INVESTMENT OBJECTIVE

The Sub-Fund seeks long-term capital growth by primarily investing in Private Equity projects across various sectors and stages. It may also invest in real estate, construction projects, and other funds to enhance diversification, with a focus on Europe.

Allocation is flexible, allowing investment in global markets, including developing economies, and temporary cash holdings.

KEY FACTS

> Sub- Fund name: Crane Fund

> Umbrella Fund Name: C3ALLURO RAIF V.C.I.C. LTD

> Product type: RAIF

> Asset class: Direct Private Equity, Direct Real Estate

> Region of investment: Europe

> Primary Benchmark: N/A

> Fund Base currency: EUR

> Share class currency: EUR

> Share class type: Accumulation

> Domicile: Cyprus

> Fund Managers:

• • Kypros Neocleous (Managing Fund since September 2020)
  • Roman Bielic (Managing Fund since September 2020)

FUND RISKS

The Fund invests in direct real estate and private equity assets and is intended solely for professional investors. Prospective investors should be aware of the following key risks:

• Capital at Risk: This product offers no protection from future market performance. Investors may lose some or all their investment.
• Illiquidity: Real estate and private equity assets are inherently illiquid. Disposals may take time or occur at a discount, potentially affecting the Fund’s ability to meet redemption requests in a timely manner.
• Redemption and Exit Risk: Early redemptions may be restricted, subject to notice periods or exit charges. Exit values may differ significantly from expectations, particularly in periods of market stress.
• Valuation Risk: Asset valuations, especially for private equity and real estate, rely on models and independent appraisals, which may not reflect actual realisable prices.
• Market and Economic Risk: Asset values can fluctuate due to macroeconomic factors, interest rates, inflation, political instability, or sector-specific trends.
• Financing and Leverage Risk: Use of borrowing can magnify both gains and losses. Rising interest rates or an inability to refinance may negatively impact returns. Leverage creates economic exposure beyond the amount invested.
• Real Estate Risk: Property investments face risks such as tenant defaults, location-specific volatility, regulatory changes, operational issues, and uninsured damage. Development projects may encounter delays, cost overruns, or planning obstacles.
• Private Equity Risk: Unlisted company investments may involve limited transparency, governance risks, dependency on key individuals, and uncertain exit routes.
• Emerging Markets Risk: Where applicable, investments in emerging markets may involve heightened volatility, currency risks, political instability, and lower regulatory standards.
• Concentration Risk: The Fund may hold a concentrated portfolio of assets in certain countries, sectors, or strategies. This may increase volatility and potential losses compared to a more diversified fund.
• Governance Risk: Management of underlying assets may, in certain cases, be delegated to third-party entities. This may limit the Fund’s control and introduce additional operational or oversight risk.
• Legal, Regulatory, and Tax Risk: Changes in law, regulation, or tax treatment in Cyprus or other jurisdictions may adversely affect the Fund and its investors.

For a full description of all risks, please refer to the Offering Memorandum and the Key Information Document (KID).

FUND COMMENTARY

Q3 2025 European Private Equity Market Overview

In Q3 2025, the European private equity market showed renewed strength amid stabilizing valuations, resilient credit markets, and easing inflation pressures. Deal activity improved in value terms, with around US$178 billion invested across 1,700 deals, though overall volume remained below pre-2022 levels. Fundraising continued to lag—down roughly 25% year-on-year—as investors stayed selective, prioritizing quality assets and proven managers. Direct lending held steady at about €7.4 billion for the quarter, supported by stable spreads and expectations of European Central Bank rate cuts. Valuation gaps between buyers and sellers narrowed, boosting deal closures, while exit activity rose about 40% in value versus 2024, signalling a gradual reopening of liquidity channels. Sector interest remained strongest in healthcare, infrastructure, energy transition, and financial services, while traditional real estate and consumer assets faced ongoing headwinds. Geographically, the Nordics and Iberia showed above-average momentum, supported by robust mid-market and cross-border activity. Despite geopolitical uncertainty and cautious investor sentiment, Europe’s abundant dry powder and moderating cost of capital suggest a more constructive environment heading into 2026, with dealmakers focusing on operational value creation, disciplined leverage, and strategic sector positioning.

Crane Fund

The third quarter of 2025 is set to be an active period for Crane Fund, which remains firmly committed to its core strategy of direct private equity investing. A significant allocation has been directed toward Emery, an innovative edtech platform offering immersive English-language learning through video and live interaction—backed by €1.5 million in funding and established in Cyprus in 2022.  

Emery’s distinctive psycholinguistic methodology and engaging content mix have attracted positive user feedback, positioning it well for growth.

During Q3, the Fund is conducting strategic partnership discussions aimed at accelerating Emery’s expansion via acquisition or joint ventures with major technology players. These talks—if successful—would enhance Emery’s platform capabilities, scale reach, and strengthen the Fund’s return potential. Overall, as global exit markets remain cautious, Crane Fund’s proactive investment in high-conviction assets like Emery underscores its commitment to value creation through active stewardship and opportunistic positioning.

FUND INFORMATION (as at 31/09/2025)