DUTCH VENTURE INITIATIVE S.A. SICAR
Société d’investissement en capital à risque
R.C.S. Luxembourg B 179 637

Registered office: 5 Allée Scheffer, L-2520 Luxembourg

Audited financial statements for the year ended March 31, 2017

DUTCH VENTURE INITIATIVE S.A. SICAR
Table of contents

Management and Administration ............................................................................... 3
Board of Directors’ report.......................................................................................... 4
Report of the reviseur d’entreprises agrée .................................................................. 5
Statement of financial position .................................................................................. 7
Statement of comprehensive income .......................................................................... 8
Statement of changes in net assets attributable to shareholders .................................. 9
Statement of cash flows ........................................................................................... 10
Notes to the financial statements.............................................................................. 11

2

DUTCH VENTURE INITIATIVE S.A. SICAR
Management and Administration
Registered Office
5, Allée Scheffer
L-2520 Luxembourg

Board of Directors
John A. Holloway
Elze Tjeerd Meijer
Frederik Van Beuningen

Adviser
European Investment Fund
37B, Avenue J.F. Kennedy
L-2968 Luxembourg

Depositary
CACEIS Bank, Luxembourg Branch
5, Allée Scheffer
L-2520 Luxembourg

Administrative, Registrar, Transfert Agent
CACEIS Bank Luxembourg
5, Allée Scheffer
L-2520 Luxembourg

Legal Advisor
Allen & Overy Luxembourg
33, Avenue J.F Kennedy
L-1855 Luxembourg

Auditor
KPMG Luxembourg, Société coopérative
39, Avenue John F. Kennedy
L-1855 Luxembourg

3

DUTCH VENTURE INITIATIVE S.A. SI CAR

Board of Directors' report
For the year ended March 3 1, 2017
1 he D1nch \ 'cmun: lnitiatl\c S.A. ICAR ("D\11 " or "the Company") ''a' incorporated on i\ugu~t 7. 2013 as a
ii ~ k capiwl inn:stment company (Socict.: d ' ln\l''tb~emcnt en Capital £1 Risquc) established as a public limited
liabi lit y comp:iny (Socictc 1\ nonyme) subject to the Luxembou rg 15 June :W()..I Act on SIC'i\ R. ' I he Company
"''" appro,l·d by the Luxe111bourgish financial sector ;.uper"i~ion authority. th..: Commission d..: Sur\'e ill:inc..: du
Scct..:ur I in:111cier ("CSSI-") and entered on the olfo:i:il list of SICA lb with effect a~ of AUJ:!ll'1 7. 2011.
fhe fund', lirst closing took plac..: on Augu't 12. :!OU at an :imount or L: UR 150m with l'f'~I 00'1 :rnd EIF
committing L: UR IOOm ..:ach. but EIF's commitment being capped at one third of the total timd 'ii.: (i.e. EUR
50m at the fiN clo~ing si1..:). On December I 0. 201-l thc 13rabantsc Ontwil..kl•lings l\laatschappiJ 13. V.. via one of
their imcstmcnt \'Chick> lnnovaticfonds Brabant 13.V.. announced its ent ry int o the capital or DVI \\'i th 1:.UR Sm
bringi ng th..: total commitm..:n t;. into DVI to EU R 157.5111 as this commi tme nt released an addi tion:il EU I~ 2.5m
in commitments from El l . On July 16. 2015 th.: total commi tment$ to DVJ increased once aga in. PPM Oo~t
committo.:d an additional L:UR 30rn. which auto111atically rekased additional commitment~ of l:.UR 15111 frorn the
~ide of the Ell-. Thi:. allO\\.:d DVI to sub;.cribe l· UR -15111 into the Dutch busine~s angel initiati\e European
Angeb Fund S.C.A. S lC/\R EAF :-.l·th.:rlanch ("1:.AF ' etherland5'' or "l~AF NL''). As a re ult of this EUR
-l5rn cnpital increase. the h111d held a fin:il clo;.ing of L:UI~ 202.Sm.
In the ye;ir ended March 31. 2017 the lnn:stmcnt Co111 mittce did not approve any 111.:w transac tions. as DV I was
already ful ly committed at thl' end of 2015 when it apprcl\'ed SET Fund 11 for an amou nt of EU R 6m. It ca n be
rnn ~iden:d a great succe;,s that DVJ fnanaged to compkte its investmcnt programme rough ly 30 months aller
inception. which has been on.: of the main reason' for th.: launch or a succe~sor fund-of-fund> initiati\\.'. With the
>ign:iturc of Keen Venture l'artner~ for EUR I I .Sm. D\11 managed to ~ucc:e~:.fully close its final tran>action on
October I 0. :w 16. 1 he total amount of signed transactions has reached FUR 193111. represen ting 95.3°" of the
()\I I fund si1.e. A> of th.: r..:pm1i ng date:. DVI had made commitments to 1-l different fun ds: Primc Ventures IV.
Gild..: 11.:althcare 111. Ncwion In vestments 11. Kan nijn Kapitaal l. Aglaia Oncology Fund 11. Life Sci.:ncc Partners
V. Forbion Capital Fund Ill. Gildc llcalt hca n: Se1viccs II. hcnQ Ill, Endcit Fu nd II. EAF NL. lll'E Fu nd II. SET
Fund II and the Keen Vent ure l'artne~ Fund. Thc>e 1-l funds have so for invested in 88 different companies. of
\\hich 42 arc based in 1 he Nc thcrlanc.b.
It i:. again intcr.:sting to note that new sutccs:.e~ in DVI'> underlying company portfolio li:1,·e been announced.
On Au gtht 29. 2016. J·orbion Capital Fund Ill re.tli7c<l its first and its fastest exit C\W \\ith th.: ;.al..: of ib
port folio company Aka ma rhcrapcu tics Inc. to lrbh-based A llcrgan in a 1 r;111~ac1ion worlh up to USD l.065 m.
Tota l payments to Forbion Capital Fund I11 ca n increase to USO 199.2 111. based on the reali 1at ion of fu ture
111 ile~1on cs . On 6 February 20 17. K;1r111ij11 rea lised its second exi t wi th the sale of its stake in Tuvalu M.:d ia to a
company which i~ part of the French televi>ion ch:rnncl TF I. At the moment of exit. Karmijn reali:.cd a 2.6x
money multiple and an IRR of 35°6 on this inw~tmcnt.
The Company can look b:icl.. on a dynamic ill\estment acti\ity since ib inception less than -I year~ ago. DVI has
had important incremcnt:tl and catalytic effect, :i~ it al l1mcd EIF. \'ia DV I and other mandates it is a1h ising or
ma nagi ng. to invest larger amoun ts and abo to ca 1 :1ly~e addi tional capit<1 I from other in vestor~ towards fund~
;u:tive 011 th.: Dutch market. rl1is ca n be de111011strated by the fac t that the total size of lhe combined 1-l
underlyi ng DV I fund, has reached an amount of around 12UR 1.5 billio n. J\s the invcstmclll ac tivity acro$S these
fund~ reachc:. its operational capacity. DVI ha> bce11 able to demonstrate successfully its role to strengthen the
capital b:i:.e of Dutch inno\ati\e S\IEs.
J ohn A. llolloway
C h:1irman of lhr Board

4

Tel. : +352 22 51 51 1
Fax: +352 22 51 71
E-mail: info@kpmg.lu
Internet: www.kpmg.lu

KPMG Luxembourg, Societe cooperative
39, Avenue John F. Kennedy
L - 1855 Luxembourg

To the Shareholders of the
Dutch Venture Initiative S.A. SICAR
5, allee Scheffer
L-2520 Luxembourg

REPORT OF THE REVISEUR D'ENTREPRISES AGREE

We have audited the accompanying financial statements of Dutch Venture Initiative S.A.
SICAR which comprise the statement of financial position as at March 31 , 2017 and the
statement of comprehensive income, statement of changes in net assets and cash flows
statement for the year then ended, and a summary of significant accounting policies and
other explanatory information.

