Manager carries out a comprehen-

sive due diligence review of the proposed investment.

this due diligence review encompasses: (i) prior invest-

ment performance; (ii) legal terms and conditions; (iii)

investment team review; and (iv) reference calls with

associated parties. Based on the outcome of the due

diligence review, the investment Manager then makes

an investment decision on behalf of the fund. the invest-

ment Manager continuously reviews all investments to

determine if fair values are being provided by the general

partner and/or investment manager. if it is determined

that the values provided are not fair values under ifrs

then the investment Manager revalues the investment

using the techniques described in note 2 Critical account-

ing estimates and judgements and proposes a valuation

adjustment to the Board of Directors.

During the years ended 31 December 2014 and 31 Decem-

ber 2013, there were no transfers between the three lev-

els of financials assets.

the following table represents the roll forward valuation

of Level 3 instruments at 31 December 2014 and 31 De-

cember 2013:

Investments at fair value through profit or loss

2014USD

2013USD

Valuation at 1 January 294,976,462 319,262,125

Additions 6,418,556 10,563,872

Disposals (64,943,701) (41,775,459)

realized gains 35,265,328 24,066,081

realized losses (1,174,184) (1,993,586)

unrealized gains 31,038,798 14,245,732

unrealized losses (18,875,895) (29,392,303)

Valuation at 31 December 282,705,364 294,976,462

Change in unrealized gains or losses for Level 3 assets held at year end and included in other net changes in fair value on financial assets and financial liabilities at fair value through profit or loss 12,162,903 (15,146,571)

total unrealized gains or losses in the above table are in-

cluded in the statement of comprehensive income under

net gain on investments at fair value through profit or

loss.

the assets and liabilities included in the above table are

carried at amortised cost; their carrying values are a rea-

sonable approximation of fair value.

the strategies and percentage of fair value include the

following: interest rate, foreign currency and other price

risks represent the market risks to which such partner-

ships are directly exposed. furthermore in the absence of

reliable market indicators, discernible market trends or

benchmarks, the Directors have evaluated that 5% is a

reasonable possible change on a strategy by strategy basis

as calculated on page 32.

2014%

2013%

Diversification by industry (FMV)

industrial products 18.6% 18.8%

financial 17.5% 17.0%

Consumer products 13.4% 15.0%

Consumer services 12.0% 10.7%

it 11.7% 13.2%

industrial services 9.4% 9.5%

Life sciences 5.3% 4.9%

Cleantech 4.2% 2.9%

Healthcare 2.9% 3.1%

real estate 2.3% 2.7%

telecom 1.7% 1.5%

Media 1.0% 0.7%

Total 100.0% 100.0%

the following tables analyzes within the fair value hierar-

chy the fund’s assets and liabilities (by class) at 31 Decem-

ber 2014 and 2013.




