N-CSRS 1 fp0070617_ncsrs.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

 

Investment Company Act file number 811-22990

 

Pomona Investment Fund

 

(Exact name of registrant as specified in charter)

 

780 Third Avenue, 46th Floor

New York, NY 10017

 

(Address of principal executive offices) (Zip code)

 

Michael D. Granoff

Pomona Management LLC

780 Third Avenue, 46th Floor

New York, NY 10017

 

(Name and address of agent for service)

 

registrant's telephone number, including area code: (212) 593-3639

 

Date of fiscal year end: March 31

 

Date of reporting period: September 30, 2021

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

ITEM 1. REPORTS TO STOCKHOLDERS.

 

(a)The Report to Shareholders is attached herewith.

 

 

 

   

 

Table of Contents

 

 

  PAGE
Consolidated Schedule of Investments 1
Consolidated Statement of Assets and Liabilities 8
Consolidated Statement of Operations 9
Consolidated Statements of Changes in Shareholders’ Capital 10
Consolidated Statement of Cash Flows 12
Consolidated Financial Highlights 13
Consolidated Notes to Financial Statements 16
Additional Information 25

   

 

Pomona Investment Fund Consolidated Schedule of Investments
  September 30, 2021 (Unaudited)

 

Private Equity Investments (88.67%)(a)(b)  Shares  Geographic Region(c)  Acquisition Date  Fair Value
Direct Investments/Co-Investments (4.30%)                
Dyal V Nimbus Cayman (B), L.P.(d)       North America  09/10/2021  $6,035,899 
Dyal V Nimbus U.S. (A), LLC(d)       North America  09/10/2021   5,421,535 
Investcorp Aspen Offshore Fund, L.P.(d)       North America  07/01/2019   5,709,098 
Roark Capital Partners II Sidecar, L.P.(d)       North America  10/18/2018   1,659,293 
Total Direct Investments / Co-Investments              18,825,825 
                 
Primary Investments (3.40%)                
Aberdeen U.S. Private Equity VIII (Offshore), L.P.       Europe  04/11/2019   1,814,398 
Berkshire Fund X-A, L.P.(d)       North America  09/22/2020   375,187 
CB Offshore Equity X, L.P.(d)       North America  11/20/2020   669,159 
Clearlake Capital Partners VII (USTE), L.P.(d)       North America  09/17/2021   – 
Dyal V Offshore Investors, L.P.(d)       North America  09/20/2021   1,549,338 
Genstar Capital Partners X, L.P.(d)       North America  04/01/2021   (18,997)
Hellman & Friedman Capital Partners IX (Parallel), L.P.(d)       North America  09/28/2018   2,227,467 
Hellman & Friedman Capital Partners X (Parallel), L.P.(d)       North America  05/10/2021   (8,573)
Roark Capital Partners V (TE), L.P.       North America  04/30/2018   5,519,336 
TA XIV-B, L.P.(d)       North America  05/27/2021   (9,049)
The Veritas Capital Fund VII, L.P.(d)       North America  10/10/2019   2,774,380 
Total Primary Investments              14,892,646 
                 
Seasoned Primary Investments (5.00%)                
Aerospace, Transportation and Logistics Fund II, L.P.(d)       North America  03/31/2019   1,947,337 
Avista Capital Partners (Offshore) IV, L.P.       North America  12/01/2017   443,596 
Gryphon Partners IV, L.P.       North America  06/24/2016   5,657,411 
Ironsides Offshore Direct Investment Fund V, L.P.(d)       North America  12/31/2019   3,921,939 
L Catterton IX, L.P.       North America  03/09/2021   2,938,583 
Merit Mezzanine Fund VI, L.P.       North America  03/02/2018   2,416,212 
VSS Structured Capital Parallel III, L.P.       North America  01/26/2018   4,583,143 
Total Seasoned Primary Investments              21,908,221 
                 
