Investment Update

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

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.

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