Macquarie Wellington Venture Growth Fund

Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and unit price variability over the short or long term). The risks of investing in this Fund include:

Liquidity risk: Investments in the Fund should be considered illiquid, especially during Lock-up. The Fund will not accept redemptions until the calendar quarter commencing 1 January 2030. Even after Lock-up, there is no guarantee of liquidity and redemptions may be restricted at any time. No public market exists for the units, and none is expected to develop. The Fund invests almost all of its assets in the Wellington Venture Growth Evergreen Fund (Sub-Fund), a sub-fund of the Wellington Management Funds (Luxembourg) Private Markets SCA-SICAV. A substantial portion of the Sub-Fund’s assets are intended to be invested in Private Markets Investments which are invested for the long term, have limited liquidity and cannot readily be liquidated without impacting the Sub-Fund’s ability to generate full value. This may result in delays or suspension of redemptions by the Sub-Fund (and therefore, by the Fund). Large redemption volumes may substantially reduce Sub-Fund liquidity, increase concentration of illiquid assets, and negatively impact investment returns and the Sub-Fund’s ability to meet further redemption requests. Although the Trustee of the Fund will seek to apply the liquidity mechanisms disclosed in the offer document of the Fund, it may not be able to do so during certain periods, or at all, due to the General Partner of the Sub-Fund not accepting or processing redemptions or suspending redemptions, which it has a broad discretion to do. Redemptions from the Sub-Fund for each calendar quarter are generally capped at 2.5% of the net asset value of the Sub-Fund (measured using the average net asset value of the Sub-Fund as of the end of the immediately preceding three months). Investors must be prepared to bear the risks of owning the units in the Fund for an extended period and may not receive any income or capital until the Fund’s investments are realised, which may not be until or following termination of the Fund.

Valuation risk: The Fund may have exposure to assets that are difficult or impossible to accurately value due to the absence of readily ascertainable market values or other valuation information. Valuations involve judgment, may not always prove accurate and may not reflect the price that would be received on liquidation. Valuation affects performance fees, management fees, and application/redemption prices. Accordingly, investors may receive a unit price on application or redemption that is substantially greater or lesser than the actual liquidation value of the Fund, which, in turn, could dilute existing investors.

Private equity investment risk: The risk of an investment in the Fund is significantly higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including between the time a redemption request or application for units is made and the time the redemption or application unit price is calculated. Changes in the valuation of the investments held by the Sub-Fund may result in the loss of principal or large movements in the unit price of the Fund. Investments in private equity carry a high degree of risk due to the business and financial uncertainties facing individual issuers. Many portfolio companies, particularly those in early or growth stages, may have limited operating histories, evolving business models, or unproven revenue streams, increasing the risk of underperformance or failure. Investments in private companies are inherently illiquid, and the Sub-Fund may face challenges exiting investments due to lack of secondary markets, limited buyer interest, or unfavourable conditions. Unlisted companies are intrinsically riskier than quoted companies as they may be smaller, more vulnerable to changing conditions, and more dependent on a small management team.

More information on the risks of investing in the Fund is contained in the Information Memorandum, which should be considered before deciding to invest in the Fund.​