AS OF 31 DECEMBER 2014

Amounts are reported in USD Level 1 Level 2 Level 3 Total

Assets

Current assets

Cash and cash equivalents 8,759,084 – – 8,759,084

Accrued income and other receivables – 14,745 – 14,745

Total current assets 8,759,084 14,745 – 8,773,829

Non-current assets

investments at fair value through profit or loss – – 282,705,364 282,705,364

Total non-current assets – – 282,705,364 282,705,364

TOTAL ASSETS 8,759,084 14,745 282,705,364 291,479,193


share capital – 152,848,000 – 152,848,000

retained earnings – 137,716,023 – 137,716,023

Net assets attributable to shareholders – 290,564,023 – 290,564,023

Current liabilities

Accrued expenses and other payables – 353,978 – 353,978

Due to banks – – – –

Total current liabilities – 353,978 – 353,978



Total non-current liabilities – 561,192 – 561,192

TOTAL LIABILITIES – 291,479,193 – 291,479,193

AS OF 31 DECEMBER 2013

Amounts are reported in USD Level 1 Level 2 Level 3 Total

Assets

Current assets


Accrued income and other receivables – 16,204 – 16,204

Total current assets 4,359,780 16,204 – 4,375,984

Non-current assets



TOTAL ASSETS 4,359,780 16,204 294,976,462 299,352,446


share capital – 199,448,000 – 199,448,000

retained earnings – 94,043,408 – 94,043,408

Net assets attributable to shareholders – 293,491,408 – 293,491,408

Current liabilities


Due to banks 5,500,000 – – 5,500,000

Total current liabilities 5,500,000 361,038 – 5,861,038


Accrued expenses and other payables – – – –

Total non-current liabilities – – – –

TOTAL LIABILITIES 5,500,000 293,852,446 – 299,352,446


9. Accrued expenses and other payables

Due within one year2014USD

2013USD

investment management fee 212,512 214,503

Administration fee 48,882 51,176

Custodian and trustee fees 29,856 19,821

Audit fee 27,409 29,965

Commitment fee 5,111 7,667

trade creditors and accruals 30,208 34,621

interest payable on bank loan – 3,285

353,978 361,038

Due after one year

performance fee 561,192 –

561,192 –

A performance fee provision of usD 561,192 was accrued

at the year end as the net assets exceeded the net capital

contributed by investors to date, together with an 8%

compound annual rate of return on their net contributed

capital. the performance fee will not be paid to the

investment Manager until such time as each investor has

received an amount equal to its contributed capital plus

the compounded 8% rate of return on such net contrib-

uted capital.

10. Due to banks

2014 USD

2013 USD

short-term bank loan – 5,500,000

– 5,500,000

in 2013 the short-term bank loan of usD 5,500,000 was

held with LGt Bank (ireland) Limited, for the two week

period to 7 January 2014 at a rate of 2.6875%.

11. Share capital

Authorized

the authorized share capital of the Company is divided

into three management shares of usD 1 each and

500,000,000 participating shares of no par value.

Management shares

Management shares issued by the Company amount to

usD 3, being three management shares of usD 1 each,

fully paid.

the management shares do not form part of the net asset

value of the Company and are thus disclosed in the finan-

cial statements by way of this note only. in the opinion of

the Board of Directors, this disclosure reflects the nature

of the Company’s business as an investment fund.

Participating shares

the issued participating share capital is at all times equal

to the net asset value of the Company. shares are issued

and redeemed in lieu of capital calls and distributions

made by the Company which in turn are limited by inves-

tors, total subscribed capital and the Company’s distribu-

tion policy, respectively.

the voting rights of the participating shareholders are as

outlined in the Directors, report and all share classes are

equal in respect of their voting rights. the issue and re-

demption of shares in the Company are determined by

the capital calls and distributions as declared by the Com-

pany in accordance with the provisions of the prospectus.

As this is a closed-ended fund, the investors cannot re-

quest an issuance or redemption of shares. the Company

has the option to purchase shares from investors by way

of a share repurchase as part of its distribution policy.

the Company has not issued any shares or other instru-

ments that are considered to have a dilutive potential.

Significant investors

five investors held ten per cent or more of the share cap-

ital of the Company at the year end.


Share capital movements

Number of shares in issue Share class as of 31 December 2014 Share class as of 31 December 2013

“A” “B” “O” “A” “B” “O”

At beginning of year 699,461.91 226,375.62 1,032,452.86 769,218.55 249,429.28 1,130,327.46

issued 29,297.06 9,714.06 41,104.21 36,565.48 12,059.60 51,248.94

redeemed (133,695.81) (44,291.78) (187,767.80) (106,322.12) (35,113.26) (149,123.54)

At end of year 595,063.16 191,797.90 885,789.27 699,461.91 226,375.62 1,032,452.86



