HATTERAS VC CO-INVESTMENT FUND II, LLC
|
|||||||||||
(A Delaware Limited Liability Company)
|
|||||||||||
SCHEDULE OF INVESTMENTS
|
|||||||||||
March 31, 2021 (Unaudited)
|
Descriptions of Investment
|
Initial Investment Date
|
Cost
|
Fair Value
|
% of Members' Capital
|
||||||||||
Private Company:
|
||||||||||||||
Healthcare:
|
||||||||||||||
Clinipace, Inc. (1)(2)(3)
|
||||||||||||||
Raleigh, North Carolina
|
||||||||||||||
100,158 shares of
|
||||||||||||||
Series I Preferred Stock
|
Sep. 2011
|
500,000
|
188,487
|
23.50
|
%
|
|||||||||
Total Healthcare
|
500,000
|
188,487
|
23.50
|
%
|
||||||||||
Software:
|
||||||||||||||
Kollective Technology. (1)(2)(3)
|
||||||||||||||
Sunnyvale, California
|
||||||||||||||
1,740,151 shares of
|
||||||||||||||
Common Stock
|
Jul. 2010
|
730,193
|
295,826
|
36.88
|
%
|
|||||||||
Posit Science Corporation (1)(2)(3)
|
||||||||||||||
San Fransisco, California
|
||||||||||||||
80,515 shares of
|
||||||||||||||
Common Stock
|
Dec. 2009
|
200,000
|
36,163
|
4.51
|
%
|
|||||||||
Posit Science Corporation (1)(2)(3)
|
||||||||||||||
San Fransisco, California
|
||||||||||||||
21,669 shares of
|
||||||||||||||
Series AA Preferred Stock
|
Sep. 2010
|
11,893
|
9,283
|
1.16
|
%
|
|||||||||
Total Software
|
942,086
|
341,272
|
42.55
|
%
|
||||||||||
Total Investments in Private Companies (United States)
|
1,442,086
|
529,759
|
66.05
|
%
|
||||||||||
Short Term Investment:
|
||||||||||||||
First American Treasury Obligations Fund - Class X, 0.02% (4)
|
372,343
|
372,343
|
46.42
|
%
|
||||||||||
Total Short Term Investment
|
372,343
|
372,343
|
46.42
|
%
|
||||||||||
Liabilities in excess of Other Assets
|
(99,988
|
)
|
-12.47
|
%
|
||||||||||
Members' Capital
|
$
|
802,114
|
100.00
|
%
|
(1) Non-income producing.
|
||||||
(2) Portfolio holdings are subject to substantial restrictions as to resale.
|
||||||
(3) Non-marketable securities
|
||||||
(4) Rate reported is 7-day yield reported as of March 31, 2021
|
||||||
The cost and fair value of restricted Private Company investments are $1,442,086 and $529,759, respectively.
|
||||||
See notes to financial statements.
|
• |
Level 1 – quoted prices (unadjusted) in active markets for identical assets and liabilities
|
• |
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
|
• |
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Private Company1
|
||||||||||||||||
Preferred Stock
|
$
|
-
|
$
|
-
|
$
|
197,770
|
$
|
197,770
|
||||||||
Common Stock
|
-
|
-
|
331,989
|
331,989
|
||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
529,759
|
$
|
529,759
|
||||||||
1 All private companies held in the Fund are level 3 securites. For a detailed break-out of private companies by industry
classifications, please refer to the Schedule of Investments.
|
Preferred Stock
|
Common Stock
|
Total
|
||||||||||
Balance as of July 1, 2020
|
$
|
941,342
|
$
|
45,248
|
$
|
986,590
|
||||||
Net Realized Gain/(Loss)
|
334,328
|
(566,003
|
)
|
(231,675
|
)
|
|||||||
Change in Unrealized Appreciation/(Depreciation)
|
75,034
|
564,682
|
639,716
|
|||||||||
Transfers In/(Out) of Investment Categories*
|
(288,062
|
)
|
288,062
|
-
|
||||||||
Gross Purchases
|
-
|
-
|
-
|
|||||||||
Gross Sales
|
(864,872
|
)
|
-
|
(864,872
|
)
|
|||||||
Balance as of March 31, 2021
|
$
|
197,770
|
$
|
331,989
|
$
|
529,759
|
||||||
* Transfers in or out of investment categories relfect changes in investment categories and are represented by their balance at
the beginning of the period.
|
The following is a summary of quantitative information about significant unobservable input used for Level 3 fair value
measurements for investments held as of March 31, 2021.
|
||||||||
Type of Investment
|
Fair Value as of March 31, 2021
|
Valuation Technique
|
Unobservable Input
|
Multiple Used
|
Discount Used
|
Impact to Valuation from
Increase in Input
|
||
Common Stock
|
$ |
295,826
|
Discounted cash flows-M&A multiples
|
Discount rate
|
N/A
|
19.25%
|
Decrease
|
|
Forward M&A revenue multiple
|
3.03x
|
N/A
|
Increase
|
|||||
Discount
|
Discount for lack of marketability
|
N/A
|
26.50%
|
Decrease
|
||||
Preferred Stock
|
188,487
|
Most recent transaction
|
Private financing
|
N/A
|
N/A
|
N/A
|
||
Common Stock
|
36,163
|
Market comparable companies
|
Forward revenue multiple
|
2.84x
|
N/A
|
Increase
|
||
Discount
|
Discount for lack of marketability
|
N/A
|
48.17%
|
Decrease
|
||||
Preferred Stock
|
9,283
|
Market comparable companies
|
Forward revenue multiple
|
2.84x
|
N/A
|
Increase
|
||
Discount
|
Discount for lack of marketability
|
N/A
|
48.17%
|
Decrease
|
||||
Total Investments
|
$ |
529,759
|
|
|
|
|
|