Q2 2026 Partners Group Private Equity Ltd Earnings Call

August 27, 2026

Operator: `to the PGPE Limited Half Yearly 2026 Results Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you may submit your questions via the webcast. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Andreea Mateescu. Please go ahead.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you may submit your questions via the webcast. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to hand the conference over to your first speaker today, Andrea Mataescu. Please go ahead.

Speaker #2: Good morning, and thank you for joining us today. I'm Andrea Mataescu, responsible for investor relations at PGPE Limited, and I'm delighted to be here with my colleagues Christopher Maus, Managing Director and Co-Head of Portfolio Solutions, and Federica Cattaniga, Senior Portfolio Manager responsible for PGPE Limited.

Andreea Mateescu: Good morning, and thank you for joining us today. I am Andreea Mateescu, Investor Relations responsible for PGPE Limited, and I am delighted to be here with my colleagues, Christopher Maas, Managing Director and Co-head Portfolio Solutions, and Federica Cazzaniga, Senior Portfolio Manager responsible for PGPE Limited. Today, we will be sharing an update on the portfolio and performance during the H1 2026. Before we get started, just a quick note on housekeeping. If you have any questions during the webcast, please use the Q&A tool available on your screen. We will address questions at the end of the presentation. To ensure we cover as much as possible, we will group similar questions and respond to them in one go.

Speaker #2: Today we'll be sharing an update on the portfolio and performance during the first half of 2026. But before we get started, just a quick note on housekeeping.

Speaker #2: If you have any questions during the webcast, please use the Q&A tool available on your screen. We will address questions at the end of the presentation.

Speaker #2: And to ensure we cover as much as possible, we'll group similar questions and respond to them in one go. If we run out of time, or if you have additional questions afterward, please feel free to reach out to us via email or through the contact form on our website.

Andreea Mateescu: If we run out of time or you have additional questions afterward, please feel free to reach out to us via email or through the contact form on our website. Let me begin with a high-level overview of our H1 2026 results before Federica and Chris cover the portfolio in more detail over the next few slides. The H1 of the year was marked by heightened geopolitical uncertainty, intermittent market volatility, and evolving economic policy expectations. Events in the Middle East, shifting interest rate expectations, and ongoing concerns around growth and inflation contributed to a softer trading environment and selective pressures on valuations. Against this backdrop, PGPE NAV declined by 8.6% on a total return basis. This was primarily driven by portfolio developments, although favorable currency movements provided a partial offset. From a portfolio perspective, performance was impacted by limited number of investments.

Speaker #2: Let me begin with a high-level overview of our first half 2026 results, before Federica and Chris cover the portfolio in more detail over the next few slides.

Speaker #2: The first half of the year was marked by heightened geopolitical uncertainty, intermittent market volatility, and evolving economic policy expectations. Events in the Middle East, shifting interest rate expectations, and ongoing concerns around growth and inflation contributed to a softer trading environment and selective pressures on valuations.

Speaker #2: Against this backdrop, PGPE NAV declined by 8.6% on a total return basis. This was primarily driven by portfolio developments, although favorable currency movement provided a partial offset.

Speaker #2: From a portfolio perspective, performance was impacted by a limited number of investments. In particular, USIC, Emeria, and Pharmathen were the largest detractors during the period.

Andreea Mateescu: In particular, USIC, Emeria, and Pharmathen were the largest detractors during the period. Importantly, around two-thirds of the last 12-month portfolio decline can be attributed to just four assets, and Federica will cover this in more detail later in the presentation. Importantly, the broader portfolio showed signs of recovery, particularly among several inflection assets, while our younger vintages continue to deliver attractive early performance. Investments from 2024 and 2025, such as ROSEN Group, Velvet Care, and NPM Capital, performed well and supported portfolio development during the period. Chris will return to these themes later in the presentation. Despite the challenging backdrop, PGPE Limited continues to generate strong liquidity, receiving approximately EUR 111 million in distributions, which is equivalent to around 14% of net assets, while selectively deploying EUR 13 million into new investments during the period. This substantial level of realizations further strengthened our balance sheet and supported capital returns to shareholders.

Speaker #2: Importantly, around two-thirds of the last 12 months' portfolio decline can be attributed to just four assets, and Federica will cover this in more detail later in the presentation.

Speaker #2: Importantly, the broader portfolio showed signs of recovery, particularly among several inflection assets, while our younger vintages continue to deliver attractive early performance. Investments from 2024 and 2025, such as Rosen, VelvetCare, and MPM, performed well and supported portfolio development during the period.

Speaker #2: Chris will return to these themes later in the presentation. Despite the challenging backdrop, PGPE Limited continued to generate strong liquidity, receiving approximately €111 million in distributions, which is equivalent to around 14% of net assets, while selectively deploying €13 million into new investments during the period.

Andreea Mateescu: Chris will return to these themes later in the presentation. Despite the challenging backdrop, PGPE Limited continues to generate strong liquidity, receiving approximately EUR 111 million in distributions, which is equivalent to around 14% of net assets, while selectively deploying EUR 13 million into new investments during the period. This substantial level of realizations further strengthened our balance sheet and supported capital returns to shareholders.

Speaker #2: This substantial level of realizations further strengthened our balance sheet and supported capital returns to shareholders. Our liquidity position remained strong, with €51 million in cash and cash equivalents, alongside a fully undrawn revolving credit facility of €150 million.

Andreea Mateescu: Our liquidity position remains strong, with €51 million in cash and cash equivalents alongside a fully undrawn revolving credit facility of €150 million. Now turning to shareholder returns. We remain committed to return capital through both dividends and share buybacks. Almost €36 million was returned to shareholders during H1 2026, and that was from €22 million with the first interim dividend, which was paid in June, and just over €13 million through the share buybacks. Now, since then, a further €5 million has been deployed under the share buyback program, and those shares are once again being held in treasury. Overall, while results were affected by a handful of assets, the portfolio continues to demonstrate resilience through strong liquidity generation, a diversified investment base, and encouraging momentum in newer vintages.

Speaker #2: Now, turning to shareholder returns, we remain committed to returning capital through both dividends and share buybacks. Almost €36 million was returned to shareholders during the first half of 2026.

Speaker #2: And that was from €22 million with the first interim dividend, which was paid in June, and just over €13 million through the share buybacks.

Speaker #2: Now, since then, a further €5 million has been deployed under the share buyback program, and those shares are once again being held in treasury.

Speaker #2: Now, overall, while results were affected by a handful of assets, the portfolio continues to demonstrate resilience through strong liquidity generation, a diversified investment base, and encouraging momentum in newer vintages.

Speaker #2: Looking ahead, we believe the environment supports a gradual recovery in transaction activity and exits, and we remain focused on selective deployment into opportunities where we see the strongest long-term value creation potential.

Andreea Mateescu: Looking ahead, we believe the environment supports a gradual recovery in transaction activity and exits, and we remain focused on selective deployment into opportunities where we see the strongest long-term value creation potential. With that, I will hand over to Federica to discuss the portfolio in more detail.

Speaker #2: With that, I'll hand over to Federica to discuss the portfolio in more detail.

Speaker #3: Thank you, Andrea, and good morning, everyone, from my side as well. I'm going to walk you through the portfolio composition and the latest performance developments before handing it over to Chris for a deeper dive into some of the key portfolio positions and the latest trends.

Federica Cazzaniga: Thank you, Andreea, and good morning, everyone, from my side, too. I am going to walk you through the portfolio composition and the latest performance development before handing it over to Chris for a deeper dive in some of the key portfolio positions and latest trends. As usual, we start by looking at our portfolio as it is here on this slide. No surprises here as we continue to implement our strategy and investment objectives to offer investors access to a diversified portfolio of private equity direct assets as you can see here on screen. Our top 10 portfolio companies represent approximately 40% of the portfolio NAV and are therefore able to highlight the overall portfolio compositions and trends that we are observing.