Board of Directors' responsibility for the financial statements
The Board of Directors is responsible for the preparation and fair presentation of these
financial statements in accordance with International Financial Reporting Standards as
adopted by the European Union, and for such internal control as the Board of Directors
determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.

Responsibility of the Reviseur d'Entreprises agree
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing as adopted
for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the judgement
of the Reviseur d'Entreprises agree, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the Reviseur d'Entreprises agree considers internal control relevant to the
entity's preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity's internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Board of Directors, as well as
evaluating the overall presentation of the financial statements.

KPMG lu,embOu•g. ~:O cooor'1a1 ...e. a lu,om1>0u1g enLtvand a
member 1.1m o' tne KP\1G net\'°'' of ndc;iendcnl member l 1ms
all .a1ed with KPMG fn:emalon.l' Coooo1a1.vo t"KPMG ln1e1n.l1.on.>l"t.

a S\·rss em1ty

TVA LU 27351518
ACS Lu, oml>OU<O B 149133

We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion

In our opinion , the financial statements give a true and fair view of the financial position of
Dutch Venture Initiative S.A. SICAR as of 31 March 2017 and of its financial performance
and its cash flows for the year then ended in accordance with International Financial
Reporting Standards as adopted by the European Union.
Other information

The Board of Directors is responsible for the other information. The other information
comprises the information included in the Board of Directors' report but does not include the
financial statements and our report of Reviseur d'Entreprises agree thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon .
In connection with our audit of the financial statements, our responsibility is to read the other
information and , in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the work we have performed , we
conclude that there is a material misstatement of this other information , we are required to
report this fact. We have nothing to report in this regard.

Luxembourg , July 27, 2017

KPMG Luxembourg ,
Societe Cooperative
Cabinet de revision agree

M. Tabart

DUTCH VENTURE INITIATIVE S.A. SICAR
Statement of financial position
As at March 31, 2017

Notes

As at March 31,
2017
EUR

As at March 31,
2016
EUR

Assets
Financial assets at fair value through profit or loss

5

52 232 325
52 232 325

33 097 380
33 097 380

Cash and cash equivalents

8

3 375 801
3 375 801

5 362 111
5 362 111

Deferred charges

9

12 221

12 221

55 620 347

38 471 712

Total assets

Liabilities
Current liabilities
Other payables and accrued expenses

6

69 884

2 636 385

Tax debts

7

7 272

4 061

77 156

2 640 446

55 543 191

35 831 266

Total liabilities (excluding net assets
attributable to holders of redeemable shares)
Net assets attributable to holders of redeemable
shares
Represented by:
Number of Ordinary shares outstanding

10

21 941 936

13 975 851

Number of Class A shares outstanding

10

1

1

Number of Class B shares outstanding

10

39 344 163

25 060 148

The accompanying notes form an integral part of these financial statements.

7

DUTCH VENTURE INITIATIVE S.A. SICAR
Statement of comprehensive income
For the year ended March 31, 2017

Notes

Year ended
March 31, 2017
EUR

Year ended
March 31, 2016
EUR

Interest income

11

9 774

12 180

Other financial income

12

-

21 776

9 774

33 956

Income

Total income

Expenses

Administration and custody fees
Professional fees
Other operating fees
Other financial charges
Interest charges

13
13
14
16
15

(100 905)
(1 208 262)
(34 351)
(12 778)

(93 379)
(1 360 803)
(37 531)
(29 812)
(181 370)

Taxes
Income tax

17

(3 210)

(783)

5

(1 188 443)

(1 216 112)

Total operating expenses

(2 547 949)

(2 919 790)

Total comprehensive loss for the year

(2 538 175)

(2 885 834)

Fair value adjustment on financial assets
at fair value through profit or loss

The accompanying notes form an integral part of these financial statements.

8

DUTCH VENTURE INITIATIVE S.A. SICAR
Statement of changes in net assets attributable to holders of
redeemable shares
For the year ended March 31, 2017
Year ended
March 31, 2017

Year ended
March 31, 2016

EUR

EUR

Net assets attributable to holders of redeemable shares at
the beginning of the year

35 831 266

15 915 828

Proceeds from redeemable shares issued
Distributions to holders of redeemable shares (finance cost)
Net increase from share transactions

22 250 100
58 081 366

24 000 000
(1 198 728)
38 717 100

Total comprehensive profit/(loss), excluding finance cost
Increase/(decrease) in net assets attributable to holders of
redeemable shares from operations

(2 538 175)

(2 885 834)

(2 538 175)

(2 885 834)

Net assets attributable to holders of redeemable shares at
the end of the year

55 543 191

35 831 266

Number of redeemable shares outstanding at the beginning
of the year

39 036 000

15 036 000

Number of redeemable shares issued during the year

22 250 100

24 000 000

Number of redeemable shares outstanding at the end of the
year

61 286 100

39 036 000

The accompanying notes form an integral part of these financial statements.

9

DUTCH VENTURE INITIATIVE S.A. SICAR
Statement of cash flows
For the year ended March 31, 2017
Year ended
March 31, 2017
EUR

Year ended
March 31, 2016
EUR

(2 538 175)

(2 885 834)

1 188 443
(1 349 732)

1 216 112
(1 669 722)

9

-

-

6,7

(2 566 503)

2 472 453

3 211
(3 913 024)

(5 027)
797 705

5

(20 323 386)
(20 323 386)

(19 754 279)
(19 754 279)

10

22 250 100
22 250 100

24 000 000
(1 198 728)
22 801 272

(1 986 310)
5 362 111
3 375 801

3 844 699
1 517 412
5 362 111

Notes
Cash flows from operating activities
Operating (loss)/profit
Adjustment for:
Net changes in fair value of financial
assets at fair value through profit and loss
Operating loss before working capital changes
Increase/Decrease in Deferred charges
Increase/Decrease in Other payables and accrued
expenses
Increase in Tax debts
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Financial assets acquisition
Net cash used in investing activities
Cash flows from financing activities
Capital contributions from shareholders
Distributions paid to shareholders
Net cash from financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

5

The accompanying notes form an integral part of these financial statements.

10

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements
For the year ended March 31, 2017
1. General information
Dutch Venture Initiative S.A. SICAR (the “Company”) was incorporated on August 7, 2013 as a Luxembourg
investment company in risk capital (Société d'Investissement en Capital à Risque) with variable capital governed
by the 2004 Act, the Companies Act and the Articles of Incorporation and has adopted the form of a public
limited liability company (Société Anonyme). The registered office of the Company is established in 5, Allée
Scheffer, L-2520 Luxembourg, registered with the Luxembourg trade and companies register under the number
B.179.637.
The Company's investment objective is to invest in assets representing risk capital over a long investment
horizon (on average 10 to 15 years). The Company intends to achieve its objectives through the construction of a
balanced portfolio of Portfolio Funds that invest their assets in private equity or venture capital. All participation
in, or commitments to portfolio funds will have to qualify as risk capital within the meaning of article 1 of the
2004 Act and CSSF Circular 06/241.
Portfolio Company will target as part of their investment objectives to invest in innovative SMEs with aboveaverage future growth prospects and a strong competitive position in their sector.
The Company has been set up for a limited duration and will be automatically put into liquidation on August 7,
2030, or if earlier, the date on which all investments have been disposed or with supermajority resolution. At any
time, the Board may, upon proposal of the adviser, elect to extend the term for up to two consecutive additional
one-year periods.
The fiscal year will begin on April 1 of each year and ends on March 31 of the next year.
As at March 31, 2017, the Company is held by European Investment Fund (“EIF”) and by
Participatiemaatschappij Oost Nederland NV (“PPM Oost”) and by Innovatiefonds Brabant B.V.. Ordinary
shares are held by EIF and Innovatiefonds Brabant B.V., Class A shares are held by EIF and Class B shares are
held by PPM Oost.

