INVESTMENT OBJECTIVE

The Sub-Fund aims to generate medium- to long-term returns in its base currency by investing primarily in real estate and, to a lesser extent, in private equity.

Investments are made directly or through vehicles such as SPVs and holding companies, with attention to capital preservation, diversification, and liquidity.

Focus areas include real estate funds, development projects, and companies linked to the real estate sector, including construction and property services.

KEY FACTS

> Sub- Fund name: Falcon Fund

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

> Product type: RAIF

> Asset class: Direct Real Estate, Direct Private Equity

> Region of investment: Global

> Primary Benchmark: N/A

> Fund Base currency: EUR

> Share class currency: EUR

> 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 Global Market Outlook: Real Estate & Private Equity

Real Estate Market Recovery Gains Traction

The global real estate sector continued its gradual rebound, with commercial real estate investment volumes increasing approximately 12% year-on-year. Residential and retail assets led the way, benefiting from pent-up demand and improving consumer confidence. Logistics assets saw mixed performance due to supply constraints, while the office sector remains under pressure, albeit with pockets of rental growth in prime locations.

Institutional investors and real estate funds remain selective, with due diligence and underwriting standards tighter than in previous cycles. The return of capital markets activity—particularly in Europe and North America—suggests that liquidity is returning to key markets, albeit at a measured pace.

Private Equity Momentum Strengthens

Global private equity activity strengthened notably in Q3 2025, with deal values reaching multi-year highs as investors took advantage of improving valuations and narrowing bid-ask spreads. The quarter saw a shift toward fewer but larger and more strategically structured transactions, emphasizing operational value creation over financial engineering. Exits also accelerated, reflecting growing buyer confidence and renewed liquidity in secondary markets. While fundraising remains below historic peaks, dry powder levels remain significant, sustaining competitive deal dynamics. Key investment themes include technology enablement, healthcare innovation, infrastructure, and sustainability, all of which continue to attract robust institutional interest. Overall, the private equity landscape remains dynamic and opportunity-driven—positioned for steady growth as macro stability improves and capital deployment becomes increasingly targeted and disciplined.

Outlook for Remainder of 2025

Looking ahead, both sectors are expected to navigate continued macroeconomic uncertainty. Real estate investors are watching closely for interest rate inflection points, which will be key to unlocking further investment flows. In private equity, abundant dry powder—estimated at over $1.6 trillion globally—positions fund managers to capitalize on opportunities in distressed sectors, secondary markets, and digital infrastructure.

While risks remain—from inflationary pressures to geopolitical instability—managers with disciplined strategies, sector expertise, and strong deal origination pipelines are likely to outperform in the months ahead.

Falcon Fund

During the third quarter of 2025, Falcon Fund maintained a highly selective investment stance, reflecting our cautious optimism in light of ongoing macroeconomic and geopolitical uncertainties. The Fund preserved a conservative allocation strategy by keeping the majority of its assets in cash, ensuring ample liquidity and flexibility to capitalize on compelling opportunities as they arise across both the Private Equity and Real Estate landscapes.

As part of our broader strategic alignment with innovation-led growth, the Fund made a modest indirect investment in Emery—a fast-growing EdTech language platform—via our exposure through Crane Fund. The investment reflects our belief in the long-term value creation potential of technology-driven education solutions, particularly those with scalable, global business models.

Looking ahead, Falcon Fund remains focused on identifying high-conviction, medium- to long-term investments that offer strong fundamentals, capital appreciation potential, and resilience across market cycles. Our disciplined capital deployment approach and ample liquidity position us well to act decisively when the right opportunities emerge, while continuing to prioritise capital preservation and long-term value creation for our investors.

FUND INFORMATION (as at as at 31/09/2025)