Speaker #3: As usual, we start by looking at our portfolio. As it is here on this slide—and no surprises here—as we continue to implement, really, our strategy and investment objective: to offer investors access to a diversified portfolio of private equity direct assets, as you can see here on screen.

Speaker #3: Our top ten portfolio companies represent approximately 40% of the portfolio NAV, and they are really able to highlight the overall portfolio composition and trends that we have been observing.

Speaker #3: And it is the four worst spendings at the moment, highlighting two new companies that are entering our top 10 over the last six months, and I'm talking about Breitling and Version One.

Federica Cazzaniga: It is therefore worth spending a moment highlighting two new companies that are entering our top 10 over the last six months, and I am talking Breitling and Version 1, which you can see in positions 9 and 10 here. Breitling is a company that most of you will be familiar with. It is our Swiss luxury watchmaker, which has grown its NAV share in the portfolio, having seen some market headwinds abating most recently. The business is performing better over the past six months, with monthly growth in retail sales in each of the six months in H1, with leading recovery from the Americas business, and gradual signs of recovery also in the European part of the business. Version 1 as number 10 here, this is our leading digital transformation service provider in the UK and Ireland.

Speaker #3: Which you can see in positions 9 and 10 here. Breitling is a company that most of you will be familiar with. It's our Swiss luxury watchmaker.

Speaker #3: Which has grown its NAV share in the portfolio, having since some market headwinds abated. Most recently, the business is performing better over the past six months, with monthly growth in retail sales in each of the six months in H1, with leading recovery from the Americas business and gradual signs of recovery also in the European part of the business.

Speaker #3: Version One has a number ten here. This is our leading digital transformation service provider in the UK and Ireland, a company that is working with both public and private companies across complex business transformations and technology transformations.

Federica Cazzaniga: A company that is working with both public and private companies across complex business transformations and technology transformations, which we are increasingly focusing on AI strategy and implementation services. Not only does Version 1 work with leading technology providers such as Amazon Web Services, Microsoft, and Oracle, but the company is increasingly growing as a value-add engine across our very own portfolio companies. It has, for example, partnered with ISP, International Schools Partnership, another Partners Group portfolio company, to roll out an AI toolkit across 25 countries. We will also see shortly how Version 1 has partnered with another top 10 position in PGP Limited, Foundation Risk Partners, on a broad AI rollout across the platform, leading to notable operational value creation across both. Before moving on, maybe one note on the company that has left our top 10.

Speaker #3: And we are increasingly focusing on AI strategy and implementation services. So, not only does Version One work with leading technology providers such as Amazon Web Services, Microsoft, and Oracle, but the company is also increasingly growing as a value-add engine across our very own portfolio companies.

Speaker #3: And it has, for example, partnered with IFC, International Schools Partnership, and other partners through portfolio companies to roll out an AI toolkit across 25 countries. We'll also see shortly how Version One has partnered with another top 10 position in PGPE Limited Foundation, Risk Partners, on a broad AI rollout across the platform, leading to notable operational value creation across both.

Speaker #3: Before moving on, maybe one note on the company that has left our top 10. It is Clario, a US-based healthcare technology company that works with pharmaceutical and biotechnology corporates to run clinical trials.

Federica Cazzaniga: It is Clario, a US-based healthcare technology company that works with pharmaceutical and biotechnology corporates to run clinical trials. We have fully executed our sale to Thermo Fisher Scientific in H1 at an enterprise value of over $9 billion US, realizing significant cash flow distribution for PGP Limited, as we can see on the following slide. Clario was indeed our largest driver when it comes to distribution during the first half of 2026, realizing approximately EUR 23 million for PGP Limited, but it was not the only driver. As you can see, we realized over EUR 110 million in total, but importantly, there was an even contribution across various companies. Clario was the largest driver, but definitely not the only one. This really highlights the benefit of portfolio construction and diversification at the onset, and then driving liquidity diversification further down the line.

Speaker #3: We have fully executed our sale to Thermo Fisher Scientific in H1 at an enterprise value of over $9 billion. This has resulted in significant cash flow distributions for PGPE Limited, as we can see on the following slide.

Speaker #3: Clario was indeed our largest driver when it comes to distribution during the first half of 2026, realizing approximately €23 million for PGPE Limited.

Speaker #3: But it was not the only driver. As you can see, we realized over €110 million in total, but importantly, there was an even contribution across various companies.

Speaker #3: So Clario was the largest driver, but definitely not the only one. This really highlights the benefit of portfolio construction and diversification at the onset, and then driving liquidity diversification further down the line.

Speaker #3: This also highlights the ability to realize successful outcomes in a rather volatile environment, as Andrea mentioned. And, in fact, it realized multiple on-money on last 12 months' exit has been close to three times invested money.

Federica Cazzaniga: This also highlights the ability to realize successful outcomes in a rather volatile environment, as Andreea mentioned. In fact, we realized multiple on money on last 12 months exit, as being close to 3x invested money. This is very much in line with our historical results achieved for this portfolio. Beyond Clario, maybe a quick mention to Galderma and Vishal here, two of the other largest drivers and both listed positions in the portfolio. Maybe Galderma first, our Swiss-headquartered skincare company, was fully realized during the first half of 2026 when we executed a full sell-down on the listed position, realizing a money multiple in excess on 3.5x at time. We also continue to further reduce our position in Vishal, the Indian value retailer. This time, we continue obviously to retain exposure to the company, but monetized over EUR 15 million for PGP Limited.

Speaker #3: This is very much in line with our historical results achieved for this portfolio. Beyond Clario, maybe a quick mention of Galderma and Vishal here too, as the other largest drivers.

Speaker #3: And both listed positions in the portfolio—maybe Galderma first, our Swiss-headquartered skincare company—was fully realized during the first half of 2026, when we executed a full sell-down of the listed position, realizing a money multiple in excess of 3.5 times.

Speaker #3: And we also continued to further reduce our position in Vishal, the Indian value retailer. This time, we continue to retain exposure to the company, but monetized over $15 million for PGPE Limited.

Speaker #3: Vishal has experienced a period of share price volatility, especially in Q1 2026. However, the company has since recovered and continues to deliver strong operating performance, supported by revenue growth and continued sales growth across stores and in the country.

Federica Cazzaniga: Vishal has experienced a period of share price volatility, especially in Q1 2026, however, recovered since and continued to deliver strong operating performance, supported by revenue growth and continued sales growth across stores and in the country. You can see that the company is currently marked above 8.5x money multiple, but it is important to stress that the DPI for the company is already close to 5x. Significantly realized outcomes across the portfolio. Both Galderma and Vishal are part of what we consider our more mature portfolio that continues to sort of decline in size within our NAV while generating proceeds that are then redeployed into more recent vintages. That is what we are going to look at in the next slide. On the back of these realizations, we see indeed continued progress in repositioning the portfolio towards younger vintages and also inflection vintages.

Speaker #3: So you can see that the company is currently marked above an 8.5x money multiple, but it's important to stress that the DPI for the company is already close to 5x.

Speaker #3: So, significantly realized outcomes across the portfolio. And both Galderma and Vishal are part of what we consider our more mature portfolio. That continues to sort of decline in size within our NAV.

Speaker #3: Well, generating proceeds that are then redeployed into more recent vintages. And that's what we're going to look at in the next slide.

Speaker #2: On the back of these realizations, we see indeed continued progress in repositioning the portfolio towards younger vintages and also inflection vintages. But maybe we start from the mature ones.