11

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These
policies have been consistently applied to the year presented, unless otherwise stated.
2.1 Basis of preparation
The financial statements of Dutch Venture Initiative S.A. SICAR have been prepared in accordance with
International Financial Reporting Standards as adopted by the European Union (IFRS). The financial statements
have been prepared under the historical cost convention, as modified by the revaluation of financial assets and
financial liabilities (including derivative financial instruments) at fair value through profit or loss.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires the Board of Directors to exercise its judgement in the process of applying the
Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are disclosed in Note 2.5.
The Company’s financial statements have been authorized for issue by the Board of Directors on July 14, 2017.
(a)

Standards issued and effective

The accounting policies adopted are consistent with those of the previous financial year.
(b)

Standards issued but not effective

The following IFRS and IFRIC interpretations applicable to the Company were issued but are not yet effective.
The Company has chosen not to early adopt these standards and interpretations. The Company plans to adopt
them at the date of endorsement by the European Union.
• IAS 1, ‘Disclosure initiative’, Amendments to IAS 1
The amendments clarify the materiality requirements in IAS 1, that specific line items in
the statement(s) of profit or loss and OCI and the statement of financial position may be
disaggregated, that entities have flexibility as to the order in which they present the notes to
financial statements and that the share of OCI of associates and joint ventures accounted for
using the equity method must be presented in aggregate as a single line item, and classified
between those items that will or will not be subsequently reclassified to profit or loss.
Furthermore, the amendments clarify the requirements that apply when additional subtotals
are presented in the statement of financial position and the statement(s) of profit or loss and
OCI. These amendments are effective for annual periods beginning on or after 1 January
2016. The Company is in the process of analysing the impact of this standard on its
operations.

12

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
2. Summary of significant accounting policies (continued)
2.1 Basis of preparation (continued)
(b)

Standards issued but not effective (continued)
• IFRS 9, ‘Financial instruments’
This standard is the first step in a three-part project by the IASB to replace IAS 39 financial
instruments. This first part, dealing with the classification and measurement of financial
assets, simplifies the recognition of financial assets by requiring such assets to be measured
at either amortised cost or fair value, depending on certain criteria. The standard is effective
for annual reporting periods beginning on or after 1 January 2018, with early adoption
permitted. The date of the adoption of this standard by the Company will also be dependent
on the timing of the EU endorsement process. The Company is in the process of analysing
the impact of this standard on its operations.
• IFRS 15 – ‘Revenue from contracts with customers’
IFRS 15 establishes a comprehensive framework for determining whether, how much and
when revenue is recognised. This standard will replace existing revenue recognition
guidance including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13
Customer Loyalty Programmes. IFRS 15 will be effective for annual reporting periods
beginning on or after 1 January 2017, with early adoption permitted. The date of the
adoption of this standard by the Company will also be dependent on the timing of the EU
endorsement process. The Company is in the process of analysing the impact of this
standard on its operations.

2.2 Investment entities’ consolidation exemption
The Investment entities’ consolidation exemption (Amendments to IFRS 10, IFRS 12 and IAS 27) is applicable
for the periods commencing on January 1, 2014. The Company qualifies as an investment entity since it meets
the below criteria under IFRS 10:
-

Obtain funds from one or more investors for the purpose of providing those investors with investment
management services;
Commits to its investors that its business purpose is to invest funds solely for returns from capital
appreciation, investment income or both; and
Measures and evaluates the performance substantially all of its investment on a fair value basis.

Since the Company meets the definition of an investment entity, it is not required to consolidate the investment.
As a result, the Company has accounted its investments at fair value through profit or loss (FVTPL).
2.3 Foreign currency translation
(a)
Functional and presentation currency
The Company’s investors are mainly from the Eurozone, with the subscriptions and redemptions of the shares
denominated in Euro. The performance of the Company is measured and reported to the investors in Euro.
The Board of Directors considers the Euro as the currency that most faithfully represents the economic effects of
the underlying transactions, events and conditions. The financial statements are presented in Euro, which is the
Company’s functional and presentation currency.

13

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
2. Summary of significant accounting policies (continued)
2.3 Foreign currency translation (continued)
(b)

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign currency assets and liabilities are translated into the functional currency
using the exchange rate prevailing at the statement of financial position date. Foreign exchange gains and losses
arising from translation are included in the statement of comprehensive income.
Foreign exchange gains and losses relating to cash and cash equivalents, if any, are presented in the statement of
comprehensive income within ‘net foreign currency gains or losses on cash and cash equivalents’.
Foreign exchange gains and losses relating to the financial assets and liabilities carried at fair value through
profit or loss are presented in the statement of comprehensive income within ‘other net changes in fair value on
financial assets and financial liabilities at fair value through profit or loss’.
2.4 Financial assets and financial liabilities
(a)

Classification

The Company classifies its investments in debt and equity securities, and derivatives, as financial assets or
financial liabilities at fair value through profit or loss.
This category has two sub-categories: financial assets or financial liabilities held for trading; and those
designated at fair value through profit or loss at inception.
(i)

Financial assets and liabilities held for trading

A financial asset or financial liability is classified as held for trading if it is acquired or incurred
principally for the purpose of selling or repurchasing in the near term or if on initial recognition is part
of a portfolio of identifiable financial investments that are managed together and for which there is
evidence of a recent actual pattern of short-term profit taking. Derivatives are also categorized as held
for trading. The Company does not classify any derivatives as hedges in a hedging relationship.
(ii)

Financial assets and liabilities designated at fair value through profit or loss at
inception

Financial assets and financial liabilities designated at fair value through profit or loss at inception are
financial instruments that are not classified as held for trading but are managed, and their performance
is evaluated on a fair value basis in accordance with the Company’s documented investment strategy.
The Company’s policy requires the Adviser and the Board of Directors to evaluate the information
about these financial assets and liabilities on a fair value basis together with other related financial
information.

14

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
2. Summary of significant accounting policies (continued)
2.4 Financial assets and financial liabilities (continued)
(b)

Recognition, derecognition and measurement

Purchases and sales of investments are recognised on the trade date – the date on which the Company commits to
purchase or sell the investment. Financial assets and financial liabilities at fair value through profit or loss are
initially recognised at fair value. Transaction costs are expensed as incurred in the statement of comprehensive
income. Financial assets are derecognised when the rights to receive cash flows from the investments have
expired or the Company has transferred substantially all risks and rewards of ownership.
Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss
are measured at fair value. Gains and losses arising from changes in the fair value of the ‘financial assets or
financial liabilities at fair value through profit or loss’ category are presented in the statement of comprehensive
income within other net changes in fair value of financial assets and liabilities at fair value through profit or loss
in the year in which they arise.
Dividend income from financial assets at fair value through profit or loss is recognised in the statement of
comprehensive income within dividend income when the Company’s right to receive payments is established.
Capital repayment from financial assets at fair value through profit or loss is recognized in the statement of
financial position as a decrease of the financial assets and until the initial cost is fully reimbursed.
2.5 Fair value consideration
Under the valuation technique, the fair value of private equity (PE) funds is achieved by applying the aggregated
Net Asset Value (NAV) method based on the information obtained from the respective administrators and fund
managers, as adjusted where deemed necessary by the Board of Directors, apart from recently launched funds
where the acquisition cost is applied.
This valuation method implicitly assumes that if the NAVs of underlying funds can be considered as equivalent
to the fair value as determined under IFRS 13, then the aggregation of the NAVs of all funds will itself be
equivalent to the fair value as determined under IFRS 13.
In accordance with this method, the PE funds are internally classified into three categories:
Category A – funds that have adopted the fair value requirements of IFRS 13.
Category B – funds that have adopted valuation guidelines (such as the former 2001 EVCA) or
standards that can be considered as a practical expedient for fair value measurements under IFRS 13.
Category C – funds that depart from fair value requirements of IFRS 13.
Although it is assumed for category A and B that the NAV is a reliable estimation of the fair value and specific
review is performed, it must be stated that underlying investments have been estimated in the absence of readily
ascertainable market values. Because of the inherent uncertainty of valuation and current market conditions,
actual results in the future could differ from the fund manager’s estimate of values and the difference may be
material to the financial statements.
As far as category C funds are concerned, adjustments to the NAV may be required to comply with the Fund’s
valuation policy.