Schedule of related party transactions

Related party/ Relationship/ Agreement(s)/ Direct/indirect

Terms and conditions

Transaction type 2014USD

2013USD

LGt Capital partners (ireland) Limited/Common directorships/ investment management agreement/Direct

note 5 investment management fee 851,754 892,766

note 5/9 investment management fee payable 212,512 214,503

note 5 investment performance fee 561,192 –

note 5/9 investment performance fee – payable 561,192 –

LGt fund Managers (ireland) Limited/Common directorships/ Administration agreement/ Direct

note 5 Administration and transfer agency fee 178,987 186,204

note 5/9 Administration and transfer agency fee payable 48,882 51,176

LGt Bank (ireland) Limited/ Common directorships/ Loan and paying agency agreement Direct

note 10 Due to banks – 5,500,000

note 12 finance costs – interest charges 29,192 70,564

note 12 other operating expenses – commitment fees 24,028 30,417

note 12 other operating expenses – commitment fees payable 5,111 7,667

eur 1,000 p.a. other operating expenses – paying agency fees – 1,000

Significant investors 31 December 2014

Shares held

% of issuedshare capital

investor reference CApe014 225,438.61 13.5%





Significant investors 31 December 2013

Shares held

% of issuedshare capital






12. Related party disclosures

parties are considered to be related if one party has the

ability to control the other party or exercise considerable

influence over the other party in making financial or oper-

ating decisions. in the opinion of the Board of Directors, the

parties referred to in the schedule accompanying this note

are related parties under iAs 24 “related party Disclosures”.

Directors’ fees of usD 1,076 are charged in respect of

Konrad Baechinger’s services for 2014 (2013: usD 1,373).

the Company has a credit facility with LGt Bank (ireland)

Limited for the lower of usD 5,500,000 or 25% of the

nAv, effective to 31 December 2014. the loan is secured

against the assets of the Company. on 16 May 2014, the

terms of the credit facility were amended to decrease the

credit facility to the lower of usD 5,000,000 or 25% of the

nAv. on 11 December 2014, the terms of the credit facil-

ity were again amended to increase the final maturity

date to 31 December 2015 (the “final Maturity Date”).

the facility was used for 184 days during the year. the

average usage over these days was usD 2.3 million with

an average borrowing rate of 2.63%. the facility was

used for 243 days during 2013. the average usage over

these days was usD 3.9 million with borrowing rates

ranging from 2.6875% to 2.8750%.

As referred to in the Director’s report, board members

may have an indirect interest through a co-investment

program in the Company and while an alignment of in-

terests is common practice in the private equity industry

these holdings are not material and would represent less

than one per cent of the shares in issue in the Company

(2013: less than one per cent).

Directors of this Company are also Directors of or con-

nected with shareholders invested in the Company. these

shareholders have transacted on an equal basis as all

other shareholders within the same class and they repre-

sent 34.4% (2013: 34.3%) of the shareholdings in the

Company. these shareholders represented 34.9% (2013:

34.9%) of capital issued during the year and 34.9% (2013:


future cash flows of a financial instrument will fluctuate

because of changes in market prices (other than those

arising from interest rate risk or currency risk). the Board

of Directors reviews and agrees policies for managing

each of these risks and they are summarized below:

(a) Market price risk

the investments held in the portfolio may be realized

only after several years and their fair values may change

significantly over time. the investment Manager makes

investment decisions on behalf of the Company that are

consistent with the Company’s objectives. the investment

Manager’s recommendations are reviewed by the Board

of Directors before the investment decisions are imple-

mented.

the investment objective is to provide investors with ac-

cess to a well-diversified private equity portfolio investing

in a range of growth capital funds, buyout funds and ven-

ture capital funds mainly focused on the Asia-pacific re-

gion. these funds and their respective investment manag-

ers are selected on qualitative research criteria including:

(i) past performance in relation to investment style, ex-

pected returns, benchmarks and degree of risk; (ii) busi-

ness structure and team organization of the investment

manager; (iii) fit of the investment manager/investment

vehicle into the overall portfolio; (iv) amount under man-

agement and commitment of the principals of the invest-

ment manager; and (v) cost structure.

At 31 December 2014, the Company’s market risk is af-

fected by four main components: (i) changes in actual

market prices; (ii) interest rate risk; (iii) foreign currency

movements; and (iv) other price risks. foreign currency

risk and liquidity risk are covered in notes 14(b) and 14(e),

respectively.

if the value of the investments (based on year-end values)

had increased or decreased by 5% with all other variables

held constant, the impact on the statement of compre-

hensive income would have been usD 14,135,268 (2013:

usD 14,748,823). the Directors have deemed the 5% as a

reasonable representation of a variable differential in the

value of investments.

the Company is generally exposed to a variety of market

risk factors, which may vary significantly over time and

measurement of such exposure at any given point in time

34.9%) of the distributions made during the year by way

of share repurchase. the three shareholders, representing

a 34.4% (2013: 34.3%) holding in the Company, having

shareholdings in excess of 10% are included as significant

shareholders in note 11.