Federica Cazzaniga: But maybe we start from the mature ones. As I mentioned, Galderma and Vishal Mega Mart were some of the largest, and Vishal Mega Mart remains one of the largest components of this vintage cohort. Needless to say that these being more mature assets, approximately 80% of the amount we had invested pre-2021 has been fully realized. So what we retain is only a portion of our investment in these vintages. There we have already realized a 2.7x multiple of capital for vintages in pre-2021. The remaining assets are now marked just below 2x on a blended basis, and many of them not only continue to support our liquidity in the portfolio, but also retain upside as they approach the end of their holding period. Inflection vintages, so the vintages between 2021 and 2023 now comprise approximately half of the NAV of the portfolio.

Speaker #2: As I mentioned, Galderma and Vishal were some of the largest, and Vishal remains one of the largest components of this vintage cohort. Needless to say, with these being more mature assets, approximately 80% of the amounts we had invested pre-2021 have been fully realized.

Speaker #2: So what we retain is only a portion of our investments in these vintages. And there we have already realized a 2.7x multiple of capital for vintages in pre-2021.

Speaker #2: The remaining assets are now marked just below 2x on a blended basis. And many of them not only continue to support our liquidity in the portfolio, but also retain upside as they approach the end of their holding period.

Speaker #2: Inflection vintages, so the vintages between 2021 and 2023, now comprise approximately half of the NAV of the portfolio. And despite some related headwinds, most investments in this cohort remain marked above cost.

Federica Cazzaniga: Despite some diligence-related headwinds, most investments in this cohort remain marked above cost, but also positioned to deliver stronger EBITDA growth momentum going forward, and we will see some examples of this in a moment. While some investments are continuing to face some company-specific challenges, we will mention companies like DiversiTech, Forterro, Foundation Risk Partners that are amongst our top 10 and continue to perform well and grow EBITDA with solid momentum. Our younger companies, now representing just over 20% of the NAV of the portfolio, continue to compound value in line or even above our underwriting expectations, and a blended IRR that is close to 20%, and many of them recording double-digit LTM EBITDA growth. That is very important as we continue to grow this cohort in the portfolio.

Speaker #2: But also positioned to deliver stronger EBITDA growth momentum going forward. And we'll see some examples of this in a moment. While some investments are continuing to face some company-specific challenges, we'll mention companies like Diversitec, Fortero, and Foundation Risk Partners that are amongst our top 10 and continue to perform well and grow EBITDA with solid momentum.

Speaker #2: Our younger companies, now representing just over 20% of the NAV of the portfolio, continue to compound value in line with, or even above, our underwriting expectations.

Speaker #2: And a blended IRR that's close to 20%. Many of them are recording double-digit LTM EBITDA growth. That's very important as we continue to grow this cohort in the portfolio.

Speaker #2: And Chris will take us through some examples again in a moment. But before we move there, let's take a look at the overall portfolio performance for the last 12 months.

Federica Cazzaniga: Chris will take us through some examples again in a moment, but before we move there, let us take a look at the overall portfolio performance when it comes to the last 12 months. First of all, when we look at the portfolio metrics for our top 20 companies, we can see that we continue to record last 12 months EBITDA growth in the mid-single digit, and this very much reflects an environment that is characterized by high geopolitical uncertainty, the more intermittent market volatility, but also more evolving policy expectations that are impacting some segments and businesses. Last 12 months valuation multiples have adjusted down at the margin, again, in line with the broader market environment, and the blended leverage metric has remained mostly stable across businesses.

Speaker #2: So first of all, when we look at the portfolio metrics for our top 20 companies, we can see that we continue to record last 12 months' EBITDA growth in the mid-single digits.

Speaker #2: And this very much reflects an environment that's characterized by high geopolitical uncertainty, more intermittent market volatility, but also evolving policy expectations that are impacting some segments and businesses.

Speaker #2: Valuation multiples over the last 12 months have adjusted down at the margin, again in line with the broader market environment. The blended leverage metric has remained mostly stable across businesses; it ticked up on a weighted average basis, primarily driven by PCI Pharma.

Federica Cazzaniga: It ticked up on a weighted average basis, primarily driven by PCI Pharma Services, where we are from this quarter reflecting higher debt levels under the new ownership after we rolled our minority position in Q4 2025. Looking now at the last 12 months portfolio performance breakdown, we have broken this out in the chart at the bottom of the slide to highlight the vintage year dynamics I touched on just earlier that remain visible here, but also to highlight the impact of a limited number of detractors that continue to shape performance as we discussed in previous quarters. These detractors offset muted returns elsewhere and resulted in a -8.3% performance at the portfolio level over the last 12 months to June 2026. On the one hand, we see younger assets that are contributing strongly on the back of solid performance, despite representing only 20% or so of the NAV.

Speaker #2: Where we are from this quarter reflects higher debt levels under the new ownership, after we rolled our minority position in Q4 2025. Looking now at the last 12 months' portfolio performance breakdown, we've broken this out in the chart at the bottom.

Speaker #2: Of the slide to highlight the vintage year dynamics I touched on just earlier, that remain visible here. But also to highlight the impact of a limited number of distractors that continue to shape performance, as we discussed in previous quarters.

Speaker #2: These distractors offset muted returns elsewhere and resulted in a minus 8.3% performance at the portfolio level over the last 12 months to June 2026. On the one hand, we see younger assets that are contributing strongly.

Speaker #2: On the back of solid performance, despite representing only a 20 or so percent of the NAV. And also inflection vintages excluding obviously the four assets that we're singling out here, continue to positively contribute to return a weak at a slower pace.

Federica Cazzaniga: Also inflection vintages, excluding obviously the four assets that we are singling out here, continue to positively contribute to return, albeit at a slower pace. One word on the mature vintages. This is, as I mentioned, a more concentrated cohort that was largely impacted by market-driven dynamics, specifically in our listed holdings. For example, Vishal and KinderCare saw a higher share price volatility and pressure during the H1 of the year, which is why we see a negative contribution from the mature vintage here. Given the relevance and the relative weight of the four assets highlighted here, Pharmathen, USIC, Emeria, and Ammega, we thought of providing a little bit more context on the challenges faced by these four assets and also an asset plan for these portfolio companies as we go forward. We can look at that on the next slide.

Speaker #2: One word on the mature vintages. This is, as I mentioned, a more concentrated cohort. That was largely impacted by market-driven dynamics. Specifically, in our listed holdings—for example, Vishal and Kindercare—saw higher share price volatility and pressure during the first half of the year, which is why we see a negative contribution from the mature vintage here.

Speaker #2: But given the relevance and the relative weight of the four assets highlighted here—Pharma, USAC, Ameria, and Omega—we thought of providing a little bit more context on the challenges faced by these four assets, and also an asset plan for these portfolio companies as we go forward.

Speaker #2: And we can look at that on the next slide. I'll go quickly clockwise here, to start with USAC—the largest detractor to performance in the first half of the year.

Federica Cazzaniga: I will go quickly clockwise here to start with USIC, the largest detractor to performance in the H1 of the year. This is a company, a US-based provider of underground utility locating services, and a company we first invested in 2018, realizing then a money multiple of over 3x in 2022, where we brought in a new partner and extended our ownership to continue growing the company. Since then, USIC was negatively impacted by growing trends towards customer insourcing initiatives, but also some operational headwinds over the reporting period, H1 2026, that resulted in a reduction in our valuation. Despite the short-term challenges, Partners Group continue to work closely with the company and the board as well on stabilization measures.

Speaker #2: This is a company—well, a US-based provider of underground utility locating services—and a company where we first invested in 2018, realizing then a money multiple of over 3x in 2022, where we brought in a new partner and extended our ownership to continue growing the company.

Speaker #2: Since then, USAC was negatively impacted by growing trends towards customer in-sourcing initiatives, but also some operational headwinds over the reporting period H1 2026 that resulted in a reduction in our valuation.