15

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
2. Summary of significant accounting policies (continued)
2.5 Fair value consideration (continued)
The fair value attributable NAV is determined through applying either the Fund’s percentage ownership in the
underlying vehicle to the net asset value reflected in the most recent report or, to the extent available, the precise
share value at the same date, submitted by the respective fund manager. In order to bridge the interval between
the last available NAV and the year-end reporting year, a subsequent event review procedure is performed and if
necessary the reported NAV is adjusted.
The fair value of co-investments that are not quoted in an active market is determined by using valuation
techniques, similarly to the fair value of PE funds.
2.6 Critical accounting estimates and judgments
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment when applying the Company’s policy. Use of
available information and application of judgment are inherent in the formation of estimates. Actual results in
future could differ from such estimates and the differences may be material to the financial statements.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are
recognized in the year in which the estimates are revised and in any future years affected.
Information about significant areas of estimation uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognized in the financial statements are described
in notes 2.4 and 3.
Judgments and estimates are made in the determination of fair values of equity investments and on the
determination and disclosures of unconsolidated structured entities and investment entities in which the
Company has an interest as described in note 20.

2.7 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when
the Company currently has a legally enforceable right to set-off the recognised amounts and there is an intention
to settle on a net basis or realise the asset and settle the liability simultaneously.
2.8 Cash and cash equivalents
Cash and cash equivalents in the statement of financial position includes cash in hand, deposits held at call with
banks and other short-term investments in an active market with residual maturities of three months or less and
bank overdrafts. Bank overdrafts are shown in current liabilities in the statement of financial position.
2.9 Other payables and accrued expenses
Other payables and accrued expenses are not interest bearing and are stated at their nominal value which
approximates their fair value because of their short term to cash payment.

16

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
2. Summary of significant accounting policies (continued)
2.10 Shares
The Company is a closed-ended SICAR; consequently investors are not entitled to request redemption of their
Shares, except the European Investment Fund. The Company issues ordinary, class A and class B shares for
which the Management of the Fund decided to recognize them as a financial liability according to the definition
of IAS 32.
Shares may be redeemed at the initiative of the Company in some circumstances. Company may in particular
decide to:
redeem Shares of any Class, on a pro rata basis among shareholders in order to distribute net
distributable cash.
redeem Shares held by Restricted Person, or in case of admission of subsequent investors or
redeem shares held by an investor who fails to make required contributions or other payments.
2.11 Transaction costs
Transaction costs are costs incurred to acquire financial assets or liabilities at fair value through profit or loss.
They include fees and commissions paid to agents, advisers, brokers and dealers. Transaction costs, when
incurred, are immediately recognised in statement of comprehensive income.
2.12 Distributions payable to shareholders
Proposed distributions to shareholders are recognised in the statement of changes in net assets attributable to
holders of redeemable shares when they are appropriately authorised and no longer at the discretion of the
Company. This typically occurs when proposed distribution is ratified at the Annual General Meeting. The
distribution on the shares is recognised as a finance cost in the statement of changes in net assets attributable to
holders of redeemable shares.
2.13 Increase/decrease in net assets attributable to holders of redeemable shares from operations
Income not distributed is included in net assets attributable to holders of redeemable shares. Movements in net
assets attributable to shareholders are recognised in the statement of changes in net assets attributable to holders
of redeemable shares as finance costs.
2.14 Taxation
According to the 2004 Act, the Company is subject to Luxembourg income tax. However, income arising from
securities held by the Company, as well as income arising from the sale, contribution or liquidation of securities
held by the Company, does not constitute taxable income.
Income arising from liquid assets pending their investment in capital risk also does not constitute taxable income
under the 2004 Act. This exemption only applies to the twelve month year immediately prior to the investment of
such assets in risk capital assets.
The Company is not subject to net wealth tax and the activity of rendering services relating to the management
of a SICAR is exempt from VAT, no stamp duty or other tax is due on the issue or transfer of the Shares.

17

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
3. Financial risks
The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk
and interest rate risk and price risk), credit risk and liquidity risk.
The Company’s overall risk management programme seeks to maximise the returns derived for the level of risk
to which the Company is exposed and seeks to minimise potential adverse effects on the Company’s financial
performance. The Company’s policy allows it to use derivative financial instruments to both moderate and create
certain risk exposures.
The management of these risks is carried out by the Adviser under policies approved by the Board of Directors.
The Board provides written principles for overall risk management, as well as written policies covering specific
areas, such as foreign exchange risk, interest rate risk, credit risk, the use of derivative financial instruments and
non-derivative financial instruments and the investment of excess liquidity.
The Company’s use of leverage and borrowings can increase the Company’s exposure to these risks, which in
turn can also increase the potential returns the Company can achieve. The Company will have the power to
borrow money (directly or at the level of intermediary vehicles) through loans, repurchase obligations or
otherwise, and to secure those borrowings with liens or other security interests in, or mortgages on, the assets of
the Company provided that the Company will not, at any point in time, incur a level of borrowing in excess of an
amount equivalent to the lower of 20% of the aggregate commitments and the aggregate amount of undrawn
commitments at such date. Investments and lending in loan are limited to a maximum of 20% of the aggregate
commitments.
The Company uses different methods to measure and manage the various types of risk to which it is exposed;
these methods are explained below.
3.1 Market risk
(a)

Price Risk

The Company is exposed to equity securities price risk. This arises from investments held by the Company for
which prices in the future are uncertain. Where non-monetary financial instruments – for example, equity
securities – are denominated in currencies other than the euro, the price initially expressed in foreign currency
and then converted into euros will also fluctuate because of changes in foreign exchange rates. Paragraph
‘Foreign exchange risk’ below sets out how this component of price risk is managed and measured.
The Company’s policy is to manage price risk through diversification and selection of securities and other
financial instruments within specified limits set by the Board of Directors.
The Company will not invest more than 15% of the aggregate commitments in one single portfolio fund;
however, the Company may invest up to 20% of aggregate commitments in any one single portfolio fund subject
to the unanimous consent of all members of the investment committee.
The Company will seek to take participations of between 10 to 40% of a portfolio fund's aggregate
commitments, up to a maximum of 49.9%; to assess such 49.9% limit, participations in the relevant portfolio
fund held by the adviser (whether in its own name or as manager/agent/trustee/adviser for others) will be added
to the Company's participation; provided however that the Company may with the unanimous consent of the
members of the Investment Committee take a participation representing up to 100% of the aggregate
commitments to EAF Netherlands.