13. Exchange rates

the financial statements are prepared in us Dollar. the

following exchange rates have been used to translate

assets and liabilities in other currencies to us Dollar:

At 31 December 2014

At 31 December 2013

AUD 1.2220 1.1178

CHF 0.9936 0.8891

EUR 0.8264 0.7257

JPY 119.8897 105.1105

14. Financial risk management

the Company’s investment objective is to maximize the

long-term returns to shareholders by investing in a diversi-

fied private equity portfolio consisting of growth capital

funds, buyout funds and venture capital funds mainly fo-

cused on the Asia-pacific region. the holding of invest-

ments, investing activities and associated financing under-

taken pursuant to this objective involves certain inherent

risks. the inherent risks can also be affected by the concen-

tration of elements within the different risk categories.

where significant concentration risks exist, they will be

separately identified within the specific risk categories

outlined in the note. the charts outlined in the investment

Advisor’s report shows geographical and industry-based

concentration levels. Below is a description of the princi-

pal risks inherent in the Company’s activities along with

the actions it has taken to manage these risks.

the Company’s assets and liabilities comprise financial

instruments which include:

> private equity investments: these are held in accord-

ance with the Company’s investment objective and

policies; and

> cash, liquid resources and short-term debtors and credi-

tors that arise directly from its investment activities.

the main risks arising from the Company’s financial in-

struments are market price (including other price risks),

foreign currency, interest rate, credit and liquidity risks.

other price risk relates to the risk that the fair value or




may be difficult given the flexibility, complexity and lim-

ited transparency of the underlying investments. there-

fore, a sensitivity analysis is deemed of limited explana-

tory value or may be misleading.

(b) foreign currency risk

A portion of the net assets of the Company are denomi-

nated in currencies other than the us Dollar (which is

the Company’s functional currency), with the effect that

the balance sheet and total return can be significantly

affected by currency movements.

table 1 sets out the Company’s direct exposure to foreign

currency risk, none of which was hedged by the Company

at the end of the year.

in accordance with the Company’s policy, the investment

Manager monitors the Company’s currency position on a

weekly basis and the Board of Directors reviews it on a

regular basis.

for the purpose of determining risk disclosures, in accord-

ance with ifrs 7, currency risk is not considered to arise

from financial instruments that are non-monetary items

(e.g. equity investments).

if the exchange rates (based on year-end values) had in-

creased or decreased by an equivalent percentage move-

ment as occurred in 2014, then with all other variables

held constant, the impact on the statement of compre-

hensive income would have been usD 529,908 (2013: usD

938,923).

(c) interest rate risk

the Company invests in the desired currencies at both

fixed and floating rates of interest. the interest rate risk

is that the fair value of cash and cash equivalents and

loans payable will fluctuate with the changes in the mar-

ket rates. the influence of changes in the market rates of

interest is not expected to be significant.

the Company’s financial assets and liabilities, which are

set out in table 2 are, with the exception of cash and cash

equivalents and loans, primarily non-interest bearing and

are therefore not subject to significant amounts of risk

due to fluctuations in the interest rates.