Speaker #2: Despite the short-term challenges, partners will continue to work closely with the company and the Board as well on stabilization measures. We focus on cost actions, but also technician productivity, and on a more strategic repositioning towards higher-growth segments.

Federica Cazzaniga: We focus on cost actions, but also technician productivity and, as well, on a more strategic repositioning towards higher growth segments and increasing digital and AI-enabled operations for this business. As for Emeria, our European real estate service provider, similar story here, where we invested in the company 10 years ago in 2016, realizing a 3x money multiple in 2022, where we then reiterated our conviction in the business and extended again our ownership. Just after the re-underwriting, the softer real estate market trends started to weigh in on transaction volume, impacting Emeria's brokerage business and at the same time increasing interest rates, raised financing costs, limiting more of the M&A activity and the platform expansion strategy that we had set out for Emeria. Importantly, despite these market-driven challenges, Emeria continues to focus on organic growth acceleration, but also on executing on an agentic AI program most recently.

Speaker #2: And increasing digital, NNI-enabled operation for this business. As for Ameria, our European real estate service provider, similar story here, where we invested in the company 10 years ago in 2016, realizing a 3x money multiple in 2022, where we then reiterated our conviction in the business and extended again our ownership.

Speaker #2: Just after the re-underwriting, the softer real estate market trends started to weigh on transaction volumes, impacting Ameria's brokerage business. At the same time, increasing interest rates raised financing costs, further limiting M&A activity and the platform expansion strategy that we had set out for Ameria.

Speaker #2: Importantly, despite these market-driven challenges, Ameria continues to focus on organic growth acceleration, but also on executing on an agentic AI program, most recently. And this is really across all divisions: customer service, property management, accounting, legal, and also administration.

Federica Cazzaniga: This is really across all divisions, customer service, property management, accounting, legal, and also administration. So really working towards a strategic objective of becoming an AI-first residential real estate operating platform for the European market. I will go to Ammega. Here we have a rather different story, a global leader in conveyor and power transmission belting, which Partners Group created in 2018 by merging two segment leaders, Ammeraal Beltech and Megadyne. Here, the company has really been navigating a broader market softness with performance coming under pressure due to the extended industrial downturn that commenced in 2023, combined with cost inflation and general competitive pressures. Despite that, we have seen the company maintaining a steady EBITDA and also margins, so really testifying the quality of the business here.

Speaker #2: So, really working towards a strategic objective of becoming an AI-first residential real estate operating platform for the European market. I'll go to Omega. Here, we have a rather different story.

Speaker #2: A global leader in conveyor and power transmission belting, which Partners Group created in 2018 by merging two segment leaders, Ammeraal Beltech and Megadyne. Here, the company has really been navigating a broader market softness, with performance coming under pressure due to the extended industrial downturn that commenced in 2023, combined with cost inflation and general competitive pressures.

Speaker #2: Despite that, we've seen the company maintaining a steady EBITDA and also margins, so really testifying to the quality of the business here. But we have decreased our valuation for the company in Q2 2026, reflecting broader peer derating across the industry and generally more muted market sentiment during the period.

Federica Cazzaniga: But we have decreased our valuation for the company in Q2 2026, reflecting broader peer derating across the industry and general more muted market sentiment during the period. Here we continue to work with management to refocus on commercial acceleration, operational efficiency, and generally customer focus, not only to maintain earnings growth and margins, but also to expand them as we continue to navigate a more challenging backdrop. Then finally, Pharmathen, which was, in this case, the third largest detractor. Here we touched on the company before, as we have had some regulatory discussion, especially on the US side with the FDA, that culminated in an import alert in Q1 2026, restricting access to the company for the US market that eventually altered the company outlook and really business strategy.

Speaker #2: Here, we continue to work with management to refocus on commercial acceleration, operational efficiency, and a general customer focus—not only to maintain earnings growth and margins, but also to expand them as we continue to navigate a more challenging backdrop.

Speaker #2: And then finally, Pharma Sen, which was in this case the third-largest distractor. Here, we touched on the company before, as we've had some regulatory discussion, especially on the US side with the FDA, that culminated in an import alert in Q1 2026, restricting access to the company for the US market. That eventually altered the company outlook and, really, business strategy.

Speaker #2: Partners Group has worked on leadership renewal and initially on remediation access. However, in light of continued operational challenges and regulatory challenges, Partners Group has written down in full the equity investment in Pharma Sen in April 2026.

Federica Cazzaniga: Partners Group has worked on leadership renewal and initially on remediation access. However, in light of continued operational challenges and regulatory challenges, Partners Group has written down in full the equity investment in Pharmathen in April 2026. So you will see that this now touches 0% of portfolio NAV. Partners Group has also ceased any further funding to the company. Currently working with Pharmathen and the lenders to stabilize the business, devise a remediation plan, and then support an orderly change of ownership from there. So clearly, with the exception of Pharmathen, the other three companies here, USIC, Emeria, and Ammega, remain fundamentally strong businesses, well-positioned to overcome temporary pressures that I have highlighted by strengthening a client focus and as well as leveraging their leading market positioning, but also unlocking technology-driven upside across the board.

Speaker #2: So you'll see that this now touches 0% of portfolio NAV, and Partners Group has also ceased any further funding to the company. Currently, they are working with PharmaSen and the lenders to stabilize the business, devise a remediation plan, and then support an orderly change of ownership from there.

Speaker #2: So clearly, with the exception of PharmaSen, the other three companies here—USAC, Ameria, and Omega—remain fundamentally strong businesses, well positioned to overcome the temporary pressures that I've highlighted.

Speaker #2: My strengthening client focus, and as well as leveraging their leading market positioning, but also unlocking technology-driven upside across the board. I'll pass it over now to Chris, who will zoom out and share a little bit more perspective on the overall portfolio, contextualizing these challenges.

Federica Cazzaniga: I will pass it over now to Chris, who will zoom out and share a little bit more perspective on the overall portfolio, contextualizing these challenges in the broader dynamics.

Speaker #2: In the broader dynamics.

Speaker #1: Yeah, I think it is essential to put this a little bit into perspective and look at the broader portfolio, right? So, I'm here on slide number 11.

Christopher Maas: Yeah. I think it is essential to put this a little bit into perspective and look at the broader portfolio, right? So I am here on slide 11. We shouldn't lose sight of the fact that if you look at this portfolio, which is quite diversified, there is about two-thirds, 64% of it, which is actually performing on plan or is outperforming. You have a number of portfolio companies in there where, based on our latest budgeting and business plans, we expect them to grow double digits earnings in the next 18 months. So the issues that I think Federica went through into details, they are really concentrated in two buckets. That is the ones you see on the right-hand side. First of all, you have got challenged assets.

Speaker #1: And we shouldn't lose sight of the fact that, if you look at this portfolio, which is quite diversified, about two-thirds—64%—of it is actually performing on plan or is outperforming.

Speaker #1: And you have a number of portfolio companies in there where, based on our latest budgeting and business plans, we expect them to achieve double-digit earnings growth in the next 18 months.

Speaker #1: So the issues that I think Federica went through in detail, they are really concentrated in two buckets. That's the ones you see on the right-hand side.

Speaker #1: First of all, you've got challenged assets. These are the likes of the PharmaSen and USIC that Federica described, experiencing really structural issues—operational or financial—based on their capital structure, that we are working on, but with really structural nature.

Christopher Maas: These are the likes of Pharmathen and USIC that Federica described, experiencing really structural issues operationally or financially based on their capital structure, that we are working on, but with really structural nature. You also have a series of investments that are more delayed in their value creation plan. Think about this as being investments that have really experienced a severe change in the macro environment that they have been trading in, and where all our growth initiatives have been so far a little bit masked by some of the challenges they had to face. With Emeria, the fact that the transaction in property services in France has been going down. Breitling, the fact that also the Swiss luxury watch market has been trending down after 2023.