18

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
3. Financial risks (continued)
3.1 Market risk (continued)
(a)

Price Risk (continued)

The Company will exclusively enter into loan or other similar type of arrangements as lender alongside, or for
the preparation of, investments and lending will be limited to a maximum of 20% of the aggregate commitments
at any point in time. Where lending structures are used to take equity risks, such funding will be considered as
equity (convertible bonds and warrants etc.).
The Company may (but is not under an obligation to) use financial instruments to hedge the Company's exposure
to currency exchange rate fluctuations resulting from participations or commitments in portfolio funds not
denominated in Euro between the date of the commitment and the date on which such commitment is being
drawn down. The Company will not seek any form of hedging for any other risk of currency fluctuations and
such risk will be borne entirely by the Investors.
As at March 31, 2017, the fair value of the investments held was as follows:
March 31, 2017

Karmijn Kapitaal Fund I
Prime Ventures IV CV
Gilde Healthcare III CV
Newion Investments II
Forbion Capital Fund III C.V
Aglaia Oncology Fund II
Life Sciences Partners V C.V
Gilde Healthcare Services II
European Angels Fd S.C.A
Sicar -Netherl.
Henq III
HPE Parallel Fund II C.V.
SET Fund II C.V
Endeit Fund II Coöperatief UA
Keen Ventures Partners Fund
Total investments

%
Ownership
10,9%
12,0%
5,5%
11,53%
5,4%
9,3%
6,0%
15,0%
100%
29,9%
32,8%
9,9%
15,9%
13,1%

March 31, 2016
Fair value Fair value
adjustment

Capital
called

Fair value

Fair value
adjustment

Capital
called

1 951 115
15 426 546
2 169 928
2 902 783
2 332 849
1 221 200
4 161 681
3 825 000

3 5 29 260
13 020 044
4 212 652
4 026 228
3 718 014
811 115
3 547 200
2 868 393

16 755
(807 771)
(33 216)
396 370
1 580 096
(135 995)
(518 583)
(484 607)

2 949 999

1 996 126

(953 873)

2 623 077
9 609 114
1 352 787
2 052 783
1 563 931
461 821
2 584 898
2 100 000
699 999

4 184 467
8 010 383
3 428 727
2 779 858
1 369 000
187 730
2 489 000
1 628 000
699 999

852 743
(1 039 957)
(341 512)
69 657
(194 931)
(274 090)
(95 898)
(472 000)
-

2 018 863
5 175 000
2 485 935
3 380 000
1 411 237

1 429 015
5 449 929
2 318 373
3 901 775
1 404 200

(589 848)
274 929
(447 438)
521 775
(7 037)

2 018 863
2 700 000
1 761 477
1 560 000
-

2 018 863
2 700 000
2,041,353
1 560 000
-

279,876
-

51 412 136

52 232 325

(1 188 443)

31 088 750

33 097 380

(1,216,112)

19

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
3. Financial risks (continued)
3.1 Market risk (continued)
(a)

Price Risk (continued)

Price Sensitivity Analysis
Using the most conservative beta from the three listed PE indices, LPX Europe Price Index, LPX Venture Price
Index and LPX Buyout Price Index, and assuming market price movements of ±10 %, the final sensitivity (i.e.
beta x ±10 %) is applied to the net asset value to give an adjusted net asset value, which is then compared to the
net paid in.
The PE investment value would be impacted as follows:
Public market risk: ALL PRIVATE EQUITY
+10%
-10%
Retained Beta 0.673
Retained Beta 0.673
Final Sensitivity: +6.73%
Final Sensitivity: -6.73%
Total effect on equity
Total effect on equity
(EUR)
(EUR)
3 426 013
(3 426 013)
(b)

Foreign exchange risk

Foreign currency risk, as defined in IFRS 7, arises as the value of future transactions, recognised monetary assets
and monetary liabilities denominated in other currencies fluctuate due to changes in foreign exchange rates.
IFRS 7 considers the foreign exchange exposure relating to non-monetary assets and liabilities to be a
component of market price risk not foreign currency risk. However, management monitors the exposure on all
foreign currency denominated assets and liabilities.
As at March 31, 2017, there is no foreign exchange risk as all the transactions have been made in the functional
currency, EUR.
(c)

Interest rate risk

Interest rates are determined by factors of supply and demand in the international money markets, which are
influenced by macro-economic factors, speculation and central bank and government intervention.
Fluctuations in short term and/or long term interest rates may affect the value of the Company. Interest rate risk
is the risk resulting from changes in the level of interest rates, in the slope of the yield curve, in the shape of the
yield curve, or in any other interest rate relationship.
The Company’s exposure to interest risk rate is limited to its cash at bank and bank overdrafts that have a
maturity of less than one year. As at March 31, 2017, there is no significant interest rate risk.

20

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
3. Financial risks (continued)
3.2 Credit risk
The Company is exposed to credit risk, which is the risk that one party to a financial instrument will cause a
financial loss for the other party by failing to discharge an obligation.
For the Company, the greatest exposure in terms of credit risk relates to its cash and cash equivalents (Note 8).
The Company's policy is to minimize credit risk by entering into transactions only with leading financial
institutions and reputable industrial companies. Any such temporary investments must be placed with reputable
prime rated institutions such as CACEIS Bank Luxembourg ("CACEIS BL") for all its cash management and
potential credit risk relative to cash and cash equivalents. CACEIS BL, a member of the Crédit Agricole Group,
is a major actor in the asset servicing providers market and is one of the leaders in the French market. CACEIS
BL is rated A by Standard & Poor's as at March 31, 2017.
As at March 31, 2017, there are no financial assets that are past due or impaired.
3.3 Liquidity risk
Liquidity risk is the risk that the Company may not be able to generate sufficient cash resources to settle its
obligations in full as they fall due or can only do so on terms that are materially disadvantageous. Therefore, the
liquidity risk relates to working capital on the short-term and underlying investments on the long term.
The objective of the Company in relation to the liquidity risk is to ensure on both short-term and long-term
views that all financial liabilities will be met without impacting the return to its shareholders.
- Liquidity risk on payables
At the Company level, the liquidity risk may arise from the operating payables included in the statement of
financial position as at the year end. The Company must ensure that it owns sufficient cash and cash equivalent
to discharge itself from these short-term obligations.
As at March 31, 2017, the cash is sufficient to cover all the payables.
- Liquidity risk at exit date
The second component of risk relative to timely exit arises particularly from the fact that the Company invested
100% of its total assets in unquoted securities. As the Company invests most of its funds in illiquid assets, the
liquidity risk must be considered as one of the key risk for the Company.
However, even if the illiquidity aspect of the assets may impact the value of the investments at exit date, it is not
in the intent of the Company to implement an exit strategy over the short-term. The investment year of the
Company is not yet ended as at March 31, 2017.
- Liquidity risk on defaulting shareholders
At the Company level, liquidity risk may also arise upon failure by a shareholder to make payment pursuant a
capital call. Liquidity risk related to defaulting shareholder is mitigated by accepting commitments to the
Company only from reputable, well-informed institutional and professional investors.
The advisor manages liquidity risk by ensuring that the Company has sufficient cash and cash equivalent at all
times. In terms of liquidity risk at exit date, the advisor regularly monitors and simulates the exit strategies to
ensure that the optimum exit strategy will be executed within the term of the Company.