(d) Credit risk

the Company takes on exposure to credit risk, which is

the risk that a counterparty will be unable to pay amounts

in full when due. this risk applies to the assets of the Com-

pany all of which are unsecured. the counterparty risk

exposure is equivalent to the total value of the Company’s

assets. impairment provisions are provided for losses that

have been incurred by the balance sheet date, if any.

there were no impairment provisions in the current year.

the Company’s main credit risk concentration is from

amounts held at counterparty banks and from the private

equity investments in which the Company is invested. the

Company seeks to mitigate its exposure to credit risk by

conducting its contractual transactions with institutions

which are reputable and well established.

in accordance with the Company’s policy, the investment

Manager monitors the Company’s credit position on a

monthly basis and the Board of Directors reviews it on a

regular basis.

the cash at bank balance is unsecured and is held with

Credit suisse international, Dublin Branch, the only rated

counterparty credit risk (A/A-1). the credit rating of the

Custodian as at 31 December 2014 was A/A-1 (2013: A/

A-1). (the credit rating of LGt Bank (ireland) Limited as at

31 December 2014 was A-1/A+ (2013: A-1/A+) (source:

standard & poor’s).

(e) Liquidity risk

the Company may have an inability to raise additional

funds or to use credit lines, if any, to satisfy the commit-

ments to the various private equity investments. in a

private equity partnership investment, a commitment is

typically given to a newly established private equity part-

nership. in the ensuing three to six years, the partnership

draws down the available funds as and when attractive

investment opportunities become available. As a general

rule, the partnership already begins to realize sharehold-

ing interests before all the capital has been invested. this

means that the funds made available by the investors are

not expected to be 100% invested in the private equity

partnership. Historically, the average exposure ranges

from 60% to 70%.



main risk relating to an investor default. the main provi-

sions for dealing with a default allow the Company to

conditionally take ownership of a defaulting investor’s

holding with a view to sourcing a buyer and the imposi-

tion of a 50% penalty on the sales proceeds.

15. Taxation

under current law and practice, the Company qualifies

as an investment undertaking as defined in section 739B

of the taxes Consolidation Act, 1997, as amended (the

“tCA”). on that basis, it is not chargeable to irish tax on

its income or gains.

However, irish tax may arise on the occurrence of a

“chargeable event”. A chargeable event includes any dis-

tribution payments to shareholders or any encashment,

redemption, transfer or cancellation of shares and any

deemed disposal of shares for irish tax purposes arising as

a result of holding shares in the Company for a period of

eight years or more.

no irish tax will arise in respect of chargeable events in

respect of a shareholder who is an exempt irish investor

(as defined in section 739D of the tCA) or who is neither

irish resident nor ordinarily resident in ireland for tax pur-

poses at the time of the chargeable event, provided, in

each case, that an appropriate valid declaration in accord-

ance with schedule 2B of the tCA is held by the Company

or where the Company has been authorized by irish rev-

enue to make gross payments in absence of appropriate

declarations.

Distributions, interest and capital gains (if any) received

on investments made by the Company may be subject to

withholding taxes imposed by the country of origin and

such taxes may not be recoverable by the Company or its

shareholders.

in the event of liquidity shortfall, the Company has access

to credit facilities and uncalled commitments which have

default provisions, if needed, provided for in the prospec-

tus. the Company can hold back making distributions to

ensure its ability to meet current and future obligations.

the liquidity position owing to shareholders at the bal-

ance sheet date is represented by the assets minus liabili-

ties of the Company.

As mentioned in the Directors, report, the Company has

access to a credit facility, the lower of usD 5,000,000 and

25% of the Company’s net asset value, with LGt Bank (ire-

land) Limited. the Company also has a cash at bank posi-

tion at 31 December 2014 of usD 8,759,084 (31 December

2013: usD 4,359,780). the amounts outstanding on the

total committed capital of the investments as at 31 De-

cember 2014 are usD 32,948,403 (31 December 2013: usD

39,999,087), which are callable at anytime. these amounts

are off balance sheet and may be called up over the life

of the investments.

table 3 analyzes the Company’s financial assets and liabil-

ities based on the remaining period at the balance sheet

date to the contractual maturity date. the amounts in

table 3 are the contractual undiscounted cash flows. Bal-

ances due within 12 months equal their carrying balances,

as the impact of discounting is not significant. in accord-

ance with the Company’s policy, the investment Manager

monitors the Company’s liquidity position on a weekly

basis and the Board of Directors reviews it on a regular

basis.