Secondary Investments (75.97%)                
AAA Partners, Inc.(d)(e)   2,445,599   North America  06/21/2019   4,222,489 
ABRY Partners V, L.P.(d)       North America  12/31/2018   4,212 
Accel-KKR Capital Partners CV III, L.P.(d)       North America  06/30/2021   4,694,243 
Accel-KKR Capital Partners III, L.P.(d)       North America  06/30/2021   11,955 
Advent International GPE VI-A Limited Partnership(d)       North America  03/31/2021   194,412 
Advent International GPE VII-B Limited Partnership(d)       North America  06/30/2015   2,052,299 
Advent International GPE VIII-C Limited Partnership(d)       North America  12/31/2019   2,753,920 
Altor 2003 Fund (No. 1) LP(d)       Europe  12/31/2018   8,406 
AP VIII Private Investors Offshore (USD), L.P.       North America  06/30/2017   117,118 
AP VIII Private Investors, LLC       Europe  06/28/2019   2,358,437 
Apax Europe VI - A, L.P.(d)       Europe  12/30/2016   722,975 
Apax Europe VII, L.P.(d)       Europe  03/31/2021   29,440 
Apollo Investment Fund VI, L.P.(d)       North America  12/31/2018   70,010 
Apollo Investment Fund VII, L.P.       North America  09/29/2017   39,725 

 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

Semi-Annual Report | September 30, 2021 1

   

 

 

Pomona Investment Fund Consolidated Schedule of Investments
  September 30, 2021 (Unaudited)

 

Private Equity Investments (88.67%)(a)(b) (continued)  Shares  Geographic Region(c)  Acquisition Date  Fair Value
Secondary Investments (75.97%) (continued)                
Ares Corporate Opportunities Fund III, L.P.       North America  12/31/2019  $200,783 
Artiman Ventures III, L.P.(d)       North America  03/31/2021   765,028 
Atlas Capital Resources, L.P.       North America  06/30/2021   7,086,076 
Audax Mezzanine Fund III, L.P.       North America  09/30/2016   1,347,458 
Audax Private Equity Fund II, L.P.(d)       North America  12/31/2018   26,082 
Audax Private Equity Fund III, L.P.(d)       North America  09/30/2015   411,271 
Audax Private Equity Fund IV, L.P.       North America  09/29/2015   12,861 
Audax Private Equity Fund, L.P.(d)       North America  12/31/2018   14,202 
Audax Senior Loan Fund III, L.P.       North America  09/28/2018   409,791 
Avista Capital Partners (Offshore) II, L.P.(d)       North America  12/31/2019   343,261 
Avista Capital Partners III, L.P.(d)       North America  12/31/2019   56,405 
Avista Healthcare Partners, L.P.(d)       North America  12/31/2019   2,642,812 
Bain Capital Asia Fund II, L.P.(d)       North America  12/31/2019   1,064,999 
Bain Capital Distressed and Special Situations 2013 E, L.P.(d)       North America  06/30/2015   213,059 
