Portfolio Update.

ALTERNATIVE LIQUIDITY FUND LIMITED

Registered in Guernsey - Number 60552

LEI NUMBER 213800R5CHD76J3LU713

Registered Office:

1 Royal Plaza, Royal Avenue,

St Peter Port, Guernsey, GY1 2HL

3 July 2025

PORTFOLIO UPDATE

The Board and the Investment Adviser have received a positive update from Vision Brazil with regard to the FCVS RJ Fund. As previously communicated in the 2024 interim accounts and recent fact sheets, Vision and their advisers have been negotiating the FCVS RJ credits through the government system and have achieved some success. Over 80% of the credits in the portfolio which were approved by Caixa and officially handed over to the Treasury have now been novated. Having signed a novation contract with the Treasury, the related cash and bonds have been deposited into the V3 FIDC securities account.

A further tranche remains under review by the Treasury, and this may transition through to novation in the next several months.

With respect to the first novated tranche, Vision will now work with tax lawyers, service providers and the independent directors to determine and execute the following:

-      the fiscal deductions that need to be settled in Brazil;

-      the distribution waterfall approval;

-      directors' resolution approval;

-      execution of FIDC amortization;

-      execution of FX transaction;

-      transfer of funds among intermediate offshore vehicles; and

-      sending notice of redemption to the Cayman administrator (Suntera); and

-      Finally the joint authorization from Vision and Suntera for payment on behalf of each investor.

Vision estimates that the above steps will take approximately one month to complete. With respect to the waterfall of payments, we expect the V Invest RJ Loan to be settled in full first (ALF's share being circa US$2.67mlm), followed by the repayment of the recent US$3mln recapitalisation loan. The balance will then be distributed to all shareholders.

ALF owns 21.5% of the Vision RJ Fund and using an approximate estimate for the expected deductions that are listed above, we anticipate that ALF should receive a figure roughly equivalent to Vision's March 31, NAV for the RJ Fund. This was US$14.88mln.

We would like to re-iterate that this recovery estimate is an indicative guideline only. At this point we do not have accurate data with respect to the deductions listed above. Consequently, the recovery number could increase or decrease.

Based on the estimated timeline received from Vision, it is possible that this exercise could be completed prior to the end of August, however, accurate timing is difficult to ascertain at this point.  

Once funds have been received, the Board will determine the appropriate amount of cash to be distributed through redeemable B shares. The Board will also take soundings from shareholders with a view to making recommendations with respect to the remaining assets in the portfolio.

Enquiries

Tim Gardner, Hindsight Solutions Limited

Tel. +44 7917 630 460

Email: timgardner@hindsightsolutions.co.uk

Website:   https://alternativeliquidityfund.com/