(f) Capital risk management

the capital of the Company is represented by the net as-

sets attributable to the holders of participating shares.

the Company’s objective when managing the capital is

to safeguard the ability to continue as a going concern

in order to provide returns for holders of participating

shares and benefits for other stakeholders and to main-

tain a strong capital base to support the development of

the investment activities of the Company. the investment

Manager and Administrator monitor capital on the basis

of the value of net assets attributable to holders of par-

ticipating shares, and the position is reviewed by the

Board periodically. the capital management of the Com-

pany is controlled by the investment Manager with the



Table 1: currency exposureAmounts are reported in USD

At 31 December 2014 USD EUR CHF AUD JPY Total

Assets

Current assets

Cash and cash equivalents 8,759,084 – – – – 8,759,084

Accrued income and other receivables 17 14,728 – – – 14,745

Total current assets 8,759,101 14,728 – – – 8,773,829

Non-current assets

investments at fair value through profit or loss 278,491,335 – – 1,076,630 3,137,399 282,705,364

Total non-current assets 278,491,335 – – 1,076,630 3,137,399 282,705,364

TOTAL ASSETS 287,250,436 14,728 – 1,076,630 3,137,399 291,479,193


share capital 152,848,000 – – – – 152,848,000

retained earnings 137,716,023 – – – – 137,716,023

Net assets attributable to shareholders 290,564,023 – – – – 290,564,023

Current liabilities

Accrued expenses and other payables 248,480 77,548 27,950 – – 353,978

Due to banks – – – – – –

Total current liabilities 248,480 77,548 27,950 – – 353,978


Accrued expenses and other payables 561,192 – – – – 561,192

Total non-current liabilities 561,192 – – – – 561,192

TOTAL LIABILITIES 291,373,695 77,548 27,950 – – 291,479,193

At 31 December 2013 USD EUR CHF AUD JPY Total

Assets

Current assets

Cash and cash equivalents 4,359,780 – – – – 4,359,780

Accrued income and other receivables 36 16,168 – – – 16,204

Total current assets 4,359,816 16,168 – – – 4,375,984

Non-current assets

investments at fair value through profit or loss 290,037,796 – – 2,313,903 2,624,762 294,976,462

