The fund was incorporated January 1 to capitalize on the valuation gap between an exploration idea/concept in the private, non-listed stage, and a drill-ready project in the public stage.
See the strategy page for further information on the fund’s goals and how we aim to achieve those goals
The fund is a tax-transparent mutual fund under Dutch law (“fonds voor gemene rekening”)*. Assets of the fund are under custody of a special purpose vehicle (a “stichting”), managed by our administrator Circle Partners (“Circle”). Circle is a worldwide operating independent fund administrator. Circle also oversees compliance of the investments with the policy stipulated in the information memorandum. Circle calculates the fund’s Net Asset Value on a quarterly basis and computes the annual accounts independent of the fund’s manager.
The fund’s minimum investment is € 100,000. There are no entry or exit fees. Initial lock-up is 2 years taking this lock-up period into account, participants can submit a redemption request on a quarterly basis, with a notice period of one year.
The reason for this lock-up period and notice period matches the recommended minimum holding period of five years: there is no market for private exploration companies and there is a long lead time from incubation to a realized exit. Once listed it can still take a considerable time to (partially) liquidate the investment. A minimum holding period of five years increases the likelihood of one or multiple realized exits.
Management fee is 1% annually. Performance fee is 20% on realized profits. If an investor redeems during a calendar year, the accumulated performance fees will be charged directly (including unrealized profit and loss). The fund will return 50% of the realized profits to the investors after deducting the performance fees.