21

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
3. Financial risks (continued)
3.3 Liquidity risk (continued)
The table below analyses the Company's financial liabilities into relevant maturity groupings based on the
remaining year at the date of the statement of financial position to the contractual maturity date. The amounts in
the tables are the contractual undiscounted cash flows.
March 31, 2017
Less than 1
1 to 12 months
More than
No stated
Total
Financial liabilities
month
12 months
maturity
Other payables and accrued
77 156
77 156
expenses
Net assets attributable to
55 543 191
55 543 191
holders of redeemable shares
Contractual cash outflow
77 156
55 543 191
55 620 347

3.4 Capital risk management
The capital of the Company is represented by the net assets attributable to shareholders. The Company's
objective when managing capital is to safeguard the Company's ability to continue as a going concern in order to
provide returns for shareholders and benefits for other stakeholders and to maintain a strong capital base to
support the development of the investment activities of the Company.
The investment advisor monitors capital on the basis of the value of net assets attributable to shareholders.
The Company is a closed-ended SICAR, consequently investors are not entitled to request redemption of their
Shares, excepted for the ordinary and class A shares held by the European Investment Fund.
3.4.1 Fair Value Classification
The Company classifies fair value measurements using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. The fair value hierarchy has the following levels:
(i) Level 1: Investments whose values are based on quoted market prices in active markets, and therefore
classified within level 1. Quoted prices for these instruments are not adjusted.
(ii) Level 2: Financial instruments that trade in markets that are not considered to be active but are valued based
on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are
classified within level 2.
(iii) Level 3: Investments classified within level 3 have significant unobservable inputs, as they trade
infrequently. Pricing inputs are unobservable for the investment and includes situations where there is little, if
any, market activity for the investment. All the investments held by the Company and classified as financial
assets at fair value through profit or loss are included in this category. The inputs into the determination of fair
value require significant management judgment or estimation.

22

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
3. Financial risks (continued)
3.4 Capital risk management (continued)
3.4.1 Fair Value Classification (continued)
The table below analyses financial instruments measured at fair value as at March 31, 2017 according to the
level in the fair value hierarchy into which the fair value measurement is categorised:
Total balance as
Level 3
at March 31, 2017
Assets measured at fair value
Financial assets at fair value through profit or loss

EUR

EUR

52 232 325

52 232 325

The table below analyses financial instruments measured at fair value as at March 31, 2016 according to the
level in the fair value hierarchy into which the fair value measurement is categorised:
Total balance as
Level 3
at March 31, 2016
Assets measured at fair value
EUR
EUR
Financial assets at fair value through profit or loss

33 097 380

33 097 380

The changes in Level 3 instruments for the year ended March 31, 2017 are disclosed in Note 5. There were no
transfer between levels for the year ended March 31, 2017 (2016: none).
Please refer to Note 2.5 for further information on the determination of the fair value for level 3 instruments.

4. Dividend income
No dividend has been received during the year (2016: none).

23

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
5. Financial assets at fair value through profit or loss
Financial fixed assets held by the Company as at March 31, 2017 can be detailed as follows. The fair value is the sum of acquisition costs of the investment and the
cumulative fair value variations of the underlying investments since the acquisition date.
Name

Country

Investment date CCY
Drawn amount
* (in EUR)
4 398 159

Undrawn
commitment (in
EUR)
601 841

Cost (in EUR)
1 951 115

Fair Value (in
EUR)
3 529 260

Unrealised
gain/(loss) (in
EUR)
16 755

Karmijn Kapitaal Fund I

Netherlands

14/10/13

EUR

Total commitment
(in EUR)
5 000 000

Prime Ventures IV C.V

Netherlands

29/10/13

EUR

20 000 000

15 426 546

4 573 454

15 426 546

13 020 045

(807 771)

Gilde Healthcare III CV

Netherlands

19/11/13

EUR

8 000 000

4 903 922

3 096 078

2 169 928

4 212 652

(33 216)

Newion Investments II

Netherlands

07/01/14

EUR

5 000 000

3 075 000

1 925 000

2 902 783

4 026 228

396 370

Forbion Capital Fund III C.V

Netherlands

31/10/14

EUR

10 000 000

2 332 849

7 667 151

2 332 849

3 718 014

1 580 096

Aglaia Oncology Fund II

Netherlands

22/08/14

EUR

5 000 000

1 221 200

3 778 800

1 221 200

811 115

(135 995)

Life Sciences Partners V C.V

Netherlands

19/12/14

EUR

15 000 000

4 161 681

10 838 319

4 161 681

3 547 200

(518 583)

Gilde Healthcare Services II

Netherlands

23/12/14

EUR

15 000 000

3 825 000

11 175 000

3 825 000

2 868 393

(484 607)

European Angels Fd S.C.A Sicar Netherl.

Netherlands

18/09/15

EUR

45 000 000

2 950 000

42 050 000

2 949 999

1 996 126

(953 873)

Henq III Fund B.V.

Netherlands

07/07/15

EUR

12 500 000

2 018 750

10 481 250

2 018 863

1 429 015

(589 848)

HPE Parallel Fund II C.V.

Netherlands

01/10/15

EUR

15 000 000

5 175 000

9 825 000

5 175 000

5 449 929

274 929

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
5. Financial assets at fair value through profit or loss (continued)
Name

Country

Investment date CCY

Total commitment
(in EUR)

Drawn amount
* (in EUR)

Undrawn
commitment (in
EUR)

Cost (in EUR)

Fair Value (in
EUR)

Unrealised
gain/(loss) (in
EUR)

SET Fund II C.V

Netherlands

29/12/15

EUR

6 000 000

2 485 935

3 514 065

2 485 935

2 318 373

(447 438)

Endeit Fund II Coöperatief UA

Netherlands

27/08/15

EUR

20 000 000

3 380 000

16 620 000

3 380 000

3 901 775

521 775

Keen Ventures Partners Fund

Netherlands

10/10/16

EUR

11 500 000

1 411 237

10 088 763

1 411 237

1 404 200

(7 037)

193 000 000

56 765 279

136 234 721

51 412 136

52 232 325

(1 188 443)

* During the financial year, the capital repayments which were paid and which are not recallable are included in the amounts disclosed in the column “Drawn amount”.
The financial assets not measured at FVTPL include:
i. cash and cash equivalents, balances due from/to brokers and receivables/payables under sale and repurchase agreements. These are short-term financial assets and
financial liabilities whose carrying amounts approximate fair value, because of their short-term nature and the high credit quality of counterparties; and
ii. net assets attributable to holders of redeemable shares. The carrying amount of net assets attributable to holders of redeemable shares approximates their fair
value. The shares are categorised into Level 2 of the fair value hierarchy.

25

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
5. Financial assets at fair value through profit or loss (continued)
As at March 31, 2016, financial fixed assets held by the Company were as follows:
Name

Investment
date

CCY

Netherlands

14/10/13

EUR

Total
commitment (in
EUR)
5 000 000

Drawn amount
* (in EUR)
4 196 371

Undrawn
commitment (in
EUR)
803 629

Prime Ventures IV C.V

Netherlands

29/10/13

EUR

Gilde Healthcare III CV

Netherlands

19/11/13

EUR

20 000 000

9 609 114

10 390 886

8 000 000

3 436 125

4 563 875

Newion Investments II

Netherlands

07/01/14

EUR

5 000 000

2 225 000

2 775 000

2 052 783

2 779 858

Forbion Capital Fund III C.V

Netherlands

69 657

31/10/14

EUR

10 000 000

1 563 931

8 436 069

1 563 931

1 369 000

(194 931)

Aglaia Oncology Fund II
Life Sciences Partners V C.V

Netherlands

22/08/14

EUR

5 000 000

461 821

4 538 179

461 821

187 730

(274 090)

Netherlands

19/12/14

EUR

15 000 000

2 584 898

12 415 102

2 584 898

2 489 000

(95 898)

Gilde Healthcare Services II

Netherlands

23/12/14

EUR

15 000 000

2 100 000

12 900 000

2 100 000

1 628 000

(472 000)

European Angels Fd S.C.A Sicar Netherl.

Netherlands

18/09/15

EUR

45 000 000

699 999

44 300 001

699 999

699 999

-

Karmijn Kapitaal Fund I

Country

Fair Value (in
EUR)
4 184 467

Unrealised
gain/(loss) (in
EUR)
852 743

9 609 114

8 010 383

(1 039 957)

1 352 787

3 428 727

(341 512)

Cost (in EUR)
2 623 077

Henq III Fund B.V.