Bain Capital Europe Fund III, L.P.(d)       North America  12/30/2016   270,725 
Bain Capital Fund IX, L.P.(d)       North America  12/31/2018   44,113 
Bain Capital Fund VII, L.P.       North America  12/29/2017   9,256,628 
Bain Capital Fund VIII, L.P.(d)       North America  12/30/2015   10,597 
Bain Capital Fund VIII-E, L.P.(d)       North America  12/31/2018   4,375 
Bain Capital Fund X, L.P.(d)       North America  12/30/2015   2,429,386 
Bain Capital IX Coinvestment Fund, L.P.(d)       North America  12/31/2018   – 
Bain Capital VII Coinvestment Fund, L.P.       North America  12/29/2017   124,973 
Bain Capital VIII Coinvestment Fund, L.P.(d)       North America  12/31/2018   1,135 
BC Asia III Private Investors, L.P.       North America  06/30/2020   2,787,540 
BC Europe IV Private Investors, L.P.       North America  06/30/2020   1,265,957 
BC European Capital IX-8, L.P.(d)       Europe  12/31/2020   2,029,456 
BC Life Sciences Private Investors, L.P.(d)       North America  06/30/2020   3,086,654 
BC XI Private Investor, L.P.       North America  06/30/2020   3,337,665 
BC XII Private Investors, L.P.       North America  06/30/2020   3,673,896 
BCP V-S, L.P.(d)       North America  09/29/2017   49,318 
Berkshire Fund IX, L.P.(d)       North America  09/03/2021   10,449,507 
Berkshire Fund VI, Limited Partnership(d)       North America  12/31/2018   4,730,028 
Berkshire Fund VII, L.P.(d)       North America  12/31/2018   251,029 
Berkshire Fund VIII (IND), L.P.(d)       North America  09/03/2021   10,660,413 
Blackstone Capital Partners V, L.P.(d)       North America  09/29/2017   156,566 
Bridgepoint Europe IV, L.P.(d)       Europe  03/31/2021   265,968 
Carlyle Partners V, L.P.(d)       North America  12/31/2019   119,429 
Catterton Growth Partners, L.P.(d)       North America  06/30/2021   944,908 
CDRF8 Private Investors, LLC       North America  06/30/2017   187,121 
Cerberus Institutional Partners, L.P. -Series Four       North America  12/30/2016   114,666 
CHP III, L.P.(d)       North America  09/29/2017   359,067 
CI Capital Investors II, L.P.(d)       North America  12/31/2019   908,788 
CI Capital Investors III, L.P.(d)       North America  12/31/2019   6,182,785 
Clearlake Capital Partners IV, L.P.       North America  12/31/2019   2,091,193 
Clearlake Opportunities Partners (P-Offshore) L.P(d)       North America  12/31/2019   926,760 
Comvest Capital II International (Cayman), L.P.       North America  06/29/2018   390,271 
Comvest Capital III International (Cayman), L.P.       North America  06/29/2018   1,001,808 
Court Square Capital Partners (Offshore) III, L.P.       North America  12/31/2020   1,067,294 