Speaker #1: You also have a series of investments that are more delayed in their value creation plan. Think about this as being investments that have really experienced a severe change in the macro environment that they've been trading in, and where all our growth initiatives have so far been a little bit masked by some of the challenges they had to face, right?

Speaker #1: So, Ameria, the fact that the transaction property services in France have been going down—Breitling, the fact that also the Swiss luxury watch market has been trending down after 2023.

Speaker #1: But what we do expect, and the visibility that we have on, is that part of that delayed uplift is progressively going to move to the left.

Christopher Maas: What we do expect, and the visibility that we have on, is that part of that delayed uplift is progressively going to move to the left. We actually have sight on the earnings of some of those portfolio companies growing double digits next year. If you flip to slide number 12, this has actually been validated recently in the trading performance of some of those investments, some of those sectors that are a bit early indicators. The Swiss luxury watch industry has been recovering, and Breitling has seen very consistent growth. If I take the US market in the first part of this year, growing above 10% year-on-year for a few months in a row. On the pharmaceutical side, we have Wedgewood Pharmacy, which specializes in compounding medication for animals in the US.

Speaker #1: And we actually have sight on the earnings of some of those portfolio companies growing double digits next year. If you flip to slide number 12, this has actually been validated recently in the trading performance of some of those investments—some of those sectors that are a bit early indicators.

Speaker #1: The Swiss luxury watch industry has been recovering, and Breitling has seen very consistent growth. If I take the US market, in the first part of this year, we grew above 10% year on year.

Speaker #1: And for a few months in a row. On the pharmaceutical side, we have Wedgwood Pharmacy, which serves animals in the US. That’s a company that we trust in terms of earnings.

Christopher Maas: That is a company that trust in terms of earnings, they trusted in 2025 in Q4, and since then we have seen a very consistent recovery in earnings by north of 20%. Same story with VelocityEHS, and there is a longer list of companies that are seeing this recovery. Clearly, we want to remain prudent, but we are seeing signs across those challenged and delayed assets in H1 of this year of a tangible pickup in trading, and which we expect will support performance of those investments in the next 12 months. On the following slide 13, we are also making progress turning around and improving some of the assets that we invested in the 2021, 2023 vintages. These are the inflection vintages that Federica mentioned earlier in one of the pie charts that she referred to.

Speaker #1: They trust in 2025, in the fourth quarter, and since then, we have seen a very consistent recovery in earnings by north of 20%. Same story with velocity H&S.

Speaker #1: And there is a longer list of companies that are seeing this recovery, right? So, clearly, we want to be—and we want to remain—prudent.

Speaker #1: But we are seeing signs across those challenged and delayed assets in the first half of this year of a tangible pickup in trading, which we expect will support the performance of those investments in the next 12 months.

Speaker #1: On the following slide, slide 13, we are also making progress, turning around, and improving some of the assets that we invested in the 2021 vintages.

Speaker #1: These are the inflection vintages that Federica mentioned earlier in one of the pie charts she referred to. We've got two companies at the top here that operate in the heating, ventilation, and air conditioning space.

Christopher Maas: We have two companies at the top here that operate in the heating, ventilation, and air conditioning space. I think you have all witnessed a very hot summer. This is a market that has seen very strong tailwinds. Both those investments, PremiStar on the left, which is one of the largest commercial HVAC service provider in the US, but also DiversiTech on the right, which manufactures and distributes parts for that sector, both of them at some point had fallen below cost. With active turnarounds of both companies and the market picking up, we have now seen structural progress, and both of them are currently marked above 1.5x the initial capital. A story that is similar also at the bottom left, if you look at Forefront Dermatology, you might remember we have a number of companies in the portfolio which are US healthcare services companies.

Speaker #1: I think you've all witnessed a very hot summer. This is a market that has seen very strong tailwinds. Both those investments—Premise Star on the left, which is one of the largest commercial HVAC service providers in the US, and Diversitech on the right, which manufactures and distributes parts for that sector.

Speaker #1: Both of them, at some point, had fallen below cost. And with active turnarounds of both companies and the markets picking up, we have now seen structural progress.

Speaker #1: And both of them are currently marked above one and a half times the initial capital. A story that is similar also at the bottom left.

Speaker #1: If you look at Forefront Dermatology, you might remember we have a number of companies in the portfolio which are US healthcare services companies. That is part of the portfolio that really suffered post-COVID, when you think about some of the wage increases, inflationary trends, and the limited ability to pass through price increases rapidly to insurance carriers, Medicare, and Medicaid.

Christopher Maas: That is part of the portfolio that really suffered post-COVID when you think about some of the wage increases, inflationary trends, and the limited ability to pass through price increases rapidly to insurance carriers and Medicare and Medicaid. But Forefront, and some others, have now seen tangible progress. We have seen earnings at Forefront growing quite significantly, double digits in the last 12 months. Then finally, we have got some like Forterro, which is more in the software space, which continues growing really healthily, double-digit earnings growth. Business that has really improved its recurring nature of its sales, and one which would be a good exit candidate if I look at the pipeline in the next six to 18 months. Across the portfolio on slide number 14.

Speaker #1: But Forefront and some others have now seen tangible progress. Earnings at Forefront have grown quite significantly—double digit in the last 12 months. And then finally, we've got some, like Fortero, which is more in the software space, which continues growing really healthily.

Speaker #1: Double-digit earnings growth. A business that has really improved its recurring nature of sales, and one which would be a good exit candidate if I look at the pipeline in the next 6 to 18 months.

Speaker #1: Across the portfolio, on slide number 14, we've also really started seeing meaningful impact from all the artificial intelligence initiatives that we started rolling out a few years ago.

Christopher Maas: Across the portfolio, we have also really started seeing meaningful impact from all the artificial intelligence initiatives that we have started rolling out a few years ago. Those things take time. It does not happen overnight. But, as we might have described to you in the past, we have our technology team internally at Partners Group that has rolled out a very systematic approach across all portfolio companies to roll out artificial intelligence use cases. We have an adoption rate across our portfolio at about 90%. Today, that team and our portfolio companies in private equity are working on about USD 170 million of EBITDA opportunities that are visible for 2027. This is all being supported also by two portfolio companies of ours at the bottom left, which are specialists in AI and digital services.

Speaker #1: Those things take time; it doesn't happen overnight. But as we might have described to you in the past, we have our technology team internally—our Partners Group—that has rolled out a very systematic approach across all portfolio companies to roll out artificial intelligence use cases.

Speaker #1: We have an adoption rate across our portfolio at about 90%. And today, that team and our portfolio companies in private equity are working on about $170 million of EBITDA opportunities that are visible for 2027.

Speaker #1: And this is all being supported also by two portfolio companies of ours at the bottom left, which are specialists in AI and digital services.

Speaker #1: One of them is CloudFlight, which is based in Germany, and the other one is Version One, based in Ireland and the United Kingdom. Tangibly, if we look at an example on the following page, what does that mean?

Christopher Maas: One of them is Cloudflight, which is based in Germany, and the other one is Version 1, based in Ireland and the United Kingdom. Tangibly, if we look at an example on the following page, what does that mean? One of the portfolio companies where we have seen the strongest progress and one of the early adopters in the portfolio was Foundation Risk Partners. That is a business that we own in the US. They are a specialist insurance brokerage business. Together with the help of Version 1, they have embarked into the development and rollout of a few AI use cases in the organization, and two of them have now yielded already some strong results, impacting positively EBITDA by USD 10 million, improving margins by 120 bps. One of those solutions is a solution that allows the business to improve its policy processing cycle for new clients by about 94%.

