Oplysning om usædvanlige forhold:The valuations are prepared by the relevant team and are reviewed on a quarterly basis as well as per year end by the team who report and make recommendations to the general partner. The recommendations are reported on a quarterly basis, in line with the quarterly valuations that are provided to investors. The team considers the appropriateness of the valuation model itself, the significant and key inputs as well as the valuation results using various valuation methods and techniques generally recognized as standard within the industry. The fair value estimates are measured according to the guidelines of the “International Private Equity and Venture Capital” (IPEV) “Valuation Guidelines” which is why investments are recognized at fair value at the balance sheet date.
In determining the valuation the IDCV team uses if possible the latest transaction. To support this valuation a rigorous approach relies on comparable trading multiples. To arrive at a reliable valuation, the investment team carefully selects public or private companies that are similar to the target company in terms of industry, size, development stage, revenue generation, and strategy. Once a peer group has been established, the team calculates the mean multiple of these comparable companies, which is then multiplied by the relevant multiple for each individual company. This multiple is calculated by dividing the enterprise value (EV) of each comparable company by its sales. By using this method, the IDCV team can arrive at a valuation grounded in industry benchmarks and supported by a thorough analysis of peer group multiples recommended to the General Partner for Partnership’s investments.
In determining the continued appropriateness of the chosen valuation techniques, the General Partner may perform back testing to consider the various models’ actual results and how they have historically aligned with the market transactions.
Following our valuation approach, the valuation of Tradeshift has been affirmed using the EV/Sales metric, which corroborates the valuation derived from the capital injection. Currently, Tradeshift is undergoing a restructuring phase, involving the issuance of convertible notes set to mandatorily convert 24 months subsequent to the closure of the second tranche. The pre-money valuation was established at $447 million, which has been utilized in all pertinent transaction computations, leading to an anticipated post-money valuation of $760 million upon completion of the transaction. It is noteworthy that Tradeshift has not engaged in priced equity fundraising since 2018. The bulk of our prior investment in Tradeshift was through convertible notes, which will be converted at the newly established valuation. Additionally, our leadership and participation in the transaction have yielded considerable additional profits, prompting considerations for revaluation of our position above 1x. However, we have elected to maintain a revaluation at 1x pending the finalization of the transaction and the closure of the second tranche.
Statement by Management on the annual report
Identifikation af den godkendte årsrapport:The management has today discussed and approved the annual report of IDCV TS II K/S for the financial year 1 January - 31 December 2023.
Management's review
Beskrivelse af virksomhedens væsentligste aktiviteter:Business review
The object of the limited partnership is to generate income and capital appreciation by making investments in unlisted shares.