 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

2 www.pomonainvestmentfund.com

   

 

Pomona Investment Fund Consolidated Schedule of Investments
  September 30, 2021 (Unaudited)

  

Private Equity Investments (88.67%)(a)(b) (continued)  Shares  Geographic Region(c)  Acquisition Date  Fair Value
Secondary Investments (75.97%) (continued)            
DCM IV, L.P.(d)       North America  06/30/2015  $96,533 
DCM V, L.P.(d)       North America  06/30/2015   322,513 
DCM VI, L.P.(d)       North America  06/30/2015   1,976,353 
ECI 9, L.P.(d)       Europe  03/31/2021   197,983 
Endeavour Capital Fund V, L.P.(d)       North America  03/31/2021   31,264 
Energy Capital Partners II, L.P.(d)       North America  03/31/2021   49,792 
EQT VII (No. 1) Limited Partnership(d)       Europe  12/31/2020   1,279,575 
EQT VIII (No.1) SCSp(d)       Europe  12/31/2020   2,014,015 
Francisco Partners II, L.P.       North America  12/31/2018   170,635 
FSN Capital IV, L.P.(d)       Europe  12/31/2019   795,655 
General Atlantic Investment Partners 2013, L.P.       North America  12/31/2019   3,699,000 
Genstar Capital Partners VII (EU), L.P.(d)       North America  12/31/2020   1,082,264 
Genstar Capital Partners VIII BL (EU), L.P.       North America  12/31/2020   2,648,422 
Genstar VIII Opportunities Fund I (EU), L.P.(d)       North America  12/31/2020   1,615,664 
GESD Investors II, L.P.(d)       North America  09/29/2017   67,597 
Green Equity Investors CF, L.P.(d)       North America  04/26/2021   3,361,915 
Green Equity Investors Side VI, L.P.(d)       North America  06/30/2021   3,505,671 
Green Equity Investors V, L.P.(d)       North America  09/29/2017   325,364 
Gridiron Capital Fund II, L.P.(d)       North America  12/31/2019   1,928,036 
Gridiron Energy Feeder I, L.P.(d)       North America  05/10/2017   2,304,295 
Gryphon Co-Invest Fund IV, L.P.       North America  12/31/2020   283,682 
Gryphon Partners 3.5, L.P.(d)       North America  12/31/2020   260,614 
Gryphon Partners IV, L.P.       North America  12/31/2020   1,740,742 
Gryphon Partners V-A, L.P.(d)       North America  12/31/2020   2,926,862 
GS Capital Partners VI Parallel, L.P.(d)       North America  12/31/2019   110,649 
GSO Capital Opportunities Overseas Fund, L.P.(d)       North America  12/30/2015   49,366 
GSO Private Investors Offshore II, L.P.       North America  06/30/2017   79,242 
H&F Arrow 2, L.P.(d)       North America  04/13/2021   1,926,335 
H&F Executives Fund IX, L.P.(d)       North America  09/30/2020   2,780,184 
H&F Executives Fund VIII, L.P.       North America  09/30/2020   4,716,779 
H.I.G. Bayside Debt & LBO Fund II, L.P.(d)       North America  12/31/2018   318,725 
H.I.G. Bayside Loan Opportunity Cayman Fund II, L.P.(d)       North America  03/31/2021   150,634 
H.I.G. Capital Partners IV, L.P.       North America  12/31/2018   835,688 
Harvest Partners V, L.P.(d)       North America  12/29/2017   2,299 
Hellman & Friedman Capital Partners VI, L.P.(d)       North America  03/31/2019   137,403 
Hellman & Friedman Capital Partners VII (Parallel), L.P.       North America  06/28/2019   3,626,155 
Hellman & Friedman Capital Partners VII, L.P.(d)       North America  06/30/2021   1,218,289 
HFCP VII (Parallel-A), L.P.(d)       North America  09/30/2021   1,282,719 
HgCapital 5, L.P.(d)       Europe  12/31/2018   70,349 
HPE Continuation Fund I C.V.(d)       Europe  05/27/2021   – 
Icon Partners II, L.P.(d)       North America  04/27/2021   764,748 
Icon Partners III, L.P.(d)       North America  05/10/2021   4,332,207 
Insight Equity I, L.P.(d)       North America  12/31/2018   19,941 
Insight Equity II, L.P.(d)       North America  12/31/2018   784,490 
Insight Partners Continuation Fund, L.P.(d)       North America  08/14/2019   9,755,729 
Insight Venture Partners (Cayman) IX, L.P.       North America  09/30/2019   3,688,989 
Insight Venture Partners (Cayman) VIII, L.P.(d)       North America  09/30/2019   2,085,907 
Insight Venture Partners Coinvestment Fund (Delaware) III, L.P.(d)       North America  09/30/2019   566,165 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