Speaker #1: One of the portfolio companies where we’ve seen the strongest progress, and one of the early adopters in the portfolio, was Foundation Risk Partners. That’s a business that we own in the US.

Speaker #1: They're a specialist insurance brokerage business, and together with the help of Version One, they've embarked on the development and rollout of a few AI use cases in the organization. Two of them have already yielded some strong results.

Christopher Maas: Together with the help of Version 1, they have embarked into the development and rollout of a few AI use cases in the organization, and two of them have now yielded already some strong results, impacting positively EBITDA by USD 10 million, improving margins by 120 bps. One of those solutions is a solution that allows the business to improve its policy processing cycle for new clients by about 94%.

Speaker #1: Impacting EBITDA positively by $10 million, improving margins by 120 basis points. One of those solutions is a tool that allows the business to improve its policy processing cycle for new clients.

Speaker #1: By about 94%. That has led to a doubling in close rates. And the second one was more of an efficiency gain. We had a lot of people that were focused on a human review of all policies being checked.

Christopher Maas: That has led to a doubling in close rates. The second one was more of an efficiency gain. We had a lot of people that were focused on a human review of all policies being checked, and this is now automated by that agent. That is something you will continue seeing more and more momentum, and we will see more and more results coming from this across the portfolio in the coming years. Again, clearly, we do recognize the fact that the performance, especially in the H1 across the portfolio, has been disappointing. But these initiatives, they do take time to pay off, and we will continue seeing them translating into earnings gains in the next H2 and in 2027. Where the performance has been strong, even in the H1, is on the following page. It is all those kind of portfolios, so slide number 16.

Speaker #1: And this is now automated by that agent. So that's something you'll continue seeing more and more momentum with, and we will see more and more results coming from this across the portfolio in the coming years.

Speaker #1: Again, clearly, we do recognize the fact that the performance, especially in the first half across the portfolio, has been disappointing. But these initiatives do take time to pay off.

Speaker #1: And we will continue seeing them translating into earnings gains in the next half of the year and in 2027. Where the performance has been strong, even in the first half, is on the following page.

Speaker #1: It's all those kinds of portfolio—so, slide number 16. It's all those portfolio companies that we've been investing in, those new investments we've made since 2024.

Christopher Maas: It's all those portfolio companies that we've been investing in, those new investments we've made since 2024. These are strong vintage years for private equity. We already have some winners that are emerging very early on. You've got two companies at the top that are mentioned, ROSEN, which specializes in critical infrastructure inspection services in Europe. You've got Velvet Care, which is a leader in hygiene paper products, also in Europe. Both of those companies, we've been owning them for less than 2 and a half years. Both of them are on track today and are close to about 2 times return on capital.

Speaker #1: These are strong vintage years for private equity. We already have some winners that are emerging very early on. You've got two companies at the top that are mentioned: Rosen, which specializes in critical infrastructure inspection services in Europe.

Speaker #1: And you've got VelvetCare, which is a leader in hygiene paper products, also in Europe. Now, both of those companies—we've been owning them for less than two and a half years.

Speaker #1: Both of them are on track today and are close to about two times return on capital. And in the case of Rosen, we've already been able, thanks to the strong earnings growth and cash generation, we've been able to recap the business twice and pay two dividends.

Christopher Maas: In the case of ROSEN, we've already been able, thanks to the strong earnings growth and cash generation, we've been able to pay and recap the business twice and pay two dividends. We also have some early outperformers that are a bit younger in the portfolio, 2025 investments, for example, like MPM, premium cat food business, which is very successfully penetrating the US market, and is also off to a very strong start. We also have companies like Pest Control Partnership, which is a ground-up that we started from scratch in the pest control industry in the UK, France, and Germany, and which is seeing very strong early performance and growth. If you look at the next slide, we are clearly, and as those investments just suggested, we are at an attractive point in the cycle for new private equity investments.

Speaker #1: We also have some early outperformance that are a bit younger in the portfolio—2025 investments, for example, like MPM, a premium cat food business, which is very successfully penetrating the US market.

Speaker #1: And is also off to a very strong start. And then we also have companies like Pest Control Partnership, which is a ground-up that we started from scratch.

Speaker #1: In the pest control industry in the UK, France, and Germany. And which is seeing very strong early performance and growth. We are, if you look at the next slide, we are clearly, and as those investments just suggested, we are at an attractive point in the cycle for new private equity investments.

Speaker #1: That's why those new vintage investments are so essential and so interesting. Now, clearly, in the first half of the year, the investment activity has been a bit softer for the reasons that Andrea mentioned.

Christopher Maas: That's why those new vintage investments are so essential and so interesting. Clearly in the first half of the year, the investment activity has been a bit softer for the reasons that Andreea mentioned. Macro environment was very volatile, difficult to transact. But the pipeline remains really healthy. You've got a few thematics on that slide that are high conviction that we've been actively developing for years. On the left-hand side, we are in the final stages as we speak now, in the process of a UK electricity grid service provider. High conviction thematic there for us on the back of all the growth in power demand you have from data centers, but also the aging nature of the electricity grid in the UK. We have signed, and we'll be able to share more details later on.

Speaker #1: The macro environment was very volatile and difficult to transact in, but the pipeline remains really healthy. You've got a few thematics on that slide that are high conviction and that we've been actively developing for years.

Speaker #1: On the left-hand side, we are in the final stages—as we speak now—of the process with a UK electricity grid service provider. There's high conviction on that theme for us, given all the growth in power demand from data centers, but also considering the aging nature of the electricity grid in the UK.

Speaker #1: We have signed and will be able to share more details later on. We've signed, in the middle of the page, a small first nucleus for a sports agency in Europe.

Christopher Maas: We signed in the middle of the page, a small first nucleus for a sports agency in Europe that we intend to use as a platform to buy and build. It's an exciting space. On the very far right-hand side, after years of looking at the clean beauty segments, which is growing at about twice the pace of the broader beauty and wellness industry, we have finally announced an exclusivity on a transaction in France, which we can see on slide number 18, which is the acquisition of Aroma-Zone on the next page. A company based in France. A very well-known brand of beauty and wellness products in France. High-quality products, natural ingredients at accessible prices. This is a company that since 2021 has tripled its revenues, increased its number of stores sevenfold.

Speaker #1: That we intend to use as a platform to buy and build. It's an exciting space. And then, on the very far right-hand side, after years of looking at the clean beauty segment, which is growing at about twice the pace of the broader beauty and wellness industry, we have finally announced an exclusivity on a transaction in France, which you can see on slide number 18.

Speaker #1: Which is the acquisition of AromaZone on the next page, a company based in France. It is a very well-known brand of beauty and wellness products in France.

Speaker #1: High-quality products, natural ingredients, at accessible prices. And this is a company that, since 2021, has tripled its revenues and increased its number of stores sevenfold.

Speaker #1: They've got about 5 million customers, and we're now looking forward to really accelerating the international expansion that they started. The transaction is still subject to regulatory approvals.

Christopher Maas: They've got about 5 million customers, and we are now looking forward to really accelerating the international expansion that they started. The transaction is still subject to regulatory approvals, but we target to close it by the end of the year. With that, let me head back to Andreea to wrap this up.

Speaker #1: But we target to close it by the end of the year. With that, let me hand back to Andrea to wrap this up.

Speaker #2: Thank you, Chris. So, before we move to the questions, let me briefly summarize the key messages you heard today and also our priorities going forward.

