Sciens Coloured Diamond Fund III

PRIVATE Equity INVESTMENT IN COLOURED DIAMONDS

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The Sciens Coloured Diamond Fund III BV will enable investors to invest directly into select coloured diamonds and trade, improve or appreciate these stones to extract maximum value. The Fund seeks to take advantage of arbitrage opportunities that are available due to the extreme opacity and inefficiency in the pricing of coloured diamonds. The target return is 15% net pa. Gross IRR from exited investments is 25.6%. The fund looks at a 3 year investment horizon. Fund I returned 38% (2011 - 2015), fund II returned just off 40% and we are currently raising for the 3rd vintage. 


Fund Overview

Track Record

FUND CLASS Private Equity
STRATEGY Coloured Diamond Investmentment
GEOGRAPHICAL FOCUS Global
FUND STRUCTURE Platform
FUND DOMICILE Curacao
FUND Sciens Diamond Management B.V.
FUND TERM 6 years with possible 1 year extension
COMMITMENT PERIOD 3 years from Final Close
RETURN OF CAPITAL The Fund will begin to return capital after the expiration of the Commitment Period
FEES Management Fee: 2% Performance Fee: 20% (8% Hurdle)
INSURANCE, CUSTODY, HANDLING AND ADMIN EXPENSES Estimated at 0.50% of NAV annually (paid to 3rd parties only)
MINIMUM SUBSCRIPTION Individuals - US$ 500,000 Institutions - US$ 2,000,000
ADMINISTRATOR Atlas Fund Services (Curacao) N.V.
AUDITOR Deloitte & Touche LLP
CUSTODIAN Regency Shipping Ltd.
COUNSEL US – Seward & Kissel LLP; Curacao N.V. – STvB Advocaten
Fund I
AUM $8.2m
Gross IRR 13%
Net IRR 9%
Fund II
AUM $42.5m
Gross IRR 16%
Net IRR 11%

Presentation

White PAPer


investment Strategy

The Fund seeks to take advantage of arbitrage opportunities that are available due to the extreme opacity and inefficiency in the pricing of coloured diamonds by employing three primary strategies:

• Short-Term Trading: Trading diamonds to meet market requests, and purchasing diamonds specifically for short-term arbitrage opportunities between sellers and buyers, which may include brokerage commissions for the Fund

• Improvement: (a) Optimising market value by creating pairs and sets and (b) re- polishing stones to improve their clarity and colour without sacrificing weight

• Holding: Investing in one-of-a-kind rare coloured diamonds for long term appreciation. Diamonds may be displayed at major exhibitions and consigned to museums to increase awareness of the asset. The Fund anticipates that the diamonds will eventually be sold to buyers prepared to pay a substantial premium for a unique asset


ENQUIRES

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