Semi-Annual Report | September 30, 2021 3

   

 

Pomona Investment Fund Consolidated Schedule of Investments
  September 30, 2021 (Unaudited)

 

Private Equity Investments (88.67%)(a)(b) (continued)  Shares  Geographic Region(c)  Acquisition Date  Fair Value
Secondary Investments (75.97%) (continued)            
Insight Venture Partners Coinvestment Fund II, L.P.(d)       North America  06/30/2015  $920,566 
Insight Venture Partners Coinvestment Fund III, L.P.(d)       North America  06/30/2015   276,303 
Insight Venture Partners Growth-Buyout Coinvestment Fund                
(Cayman), L.P.       North America  09/30/2019   1,074,072 
Insight Venture Partners Growth-Buyout Coinvestment Fund, L.P.       North America  09/30/2019   67,487 
Insight Venture Partners IX, L.P.       North America  09/30/2019   94,523 
Insight Venture Partners VI, L.P.(d)       North America  06/30/2015   16,154 
Insight Venture Partners VII, L.P.       North America  06/30/2015   4,033,607 
Insight Venture Partners VIII (Co-Investors), L.P.(d)       North America  12/31/2019   249,889 
Insight Venture Partners VIII, L.P.(d)       North America  06/30/2015   3,180,730 
J.W. Childs Equity Partners III, L.P.(d)       North America  12/31/2018   – 
JMI Equity Fund VI, L.P.       North America  09/29/2017   17,971 
Kelso Investment Associates VIII, L.P.       North America  09/29/2017   874,596 
KKR 2006 Fund, L.P.(d)       North America  09/29/2017   71,801 
KKR 2006 Private Investors Offshore, L.P.(d)       North America  06/30/2017   320,789 
KKR Americas Fund XII, L.P.       North America  03/31/2021   3,779,990 
KPS Special Situations Fund III (Supplemental Feeder), Ltd.(d)       North America  09/29/2017   11,339 
KPS Special Situations Fund III, L.P.(d)       North America  09/29/2017   8,368 
Lightspeed Venture Partners IX, L.P.(d)       North America  12/31/2020   5,362,515 
Lion/Simba Investors, L.P.       Europe  12/21/2020   3,528,696 
Littlejohn Fund III, L.P.(d)       North America  12/31/2018   18,642 
Littlejohn Fund IV, L.P.       North America  12/30/2015   434,802 
Lovell Minnick Equity Partners III, L.P.(d)       North America  06/30/2021   1,715,033 
Madison Dearborn Capital Partners IV, L.P.(d)       North America  12/31/2019   729,608 
Madison Dearborn Capital Partners VI-C, L.P.(d)       North America  03/31/2021   271,446 
Madison International Real Estate Liquidity Fund V(d)       North America  06/30/2015   14,017 
Marlin Equity III, L.P.(d)       North America  06/30/2021   48,658 
Mason Wells Buyout Fund III Limited Partnership(d)       North America  03/31/2021   206,064 
MDP Fund, L.P.(d)       Europe  06/30/2015   203,082 
Merchant Banking Partners IV, L.P.(d)       North America  09/29/2017   22,871 
Montreux Equity Partners IV, L.P.(d)       North America  09/29/2017   407,413 
MPE Partners II, L.P.(d)       North America  06/28/2019   2,676,079 
MSouth Equity Partners II, L.P.(d)       North America  12/31/2019   364,036 
Nautic Partners VI-A, L.P.(d)       North America  12/31/2019   1,248,598 
Navis Asia Fund VI, L.P.(d)       North America  03/31/2021   207,494 
NB SPV, L.P.(d)       North America  09/01/2021   5,000,000 
New Enterprise Associates 12, Limited Partnership(d)       North America  09/29/2017   66,593 
New Mountain Partners III, L.P.(d)       North America  09/29/2017   1,341,763 
NewView Capital Fund I, L.P.(d)       North America  10/31/2018   8,805,263 
North Bridge Growth Equity I, L.P.(d)       North America  12/31/2020   60,999 
North Bridge Growth Equity II, L.P.(d)       North America  12/31/2020   21,093,193 
Oak Investment Partners XII, Limited Partnership(d)       North America  03/31/2019   119,818 
Oaktree Private Investment Fund 2010, L.P.       North America  06/30/2015   63,965 
Paladin III (HR), L.P.(d)       North America  09/29/2017   432,339 
Pamlico Capital III, L.P.       North America  12/31/2019   4,146,901 
Parthenon Investors II, L.P.(d)       North America  12/31/2018   286,895 
Parthenon Investors III, L.P.       North America  12/31/2018   2,930,335 
Permira IV Feeder, L.P.(d)       Europe  04/23/2020   12,554,693 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

4 www.pomonainvestmentfund.com

   

 

Pomona Investment Fund Consolidated Schedule of Investments
  September 30, 2021 (Unaudited)

 