Andreea Mateescu: Thank you, Chris. Before we move to the questions, let me briefly summarize the key messages you heard today and also our priorities going forward. First, our focus remains on driving performance momentum across the portfolio. While a small number of investments weighed on results during H1, we continue to see encouraging progress across a broader group of portfolio companies. We are focused on compounding our emerging winners, while at the same time supporting value recovery initiatives in assets that have experienced temporary headwinds. Importantly, a growing cohort of newer investments is performing well and provides an additional source of future value creation. Second, we remain focused on maintaining strong realization momentum. During H1 2026, the portfolio generated almost 14% of NAV in distributions, demonstrating our ability to create liquidity even in a more challenging environment.

Speaker #2: First, our focus remains on driving performance momentum across the portfolio. While a small number of investments wait on results during the first half, we continue to see encouraging progress across a broader group of portfolio companies.

Speaker #2: We are focused on compounding our emerging winners, while at the same time supporting value recovery initiatives in assets that have experienced temporary headwinds. Importantly, a growing cohort of newer investments is performing well and provides an additional source of future value creation.

Speaker #2: Second, we remain focused on maintaining strong realization momentum. During the first half of 2026, the portfolio generated almost 14% of NAV in distributions, demonstrating our ability to create liquidity even in a more challenging environment.

Speaker #2: We continue to see opportunities to realize value through the ongoing monetization of listed holdings, as well as active exit preparation across a number of mature investments.

Andreea Mateescu: We continue to see opportunities to realize value through the ongoing monetization of listed holdings, as well as active exit preparation across a number of mature investments. While transaction and exit markets are gradually improving, opportunities are becoming increasingly differentiated across sectors and business models. We believe that selectivity remains critical. Finally, also, while deployment was relatively contained during H1 and against a more volatile market backdrop, our near-term pipeline, as you also just heard, remains robust and diversified across our core thematic sectors. Combined with a more supportive private equity environment, this positions BGP Limited to selectively deploy capital into high-quality assets at attractive entry levels, supporting the portfolio long-term growth potential. Now just a few more words on this slide.

Speaker #2: Now, while transaction and exit markets are gradually improving, opportunities are becoming increasingly differentiated across sectors and business models. Therefore, we believe that selectivity remains critical.

Speaker #2: Now, finally, although deployment was relatively contained during the first half and occurred against a more volatile market backdrop, our near-term pipeline, as you also just heard, remains robust and diversified across our core thematic sectors.

Speaker #2: And combined with a more supportive private equity environment, this positions BGP Limited to selectively deploy capital into high-quality assets at attractive entry levels, supporting the portfolio’s long-term growth potential.

Speaker #2: And now, just a few more words on this slide. The company has been listed on the London Stock Exchange since 2007, and over multiple market cycles has maintained a disciplined focus on long-term value creation.

Andreea Mateescu: The company has been listed on the London Stock Exchange since 2007, and over multiple market cycles has maintained a disciplined focus on long-term value creation. Today, BGP Limited provides immediate access to a diversified private equity portfolio of more than 70 companies, and that is across industries, geographies, and vintages. This portfolio benefits from a balanced mix of mature investments approaching realizations and newer ones that are beginning to demonstrate encouraging operational momentum. From a balance sheet perspective, we remain well-positioned with EUR 51 million in cash and cash equivalents and a fully undrawn credit facility. During H1 of the year, we also returned almost EUR 36 million to shareholders through dividends and share buybacks. In addition, our 5% dividend policy continues to be a defining feature of the investment proposition, translating into a prospective dividend yield well above 8% at today's market share price.

Speaker #2: Today, BGP Limited provides immediate access to a diversified private equity portfolio of more than 70 companies, across industries, geographies, and vintages. This portfolio benefits from a balanced mix of mature investments approaching realizations and newer ones that are beginning to demonstrate encouraging operational momentum.

Speaker #2: From a balance sheet perspective, we remain well positioned with €51 million in cash and cash equivalents and a fully undrawn credit facility. During the first half of the year, we also returned almost €36 million to shareholders through dividends and share buybacks.

Speaker #2: And in addition, our 5% dividend policy continues to be a defining feature of the investment proposition, translating into a prospective dividend yield well above 8% at today's market share price.

Speaker #2: Looking ahead, the company enters the second half of 2026 with a diversified portfolio, solid liquidity, a meaningful pipeline of investment opportunities, and continued realization potential with immature holdings.

Andreea Mateescu: Looking ahead, the company enters the H2 of 2026 with a diversified portfolio, solid liquidity, a meaningful pipeline of investment opportunities, and continued realization potential with immature holdings. While company-specific headwinds within parts of the 2021 to 2023 vintage cohort have impacted recent performance, the early momentum demonstrated by newer investments is encouraging. Finally, while geopolitical uncertainty and market volatility are likely to persist, with improving private equity market conditions, a gradually normalizing exit environment, and the portfolio's exposure to long-term structural growth themes, which provide conditions for future value creation. With that, I thank you for your attention, and I would now like to open the floor for questions. Now, looking at the webcast, I see a number of questions more or less around the same themes. Maybe Federica, the first one for you.

Speaker #2: And while company-specific headwinds within parts of the 2021 to 2023 vintage cohort have impacted recent performance, the early momentum demonstrated by newer investments is encouraging.

Speaker #2: And finally, while geopolitical uncertainty and market volatility are likely to persist, with improving private equity market conditions, a gradually normalizing exit environment, and the portfolio's exposure to long-term structural growth themes, these provide conditions for future value creation.

Speaker #2: With that, I thank you for your attention, and I would now like to open the floor for questions. Now, looking at the webcast, I see a number of questions more or less around the same themes. Maybe, Federica, the first one is for you.

Speaker #2: What level of distributions do you expect to see from the portfolio in the next, maybe, 6 to 12 months?

Andreea Mateescu: What level of distributions do you expect to see from the portfolio in the next maybe six to 12 months?

Speaker #3: Yeah, thanks, Andrea. Obviously, it's difficult to put a number on it, but we've seen very strong momentum beginning in 2025, where over the year we realized over 20% of the NAV. The momentum has continued in the first half of the year.

Federica Cazzaniga: Yeah. Thanks, Muna. Obviously difficult to put a number, but we've seen very strong momentum, beginning in 2025, where over the year we realized over 20% of the NAV. The momentum has continued in the H1 of the year, with over 14% of NAV distributed in proceeds. I would expect the trend to continue at the margin towards the high teens when it comes to the performance and the proceeds realized in the portfolio over the next six to 12 months.

Speaker #3: With over 14% of NAV distributed in proceeds, I would expect the trend to continue at the margin, towards the high teens, when it comes to the performance and proceeds realized in the portfolio over the next 6 to 12 months.

Speaker #2: Thank you, Federica. Now, I also see a number of questions around the upcoming dual share class proposal, which was announced earlier in June.

Andreea Mateescu: Thank you, Federica. Also, I see a number of questions around the upcoming or, well, the dual share class right proposal, which was announced earlier in June. Here what I can say, and this was also mentioned with today's RNS. A circular and a prospectus, those will provide additional details on the share class proposal, and they will be sent to shareholders in early September for approval and election. What I also want to emphasize here is that the timelines will be shorter than for a regular AGM. Please, I recommend you to review the information and elect and cast your vote as early as possible once this becomes available. Also, please note that various of your questions regarding the organization, those will be answered within the circular that will be made available. Also another question for you, Federica.

Speaker #2: Now here, what I can say—and this was also mentioned with today's RNS—so a circular and a prospectus, those will provide additional details on the share class proposal.

Speaker #2: And they will be sent to shareholders in early September for approval and election. What I also want to emphasize here is that the timelines will be shorter than for a regular AGM.

Speaker #2: So, please, I recommend that you review the information and cast your vote as early as possible once this becomes available. Also, please note that any questions you have regarding the organization will be answered within the circular that will be made available.

Speaker #2: Now, also another question for you, Federica. What is the percentage of the NAV in listed stocks, and maybe do you expect this to remain stable going forward?