Netherlands

07/07/15

EUR

12 500 000

2 018 863

10 481 137

2 018 863

2 018 863

-

HPE Parallel Fund II C.V.

Netherlands

01/10/15

EUR

15 000 000

2 700 000

12 300 000

2 700 000

2 700 000

-

SET Fund II C.V

Netherlands

29/12/15

EUR

6 000 000

1 827 418

4 172 582

1 761 477

2 041 353

279 876

Endeit Fund II Coöperatief UA

Netherlands

27/08/15

EUR

20 000 000

1 560 000

18 440 000

1 560 000

1 560 000

181 500 000

34 983 540

146 516 460

31 088 750

33 097 380

(1 216 112)

* During the financial year, the capital repayments which were paid and which are not recallable are included in the amounts disclosed in the column “Drawn amount”.

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
5. Financial assets at fair value through profit or loss (continued)
5.1 Karmijn Kapitaal Fund I
As at March 31, 2017 the Company held 10,9% of Karmijn Kapitaal Fund I for a total commitment of EUR
5 000 000.
During the year, 3 drawdowns have been called: EUR 80 081 in June 2016, EUR 54 346 in September 2016 and
EUR 111 288 in January 2017. Moreover, EUR 878 548 in March 2017 have been repaid.
At the end of the year, EUR 601 841 remain unfunded.
5.2 Prime Ventures IV CV
As at March 31, 2017, the Company held 12,0% of Prime Ventures IV CV for a total commitment of EUR
20 000 000.
During the year, 3 drawdowns have been called: EUR 616 376 in July 2016, EUR 1 554 338 in July 2016 and
EUR 3 646 718 in September 2016.
At the end of the year, EUR 4 573 454 remain unfunded.
5.3 Gilde Healthcare III CV
As at March 31, 2017, the Company held 5,5% of Gilde Healthcare III CV for a total commitment of EUR 8 000
000.
During the year, 3 drawdowns have been called: EUR 850 137 in June 2016, EUR 417 145 in August 2016 and
EUR 55 558 in December 2016. Moreover, EUR 505 699 in March 2017 have been repaid.
At the end of the year, EUR 3 096 078 remain unfunded.
5.4 Newion Investments II
As at March 31, 2017, the Company held 11,53% of Newion Investments II for a total commitment of EUR
5 000 000.
During the year, 3 drawdowns have been called: EUR 200 000 in June 2016, EUR 150 000 in December 2016
and EUR 500 000 in March 2017.
At the end of the year, EUR 1 925 000 remain unfunded.

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
5. Financial assets at fair value through profit or loss (continued)
5.5 Forbion Capital Fund III C.V
As at March 31, 2017, the Company held 5,4% of Forbion Capital Fund III C.V for a total commitment of EUR
10 000 000.
During the year, 3 drawdowns have been called: EUR 75 536 in May 2016, EUR 468 868 in September 2016
and EUR 661 076 in January 2017. Moreover, EUR 436 562 in September 2016 have been repaid.
At the end of the year, EUR 7 667 151 remain unfunded.
5.6 Aglaia Oncology Fund II
As at March 31, 2017, the Company held 9,3% of Aglaia Oncology Fund II for a total commitment of EUR
5 000 000.
During the year, 6 drawdowns have been called: EUR 38 278 in April 2016, EUR 59 760 in August 2016, EUR
71 290 in October 2016, EUR 352 260 in December 2016, EUR 60 792 in January 2017 and EUR 177 000 in
February 2017.
At the end of the year, EUR 3 778 800 remain unfunded.
5.7 Life Sciences Partners V C.V
As at March 31, 2017, the Company held 6,0% of Life Sciences Partners V C.V for a total commitment of EUR
15 000 000.
During the year, 2 drawdowns have been called: EUR 847 765 in October 2016 and EUR 729 018 in February
2017.
At the end of the year, EUR 10 838 319 remain unfunded.
5.8 Gilde Healthcare Services II
As at March 31, 2017, the Company held 15,0% of Gilde Healthcare Services II for a total commitment of EUR
15 000 000.
During the year, 2 drawdowns have been called: EUR 720 000 in September 2016 and EUR 1 005 000 in
January 2017.
At the end of the year, EUR 11 175 000 remain unfunded.
5.9 European Angels Fd S.C.A Sicar -Netherlands.
As at March 31, 2017, the Company held 100,0% of European Angels Fd S.C.A Sicar -Netherlands for a total
commitment of EUR 45 000 000.
During the year, 2 drawdowns have been called: EUR 1 125 000 in April 2016 and in March 2017.
At the end of the year, EUR 42 050 000 remain unfunded.

28

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
5. Financial assets at fair value through profit or loss (continued)
5.10 Henq III Fund B.V.
As at March 31, 2017, the Company held 29,9% of Henq III for a total commitment of EUR 12 500 000.
During the year, no drawdown occured.
At the end of the year, EUR 10 481 250 remain unfunded.
5.11 HPE Parallel Fund II C.V.
As at March 31, 2017, the Company held 32,8% of HPE Parallel Fund II C.V. for a total commitment of EUR
15 000 000.
During the year, 2 drawdowns have been called: EUR 1 800 000 in May 2016 and EUR 675 000 in September
2016.
At the end of the year, EUR 9 825 000 remain unfunded.
5.12 SET Fund II C.V
As at March 31, 2017, the Company held 9,9% of SET Fund II C.V for a total commitment of EUR 6 000 000.
During the year, 11 drawdowns have been called: EUR 30 000 in April 2016, EUR 53 829 in June 2016, EUR
17 327 and EUR 30 000 in July 2016, EUR 161 487 and EUR 139 360 in September 2016, EUR 51 676 and
30 000 in October 2016, EUR 271 403 in December 2016, EUR 30 000 in January 2017 and EUR 129 189 in
March 2017. Moreover, EUR 2 299 in July 2016 and EUR 217 513 in March 2017 have been repaid.
At the end of the year, EUR 3 437 229 remain unfunded.
5.13 Endeit Fund II Coöperatief UA
As at March 31, 2017, the Company held 15,9% of Endeit Fund II Coöperatief UA for a total commitment of
EUR 20 000 000.
During the year, 2 drawdowns have been called: EUR 1 530 000 in July 2016 and EUR 290 000 in December
2016.
At the end of the year, EUR 16 620 000 remain unfunded.

29

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
5. Financial assets at fair value through profit or loss (continued)
5.14 Keen Ventures Partners Fund
As at March 31, 2017, the Company held 13,1% of Keen Ventures Partners Fund for a total commitment of EUR
11 500 000.
An initial amount has been called and paid in December 2016 for EUR 135 142.
Additional amount has been called during the year, EUR 1 276 095 in March 2017.
At the end of the year, EUR 10 088 763 remain unfunded.

6. Other payables and accrued expenses
As at March 31, 2017, accrued expenses are composed as follows:
As at March 31, 2017
EUR

As at March 31, 2016
EUR

Administration fees
Audit fees
Other fees *
Cash advance on capital call **

47 380
45 813
21 060
21 996
1 444
675
2 567 901
69 884
2 636 385
* Other fees are composed of equalization interest and of accrued interest payables.
** This item corresponds to a capital contribution paid in advance for Dutch Venture Initiative S.A. SICAR.

