Investment Update

Big win likely, but nothing is banked until the deal actually closes.

What the company is saying

CT Private Equity Trust plc is telling investors that it has struck a lucrative deal to sell its 23% stake in Cyberhawk Holdings Limited to Ondas Holdings Inc., projecting a substantial return. The company highlights that its initial £2.1 million investment in March 2019 is now expected to yield approximately $24 million in proceeds, equating to a net return of about 7.4 times cost and an internal rate of return (IRR) of 33%. The announcement frames this as a major success, emphasizing the anticipated uplift of £7.6 million (71%) over the last published holding value of £10.7 million as of 31 March 2026. The language is confident and upbeat, repeatedly using terms like "expected," "anticipated," and "represents" to underscore the scale of the projected gain. However, the company is careful to note that the transaction is still subject to regulatory approval and is only "expected to complete in Q3 2026," subtly burying the fact that none of the proceeds or returns are realised yet. The announcement is tightly focused on this single transaction, omitting any discussion of broader portfolio performance, dividend policy, or future investment strategy. Notable individuals named include Andrew Carnwath (Fund Manager) and Scott McEllen (Company Secretary), both of whom are institutional insiders rather than external validators; their involvement signals standard governance rather than extraordinary endorsement. The narrative fits a classic private equity communication strategy: spotlighting a headline exit to demonstrate value creation, while downplaying execution risk and the lack of realised cash. Compared to prior communications (for which no history is available), the messaging here is highly transaction-specific and forward-looking, with little context on how this fits into the company's overall performance or pipeline.

What the data suggests

The disclosed numbers show that CT Private Equity Trust plc invested £2.1 million in Cyberhawk in March 2019 for a 23% stake, and as of 31 March 2026, this holding was valued at £10.7 million. The company now expects to receive approximately $24 million (converted to £18.3 million at a stated exchange rate of 0.75832) from the sale, which would represent a 7.4x return on cost and a 33% IRR if realised. The anticipated proceeds are said to be a £7.6 million (71%) uplift over the last published holding value, and would account for about 3.7% of the company's Q1 2026 net asset value, with a 1.5% uplift to NAV. However, all of these figures are forward-looking and contingent on the deal closing; there is no evidence in the announcement that any proceeds have been received or that the transaction is unconditional. The only realised data are the initial investment amount and the most recent holding value. There is no disclosure of the total consideration for the entire Cyberhawk sale, the terms agreed with Ondas Holdings Inc., or the broader impact on the company's portfolio. The financial disclosures are detailed for this single investment but do not provide context on overall company performance, making it difficult to assess the materiality of this exit in the bigger picture. An independent analyst would conclude that while the projected return is impressive, it is not yet realised, and the absence of broader financials or deal certainty tempers the headline numbers.

Analysis

The announcement is upbeat, highlighting a significant uplift and strong IRR from the anticipated sale of Cyberhawk. However, most of the key claims—such as the $24 million proceeds, 7.4x return, and 33% IRR—are forward-looking and contingent on the transaction completing, which is subject to regulatory approval and expected in Q3 2026. Only the initial investment and the most recent holding value are realised facts; all other financial benefits are projections. The language is proportionate to the disclosed numbers, but the announcement frames anticipated outcomes as if they are nearly certain, despite the deal not yet being closed. There is no evidence of a large new capital outlay, and the expected benefit realisation is within the next 6-24 months, so capital intensity is not flagged. The gap between narrative and evidence is moderate: the uplift and returns are not yet realised, and the announcement does not provide details on deal certainty or broader portfolio impact.

Risk flags

• ●Execution risk is high because the transaction is subject to regulatory approval and is only expected to complete in Q3 2026. If approval is delayed or denied, the anticipated proceeds and returns may never materialise, directly impacting investor outcomes.
• ●The majority of the announcement's claims are forward-looking, including the $24 million proceeds, 7.4x return, and 33% IRR. This matters because forward-looking statements are inherently uncertain and can be derailed by factors outside the company's control.
• ●There is a lack of disclosure on the total consideration for the entire Cyberhawk sale and the specific terms agreed with Ondas Holdings Inc. Without this information, investors cannot fully assess the likelihood of completion or the risk of adverse deal amendments.
• ●The announcement provides no information on the broader portfolio, overall net asset value, or comparative period data. This omission makes it difficult for investors to judge the materiality of the transaction or the company's overall financial health.
• ●No realised proceeds or cash receipts have been disclosed; all financial benefits are projections. This is a critical risk because anticipated gains can evaporate if the deal falls through or is renegotiated.
• ●The announcement omits any discussion of potential tax, transaction costs, or other deductions that could reduce net proceeds. Investors may be overestimating the actual cash benefit if these factors are material.
• ●Named individuals (Andrew Carnwath, Fund Manager; Scott McEllen, Company Secretary) are internal and do not provide external validation or additional credibility to the transaction. Their involvement is standard and does not mitigate execution or counterparty risk.
• ●The company does not address what happens if the deal is delayed or fails, nor does it provide a contingency plan. This lack of downside scenario planning is a red flag for risk-aware investors.

Bottom line

For investors, this announcement signals a potentially significant value realisation from the sale of a portfolio company, but none of the projected gains are locked in until the deal actually closes. The company's narrative is credible in that the initial investment and most recent holding value are clearly disclosed, but all of the headline returns—$24 million proceeds, 7.4x cost, 33% IRR—are forward-looking and contingent on regulatory approval and deal completion. The involvement of named insiders is routine and does not provide additional comfort or external validation. To change this assessment, the company would need to disclose that the transaction has closed, proceeds have been received, and net returns are realised, or provide binding, unconditional agreements. Investors should watch for updates on regulatory approval, deal closure, and actual cash receipts in the next reporting period, as well as any disclosures on transaction costs or tax impacts. This announcement is worth monitoring but not acting on until the deal is completed and the cash is in the bank. The single most important takeaway is that while the projected return is impressive, it is not yet realised, and investors should treat all forward-looking claims with caution until the transaction is fully executed.

Announcement summary

(LSE: CTPE) CT Private Equity Trust plc announced that Cyberhawk Holdings Limited, in which the Company has an investment, has entered an agreement for its sale to Ondas Holdings Inc. The Company made its initial investment of £2.1 million in Cyberhawk in March 2019, acquiring a 23% stake in the business. The transaction is expected to generate proceeds of approximately $24 million for CT Private Equity Trust plc, representing a net return of c.7.4x cost and an IRR of c.33%. As at 31 March 2026, the Company's investment in Cyberhawk was valued at £10.7 million. The anticipated sale proceeds of $24 million (£18.3 million*) represent an uplift of £7.6 million (71%) to the Company's last published holding value. Anticipated proceeds represent approximately 3.7% of the Company's Q1 2026 net asset value and an uplift of approximately 1.5% of net asset value. The transaction is subject to regulatory approval and is expected to complete in Q3 2026.

Disagree with this article?