Andreea Mateescu: What is the percentage of the NAV in listed stocks and maybe do you expect this to remain stable going forward?

Speaker #3: Yeah, I guess this also ties back to—sorry—to the comments I just made on the expected level of realizations, given that listed holdings have been a more natural source of liquidity over the past 12 months.

Federica Cazzaniga: Yeah, I guess this also ties back to the comments I just made on the expected level of realizations, given that listed holdings have been a more natural source of liquidity over the past 12 months. I very much expect them to remain the same source of liquidity. The proportion of listed assets has gradually been declining down as we've realized these holdings trended down from the mid-teens with currently 79% of listed holdings in the portfolio overall. The sell-down might be compensated by new exits done via the IPO route. But again, we will remain very much focused on monetizing such listed shares, therefore, would expect the overall percentage of shares in the portfolio to remain in the 5% to 10%, very much in line with historical average and also contributing to the ongoing monetization.

Speaker #3: And I'd very much expect them to remain the same—to remain the same source of liquidity. The proportion of listed assets has gradually been tickling down as we've realized these holdings.

Speaker #3: Trended down from the mid teens with currently 10 and 9% of listed holdings in the portfolio overall. Now, this might be the sell down might be compensated by new exits done via the IPO route.

Speaker #3: But again, we will remain very much focused on monetizing such listed shares. Looking forward, we would expect the overall percentage of shares in the portfolio to remain in the 5 to 10% range, very much in line with the historical average.

Speaker #3: And also contributing to the ongoing monetization.

Speaker #2: Thank you, Federica. I also see another question on the trading of Emeria and also Amega. Maybe Chris, could you provide some additional information or color on this?

Andreea Mateescu: Thank you, Federica. I also see another question on the trading of Emeria and also Ammega. Maybe, Chris, could you provide some additional information or color on this?

Speaker #4: Yeah, and just to be clear, this is about the trading. There's a comment on the trading of the debt of both companies. Now, clearly, listen, both Emeria and Amega have debt with maturities in 2028.

Christopher Maas: Yeah. Just to be clear, this is about the trading. There's a comment on the trading of the debt of both companies. Clearly, listen, both Emeria and Ammega have debt with maturities in 2028. We've got a capital markets team and the investment teams working proactively on addressing those, and working with the lenders to make sure that we find a sustainable solution for those companies. Be mindful of the fact that the level of trading also of some of those debts are also due to their own terms and interest price which were set at points in the market that were quite attractive for us. So that has also played an influence. But it's definitely top of the agenda and something we're working on.

Speaker #4: We've got a capital markets team and the investment teams working proactively on addressing those, and working with the lenders to make sure that we find a sustainable solution for those companies.

Speaker #4: Be mindful of the fact that the level of trading of some of those debts is also due to their own terms and interest price.

Speaker #4: Which were set at points in the market that were quite attractive for us. So that has also played an influence. But it's definitely top of the agenda, and something we're working on.

Speaker #2: Thank you, Chris. Maybe one more for you. Are you able to comment on the EBITDA growth, right, at 4.5%?

Andreea Mateescu: Thank you, Chris. Maybe one more for you. Are you able to comment on the EBITDA growth right at 4.5%?

Speaker #4: Yeah, I mean, listen, EBITDA growth at 4.5% for some of our top positions is a low point, and definitely not something we're proud of.

Christopher Maas: Yeah, listen, EBITDA growth at 4.5% for some of our top positions is a low point. It is definitely not something we are proud of. We have had a very successful track record for many, many years of growing our portfolio companies at growth rates for the EBITDA that were above 13%, 13% to 15%. Now, the 4.5% is also due to a bit of exceptional circumstances and the companies that Federica isolated as being key contributors to that weight down.

Speaker #4: We have had a very successful track record for many, many years of growing our portfolio companies at growth rates for EBITDA that were above 13%—in the 13% to 15% range.

Speaker #4: Now, the 4.5% is also due to a bit of a kind of exceptional circumstances, and the companies that Federica isolated as being key contributors to that weighed down.

Speaker #4: And what we are reassured with is that, actually, if you look at some of the recent trends and some of the outlook for the portfolio, what we're seeing across the board with companies like Fortero, Premistar, Diversitech, even Breitling, is that the outlook is much more solid. We're expecting, progressively during the course of 2027, to come back to more of the historical levels of growth that we've been driving across the portfolio.

Christopher Maas: What we are reassured with is that, actually, if you look at some of the recent trends, some of the outlook for the portfolio, what we are seeing across the board with companies like Forterro, like PremiStar, DiversiTech, even Breitling, is that the outlook is much more solid, and we are expecting progressively during the course of 2027 to come back to more the historical levels of growth that we have been driving across the portfolio.

Speaker #2: Thank you. Also, as you touched on AI, right, and gave the example of version one, I see also here some questions on this. So in this context, right, what would be our view on the investment attractiveness of digital transformation IT consulting and software integration businesses?

Andreea Mateescu: Thank you. Also, as you touched on AI and gave the example of Version 1, I do also hear some questions on this. So in this context, what would be our view on the investment attractiveness of digital transformation, IT consulting, and software integration businesses? Do we consider, do we look at such new investments in this segment?

Speaker #2: Do we consider—do we look at such new investments in this segment?

Speaker #4: Yeah, listen, it's super topical, right? So I think it's topical. On a standalone basis, those companies like Version 1, like Cloudflight, are clearly seeing a pickup in demand from companies to help them run some AI transformation projects, right?

Christopher Maas: Yeah. Listen, it's super topical. I think it's topical. On a standalone basis, those companies like Version 1, like Cloudflight, are clearly seeing a pickup in demand from companies to help them run some AI transformation projects. That's true across the board. Those companies are also embracing AI and using those tools to be more efficient in the rendering of their services. Where it is also a great synergy for us is that we're using and partnering with those companies across our portfolio companies to really help, like I talked about Foundation Risk Partners, but help drive some of those AI transformation projects. Great partnerships and yes, for the moment, we're actively using and leveraging those companies, and could consider at the right time new investments in that segment. For the moment, I think we're happy with the exposure there.

Speaker #4: That's true across the board. And those companies are also embracing AI and using those tools to be more efficient in the rendering of their services.

Speaker #4: Where it is also a great synergy for us is that we're using and partnering with those companies across our portfolio companies to really help—like I talked about, Foundation Risk Partners—but help drive some of those AI transformation projects.

Speaker #4: So, great partnerships, and yes, for the moment, we're actively using and leveraging those companies and could consider, at the right time, new investments in that segment.

Speaker #4: But for the moment, I think we're happy with the exposure there.

Speaker #2: Perfect. Thank you very much, Chris, for this comprehensive answer. We are actually running over time. And, as mentioned at the beginning, if you feel that some of the questions were not answered, please reach out to us and we're happy to provide you with an answer.

Andreea Mateescu: Perfect. Thank you very much, Chris, for this comprehensive answer. We are actually running over time, and as mentioned at the beginning, if you feel that some of the questions were not answered, please reach out to us and we're happy to provide you an answer. Again, as I also strengthened earlier, definitely on the dual share class proposal, please wait for the circular to be published, expected in early September. Again, I want to highlight there that additional information will be made available, and also the shorter election and timing to cast your vote. Thank you all very much for joining us today, and we're looking forward to talking with you and also providing you the next update.

Speaker #2: But again, as I also stressed earlier, definitely on the dual share class proposal, please wait for the circular to be published. Expect it in early September.

Speaker #2: And again, I want to highlight there that additional information will be made available, and also the shorter election and timing to cast your vote.

Speaker #2: Thank you all very much for joining us today. We're looking forward to talking with you and also providing you with the next update.

Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.