7. Tax debts
As at March 31, 2017, tax debts are composed as follows:
As at March 31, 2017
EUR
VAT on foreign invoices
3 259
Net Wealth Tax
4 013
7 272

As at March 31, 2016
EUR
3 259
802
4 061

8. Cash and cash equivalents
The position as at March 31, 2017 on cash account is as follows:
As at March 31, 2017
EUR
Cash at bank
3 375 801
3 375 801

As at March 31, 2016
EUR
5 362 111
5 362 111

30

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
9. Deferred charges
During the year, the Company paid insurance fees for the year from August 2016 to August 2017 for EUR 30
420 (2016: EUR 30 420) and the annual CSSF fees for 2017 for EUR 3 000 (2016: EUR 3 000). To reflect only
the expenses for the year ended on March 31, 2017, deferred charges for EUR 12 221 (2016: EUR 12 221) have
been booked.

10. Shares
As at March 31, 2017, the Company issued three types of shares. The movements in the number of shares are as
follows:
Redeemable shares
As at April 1, 2016
Shares issued during the year
Shares redeemed during the year
Equalisation
As at March 31, 2017

Class A
1
1

Class B
25 060 148
14 284 015
39 344 163

Ordinary
13 975 851
7 966 085
21 941 936

European Investment Fund has subscribed one Class A share for EUR 1. This kind of share, limited to a
maximum of one share, is reserved only for subscription by the EIF and grants its holder the right to receive
preferred return and Carried interest.
Class B Shares are reserved for subscription by PPM Oost and grant their holders the right to receive preferred
return.
Ordinary shares are reserved to eligible investors and have the same financial rights as the Class B.
The movements in the capital since the incorporation of the Fund are as follows:

Class A
Class B
Ordinary

Commitment

Called
commitment

Uncalled
commitment

EUR
1
130 000 000
72 499 999

EUR
1
39 344 163
21 941 936

EUR
90 655 837
50 558 063

202 500 000

61 286 100

141 213 900

The Net Asset Value per share for each class is as follow:

Class A
Class B
Ordinary

Net Asset Value per share
EUR
0.91
0.91
0.91

31

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
10. Shares (continued)
Distribution payable to shareholders
Subject to the remaining provisions, all net distributable cash will be distributed to investors in accordance with
the following waterfall:
(a)

Firstly, 100% to all investors in repayment of their capital contributions;

(b)
Secondly, 100% to all investors in proportion to their capital contributions until they have
received distributions equal to a 5% per annum compound interest calculated annually (the preferred
return) on the capital contributions at any time outstanding, from the date of payment of the same up to
the date of reimbursement upon distributions;
(c)
Thirdly (Catch Up), 100% to the holder of the class A Share until it has received in aggregate
an amount equal to 11.111% of the preferred return
(d)
Fourthly, 90% to all investors (including the holder of the class A share in such capacity) and
10% to the holder of the class A share.
For the year ended March 31, 2017, the total cash distribution amounts to nil (2016: EUR 1 198 728).

11. Interest income
This item is composed of interests received on investments for EUR 9 774 (2016: EUR 12 180).

12. Other financial income
As at March 31, 2017, this item is composed as follows:
As at March 31, 2017
EUR
Late entry fees
Other financial income

As at March 31, 2016
EUR

-

8 504
13 272

-

21 776

32

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
13. Administration and Professional fees
As at March 31, 2017, administration fees are as follows:
As at March 31, 2017

As at March 31, 2016

EUR

EUR

40 478
15 000
3 400
15 812
5 300
20 915

33 879
17 000
3 150
16 550
7 400
15 400

100 905

93 379

As at March 31, 2017, professional fees are as follows:
As at March 31, 2017
EUR

As at March 31, 2016
EUR

Accounting fees
Domiciliary Fees
Register and Transfer Agent fees
Supervisory Fees
Transaction Fees
Reporting fees

Audit fees
Legal fees
Tax advisory fees
Advisory Fees *

24 848
4 596
1 178 818

19 331
40 907
24 205
1 276 360

1 208 262

1 360 803

* An annual advisory fee equal to 0.75% of the aggregate investor commitments is paid in advance each quarter
by the Company.

14. Other operating fees
As at March 31, 2017, other operating fees are as follows:
As at March 31, 2017

As at March 31, 2016

EUR

EUR

80
4 441
26 000
3 830

19
3 229
30 420
3 863

34 351

37 531

Banking charges
Travel expenses
Insurance fees
Other fees

15. Interest charges
In 2017, this item is mainly composed of bank interests on cash account. In 2016, this item was only composed
of the payment of equalization interest for a total amount of EUR 181 370.

33

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
16. Other financial charges
In 2016, this item was fully composed of payment of rebate interest for a total amount of EUR 29 812 (2017:nil).

17. Taxes
This item is only composed of the payment of the net wealth tax for the current year for EUR 3 210. In 2016,
this item was composed of the corporate income tax for 2015 and the first quarter of 2016 and of the payment of
the net wealth tax for EUR 783.

18. Related-party transaction
Parties are considered to be related if one party has the ability to control the other party or exercise significant
influence over the other party in making financial or operational decisions.
As at March 31, 2017, the following transaction was carried out with related parties:

Advisory fees paid to EIF

Note
13

As at March 31, 2017
EUR
1 178 818

As at March 31, 2016
EUR
1 276 360

19. Interest in unconsolidated structured entities and in investment entities
The Company has interest in entities that have been designed so that voting or similar rights are not the dominant
factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only, or
when the relevant activities are directed by means of contractual arrangements. The Company has interest in
unconsolidated structured entities as described below.
Structured entities or investment entities may be established as corporations, trusts or partnerships. Structured
entities or investment entities generally:
•

subscribe to equity issued by SMEs in the context of Private Equity transactions

The table below describes the types of structured entities in which the Company concluded that it has an interest
and no control:
Type of structured entity

Nature and purpose

Interest held by the Fund

Limited Partnership in relation to
Private Equity operations (see
section 20.1)

Acquisition, holding, managing and
disposal of participations in any
enterprise subject to the conditions
laid down in the Limited
Partnership Agreement

• Investments in shares issued by
the Limited Partnership
• Capital and revenues
repayments

34

DUTCH VENTURE INITIATIVE S.A. SICAR
Notes to the financial statements (continued)
For the year ended March 31, 2017
19. Interest in unconsolidated structured entities and in investment entities (continued)
19.1 Interest in structured entities in relation to Private Equity operations
Below is a description of the Company’s involvement in unconsolidated structured entities by type. The
Company concluded that it does not control and therefore should not consolidate any entity described in section
20.1 as the Company does not have power over the relevant activities of the entities.
Operations are typically structured as follows:
•

An investment fund is setup with a General Partner (hereafter “GP”) and with a number of Limited
Partners (hereafter “LPs”), who form together the Limited Partnership. In addition, the Limited
Partnership Agreement discloses the investment strategy foreseen within the entity and agreed between
the GP and the LPs;

•

When financing is brought by the LPs, full authority and power is given to the GP, which could
delegate the investment part to an investment manager;

•

The use of voting rights by the LPs is often foreseen to revocate the GP either with a cause or without
cause. Even if an investment board within the entity is setup, it should be noted that such an investment
board has a consultative role only and is not therefore one of the decision-making bodies of the Limited
Partnership.

The Fund is an LP, it does not act as a GP and is from time to time a member of the consultative investment
board. Commitments have been made to funds that focus on investments in innovative SMEs with above average
future growth prospects and a strong competitive position in their sector.
As at the year end all investments in unconsolidated structured entities are recognised in assets at fair value
through the profit & loss.
As at 31 March 2017, the Company’s interest ranged from 5.50% to 100.00% and the maximum loss exposure
from PE structured entities is limited to the amount of committed investments as disclosed in Note 5. The nature
of these investments is further detailed in Note 5 and the risk exposure in Note 3.

20. Subsequent events
On 3 July 2017, the Board of Directors approved a resolution for the Fund’s second distribution to investors. The
amount to be distributed, pro-rata to their commitments, is EUR 5,173,335 and will be processed during the
month of July 2017.

35