Total non-current assets 290,037,796 – – 2,313,903 2,624,762 294,976,462

TOTAL ASSETS 294,397,612 16,168 – 2,313,903 2,624,762 299,352,446


share capital 199,448,000 – – – – 199,448,000

retained earnings 94,043,408 – – – – 94,043,408

Net assets attributable to shareholders 293,491,408 – – – – 293,491,408

Current liabilities

Accrued expenses and other payables 246,275 81,142 33,621 – – 361,038

Due to banks 5,500,000 – – – – 5,500,000

Total current liabilities 5,746,275 81,142 33,621 – – 5,861,038


Accrued expenses and other payables – – – – – –

Total non-current liabilities – – – – – –

TOTAL LIABILITIES 299,237,683 81,142 33,621 – – 299,352,446


Table 2: interest rate exposureAmounts are reported in USD

At 31 December 2014 Less than 1 month

3–6 months Non-interest bearing

Total

Assets

Current assets


Accrued income and other receivables – – 14,745 14,745

Total current assets 8,759,084 – 14,745 8,773,829

Non-current assets



TOTAL ASSETS 8,759,084 – 282,720,109 291,479,193


share capital – – 152,848,000 152,848,000

retained earnings – – 137,716,023 137,716,023

Net assets attributable to shareholders – – 290,564,023 290,564,023

Current liabilities

Accrued expenses and other payables – – 353,978 353,978

Total current liabilities – – 353,978 353,978



Total non-current liabilities – – 561,192 561,192

TOTAL LIABILITIES – – 291,479,193 291,479,193


3–6 months Non-interest bearing

Total

Assets

Current assets


Accrued income and other receivables – – 16,204 16,204

Total current assets 4,359,780 – 16,204 4,375,984

Non-current assets



TOTAL ASSETS 4,359,780 – 294,992,666 299,352,446


share capital – – 199,448,000 199,448,000



Current liabilities

Accrued expenses and other payables – 7,667 353,371 361,038

Due to banks 5,500,000 – – 5,500,000

Total current liabilities 5,500,000 7,667 353,371 5,861,038




TOTAL LIABILITIES 5,500,000 7,667 293,844,779 299,352,446




Table 3: liquidity exposureAmounts are reported in USD


1–3 months No stated maturity Total

Assets

Current assets


Accrued income and other receivables 14,745 – – 14,745

Total current assets 8,773,829 – – 8,773,829

Non-current assets



TOTAL ASSETS 8,773,829 – 282,705,364 291,479,193


share capital – – 152,848,000 152,848,000



Current liabilities

Accrued expenses and other payables 353,978 – – 353,978

Total current liabilities 353,978 – – 353,978



Total non-current liabilities – – 561,192 561,192

TOTAL LIABILITIES 353,978 – 291,125,215 291,479,193


1–3 months No stated maturity Total

Assets

Current assets


Accrued income and other receivables 16,204 – – 16,204

Total current assets 4,375,984 – – 4,375,984

Non-current assets



TOTAL ASSETS 4,375,984 – 294,976,462 299,352,446


share capital – – 199,448,000 199,448,000



Current liabilities

Accrued expenses and other payables 353,371 7,667 – 361,038

Due to banks 5,500,000 – – 5,500,000

Total current liabilities 5,853,371 7,667 – 5,861,038




TOTAL LIABILITIES 5,853,371 7,667 293,491,408 299,352,446



16. Soft commission arrangements

there were no soft commission arrangements affecting

the Company during the years ended 31 December 2014

and 31 December 2013.

17. Events since the year end

As of 12 february 2015, the Company has contributed

usD 0.5 million to existing private equity partnership in-

vestments.

on 12 January 2015, CApe distributed usD 10.1 million to

investors by way of a share repurchase.

18. Approval of financial statements

the Directors approved the audited financial statements

on 12 february 2015.


Portfolio of investments | Crown AsiA-pACifiC privAte equity Annual report 2014 39

Portfolio of investments

NOTES:1) investments have been assigned an alphanumeric code for reasons of confidentiality. 2) A complete statement of portfolio changes is available to shareholders from the registered office of the Company free of charge.3) the notes to the accounts are an integral part of the financial statements.

FOR THE YEAR ENDED 31 DECEMBER 20141), 2), 3)

Partnershipcurrency

Capitalcommit-

ments:partnership

currency

Capitalcommit-

ments:USD

2014Fair

value (USD)

2014Percentage

of total net assets

attributable to share-

holders(%)

2013Fair

value (USD)

2013Percentage

of total net assets


holders(%)