Private Equity Investments (88.67%)(a)(b) (continued)  Shares  Geographic Region(c)  Acquisition Date  Fair Value
Secondary Investments (75.97%) (continued)            
Platinum Equity Capital Partners II(d)       North America  09/29/2017  $171,967 
PRO SPV, L.P.(d)       North America  09/01/2021   4,947,795 
Providence Equity Partners IV, L.P.(d)       North America  12/30/2016   17,961 
Providence Equity Partners V, L.P.(d)       North America  12/30/2016   36,595 
Providence Equity Partners VI, L.P.       North America  12/30/2016   1,716,761 
Providence Equity Partners VII, L.P.       North America  09/29/2017   420,848 
Providence TMT Special Situations Fund, L.P.       North America  12/31/2018   10,843 
RCF V Annex Fund, L.P.(d)       North America  06/30/2021   19,478 
Resource Capital Fund V, L.P.(d)       North America  06/30/2021   50,611 
Riverside Capital Appreciation Fund V, L.P.(d)       North America  03/31/2021   330,427 
Roark Capital Partners II, L.P.(d)       North America  06/29/2018   1,511,028 
Roark Capital Partners III, L.P.(d)       North America  06/29/2018   1,842,303 
Roark Capital Partners IV, L.P.       North America  06/29/2018   1,092,345 
Samson Brunello 2, L.P.(d)       North America  02/19/2021   1,163,060 
Samson Hockey 2, L.P.(d)       North America  12/23/2020   1,738,237 
Samson Shield 2, L.P.       North America  12/23/2020   4,160,014 
Saw Mill Capital Partners, L.P.(d)       North America  09/29/2017   64,946 
Seidler Equity Partners IV, L.P.       North America  06/30/2021   1,570,077 
Silver Lake Partners II, L.P.(d)       North America  12/30/2016   3,501 
Silver Lake Partners III, L.P.(d)       North America  12/31/2018   131,151 
Silver Lake Partners V, L.P.       North America  06/30/2020   3,338,861 
Sixth Cinven Fund (No. 4) Limited Partnership(d)       Europe  06/28/2019   3,433,965 
Sixth Street Opportunities Partners III (B), L.P.       North America  06/30/2015   40,233 
SL SPV-2, L.P.(d)       North America  02/14/2019   1,004,639 
Summit Partners Private Equity Fund VII-A, L.P.(d)       North America  12/31/2018   721,116 
Summit Partners Venture Capital Fund II-A, L.P.(d)       North America  12/31/2018   16,633 
Summit Ventures VI-A, L.P.(d)       North America  12/31/2018   195,745 
Sun Capital Partners IV, L.P.(d)       North America  12/31/2018   307,457 
Sun Capital Partners V, L.P.       North America  12/31/2018   223,926 
SunTx Capital Partners II, L.P.(d)       North America  12/31/2019   2,189,967 
TA Atlantic and Pacific VI, L.P.(d)       North America  03/31/2021   206,356 
TCW/Crescent Mezzanine Partners VB, L.P.       North America  12/30/2015   33,402 
Tennenbaum Opportunities Fund V, LLC       North America  09/29/2017   333,955 
The Veritas Capital Fund III, L.P.(d)       North America  09/29/2017   2,206 
The Veritas Capital Fund V, L.P.(d)       North America  06/28/2019   13,177,981 
Thomas H. Lee Equity Fund VI (2019), L.P.       North America  05/30/2019   – 
Thomas H. Lee Equity Fund VI Liquidating Trust       North America  12/31/2020   1,389 
Thomas H. Lee Parallel (Cayman) Fund VII, L.P.       North America  05/20/2021   2,363,078 
Thomas H. Lee Parallel Fund VI Liquidating Trust       North America  12/31/2020   7,232 
TowerBrook Investors III, L.P.(d)       North America  12/31/2019   36,427 
TPF II-A, L.P.(d)       North America  12/31/2019   67,175 
TPG Growth III (A), L.P.       North America  12/31/2019   3,370,825 
TPG Partners V, L.P.(d)       North America  09/29/2017   7,079 
TPG Partners VI, L.P.       North America  09/29/2017   588,295 
TPG STAR, L.P.       North America  09/29/2017   182,576 
Triton Fund III, L.P.(d)       Europe  03/31/2021   421,042 
Vista Equity Partners Fund V, L.P.(d)       North America  09/28/2018   6,528,073 
Weston Presidio V, L.P.(d)       North America  12/31/2018   204,346 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

Semi-Annual Report | September 30, 2021 5

   

 

Pomona Investment Fund Consolidated Schedule of Investments
  September 30, 2021 (Unaudited)

 

Private Equity Investments (88.67%)(a)(b) (continued)  Shares  Geographic Region(c)  Acquisition Date  Fair Value
Secondary Investments (75.97%) (continued)            
WestView Capital Partners II, L.P.       North America  12/31/2019  $490,176 
White Deer Energy, L.P.(d)       North America  06/30/2021   167,776 
Wicks Communications & Media Partners III, L.P.(d)       North America  12/31/2018   12,720 
Wind Point Partners AAV, L.P.(d)       North America  06/29/2021   908,079 
Wind Point Partners VII-B, L.P.       North America  09/29/2017   428,815 
WP AUSA, L.P.(d)       North America  07/22/2019   8,258,412 
Total Secondary Investments              332,671,087 
                 
Total Private Equity Investments                
(Cost $290,391,309)             $388,297,779 

 

Short-Term Investments (16.95%)  Fair Value  
Money Market Funds (16.95%)   
Fidelity Government Portfolio, Class I, 0.01%(h)   73,403,878 
JP Morgan U.S. Government Money Market Fund, 0.01%(h)   800,313 
      