Primary investments

Vintage year 2007

p1 usD 15,000,000 15,000,000 13,624,318 4.7 14,395,717 4.9

p2 Jpy 1,279,000,000 10,668,139 3,137,399 1.1 2,624,762 0.9

p3 usD 20,000,000 20,000,000 12,571,851 4.3 15,361,381 5.2

p4 usD 20,000,000 20,000,000 23,676,871 8.1 23,791,430 8.1

p5 usD 15,000,000 15,000,000 12,248,966 4.2 16,978,036 5.8

p6 usD 10,000,000 10,000,000 9,399,331 3.2 8,504,856 2.9

p7 usD 20,000,000 20,000,000 10,811,143 3.7 11,390,478 3.9

p8 usD 19,000,000 19,000,000 12,295,498 4.2 12,831,872 4.3

p9 usD 5,000,000 5,000,000 4,182,499 1.4 4,450,559 1.5

p10 usD 20,000,000 20,000,000 14,921,898 5.1 15,888,192 5.4

Vintage year 2008

p11 usD 22,500,000 22,500,000 15,335,850 5.3 18,236,546 6.2

p12 usD 20,000,000 20,000,000 18,678,988 6.4 18,285,144 6.2

p13 usD 10,000,000 10,000,000 6,921,153 2.4 7,755,524 2.6

p14 usD 14,000,000 14,000,000 12,777,675 4.4 9,617,196 3.3

p15 usD 10,000,000 10,000,000 7,902,349 2.7 6,401,709 2.2

p16 usD 4,000,000 4,000,000 3,465,034 1.2 2,456,816 0.8

p17 usD 5,000,000 5,000,000 4,586,449 1.6 4,544,146 1.5

p18 usD 6,000,000 6,000,000 10,010,466 3.5 7,821,557 2.7

p19 usD 20,000,000 20,000,000 13,424,519 4.7 11,075,350 3.8

Vintage year 2009

p20 usD 10,000,000 10,000,000 7,871,150 2.8 4,261,901 1.5

p21 usD 2,500,000 2,500,000 2,458,512 0.8 2,334,868 0.8

Vintage year 2010

p22 usD 10,000,000 10,000,000 9,959,146 3.4 9,270,596 3.2

p23 usD 10,000,000 10,000,000 10,133,097 3.5 7,539,937 2.6

Sub-total primary investments 298,668,139 240,394,162 82.7 235,818,573 80.3


40 Crown AsiA-pACifiC privAte equity Annual report 2014 | Portfolio of investments

NOTES:1) investments have been assigned an alphanumeric code for reasons of confidentiality. 2) A complete statement of portfolio changes is available to shareholders from the registered office of the Company free of charge.3) the notes to the accounts are an integral part of the financial statements.

FOR THE YEAR ENDED 31 DECEMBER 2014 (CONTINUED)1), 2), 3)

Partnershipcurrency

Capitalcommit-

ments:partnership

currency

Capitalcommit-

ments:USD

2014Fair

value (USD)

2014Percentage

of total net assets


holders(%)

2013Fair

value (USD)

2013Percentage

of total net assets


holders(%)

Secondary transactions

Closing year 2007

transaction no. 1

s1-1 usD 8,792,123 8,792,123 5,097,435 1.8 4,887,724 1.7

Closing year 2008

transaction no. 2

s2-1 usD 2,583,786 2,583,786 1,122,526 0.4 1,186,245 0.4

s2-2 usD 2,849,183 2,849,183 1,675,727 0.6 1,765,524 0.6

s2-3 usD 1,185,094 1,185,094 – – – –

s2-4 usD 2,834,064 2,834,064 1,455,726 0.5 1,691,724 0.6

Closing year 2009

transaction no. 3

s3-1 usD 5,567,496 5,567,496 6,084,911 2.1 4,579,846 1.6

s3-2 usD 4,564,634 4,564,634 7,892,686 2.7 7,930,873 2.7

transaction no. 4

s4-1 usD 1,324,683 1,324,683 16,866 0.0 2,834,737 1.0

s4-2 usD 8,653,317 8,653,317 5,966,698 2.1 17,804,255 6.1

Closing year 2010

transaction no. 5

s5-1 usD 5,341,599 5,341,599 4,182,499 1.4 4,450,559 1.5

transaction no. 6

s6-1 usD 2,443,886 2,443,886 1,865,237 0.6 1,990,130 0.6

Closing year 2011

transaction no. 7

s7-1 usD 10,759,578 10,759,578 5,874,261 2.0 7,722,369 2.6

transaction no. 8

s8-1 AuD 1,632,473 1,335,853 42,597 0.0 43,998 0.0

s8-2 AuD 5,393,247 4,413,294 1,034,033 0.4 2,269,905 0.8

Sub-total secondary transactions 62,648,590 42,311,202 14.6 59,157,889 20.2

Investments at fair value

through profit or loss 361,316,729 282,705,364 97.3 294,976,462 100.5

Other net assets and liabilities 7,858,659 2.7 (1,485,054) (0.5)

NET ASSETS ATTRIBUTABLE

TO SHAREHOLDERS 290,564,023 100.0 293,491,408 100.0


Crown AsiA-pACifiC privAte equity Annual report 2014 41

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42 Crown AsiA-pACifiC privAte equity Annual report 2014

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LGT Capital Partners Ltd.Schuetzenstrasse 68808 PfaeffikonSwitzerlandPhone +41 55 415 96 00Fax +41 55 415 96 [email protected]

www.lgtcp.com

crown asia-pacific private equity plc · end date 13 july 2011 fund expiry date 13 july 2019 ......

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