Total Money Market Funds   74,204,191 
      
Total Short-Term Investments     
(Cost $74,204,191)  $74,204,191 
      
Total Investments (105.62%)     
(Cost $364,595,500)  $462,501,970 
      
Liabilities in Excess of Other Assets (-5.62%)   (24,607,979)
Shareholders' Capital (100.00%)  $437,893,991 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

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Pomona Investment Fund Consolidated Schedule of Investments
  September 30, 2021 (Unaudited)

 

 

(a)Private Equity Investments are generally offered in private placement transactions and as such are illiquid and generally restricted as to resale. Total cost and fair value of illiquid and restricted securities as of September 30, 2021 was $290,391,309 and $388,297,779, respectively.
(b)Pomona Investment Fund ordinarily acquires portfolios of investments that are comprised of interests in multiple private equity funds (rather than single interests in such funds) and pays a single purchase price for each such portfolio. As a result, the specific acquisition cost allocated to each Private Equity Investment does not necessarily reflect the actual cost of each such investment. The information regarding the Private Equity Investments, as listed in the Consolidated Schedule of Investments above, has not been prepared, reviewed or approved by any such Private Equity Fund or any general partner, manager or sponsor of such Private Equity Investments or any of their respective affiliates. As of September 30, 2021, the aggregate cost of each investment restricted to resale was: $2,437,012, $2,797,573, $5,009,015, $988,877, $1,312,177, $–, $675,428, $–, $–, $–, $1,701,729, $–, $3,622,273, $–, $1,756,064, $1,656,333, $388,171, $3,451,393, $2,303,199, $2,221,871, $2,476,484, $3,426,168, $2,036,054, $28,494, $3,718,162, $11,589, $41,815, $1,911,598, $1,627,616, $15,435, $169,786, $2,048,160, $568,769, $20,004, $207,218, $310,154, $585,763, $547,290, $1,653,069, $2,085,219, $3,942, $2,427,892, $126,942, $2,154, $526,972, $202,529, $0, $1,379,913, $1,193,994, $13,523, $822,290, $48,404, $5,516,370, $450,882, $10,143, $4,155,781, $50,157, $49,683, $4,423, $882,239, $595,880, $1,624,184, $541,855, $1,049,254, $1,800,286, $47,747, $9,183,401, $6,040,488, $992,633, $8,502,508, $444,287, $157,202, $203,464, $209,397, $310,839, $688,460, $316,546, $338,933, $3,598,836, $1,579,392, $616,478, $470,461, $1,990,193, $1,000,918, $133,659, $1,192,677, $1,810,701, $117,100, $24,396, $22,185, $958,980, $1,206,393, $117,196, $365,162, $2,114,607, $838,519, $1,714,067, $1,259,664, $27,528, $2,048, $2,855,602, $6,553,187, $2,604,567, $1,747,417, $337,808, $201,423, $1,986,873, $2,306,773, $80,597, $261,086, $208,762, $1,232,707, $2,046,120, $1,831,013, $433,718, $89,466, $1,702,862, $72,969, $311,000, $7,870,376, $671,174, $968,069, $79,100, $–, $478,775, $3,373,114, $157,636, $820,510, $5,599,534, $1,752,543, $1,358,850, $522,614, $577,528, $224,400, $715,294, $44,550, $44,531, $966,960, $1,655,999, $169,083, $2,154,849, $453, $2,690, $1,444,700, $197,690, $187,541, $2,507,601, $496,027, $487,022, $2,128,308, $3,270,328, $10,272, $2,011,877, $740,734, $373,954, $308,195, $24,472, $29,533, $233,687, $1,878,845, $–, $352,649, $1,877,554, $1,364,746, $756,218, $292,985, $5,000,000, $126,737, $1,221,458, $3,851,655, $115,171, $10,120,101, $171,384, $45,196, $5,019, $1,923,722, $229,507, $525,100, $3,999,937, $318,887, $5,000,000, $19,151, $367,900, $4,633,677, $268,096, $5,693, $6,023, $14,852, $152,660, $851,069, $969,561, $849,020, $895,790, $1,190,228, $4,006,937, $675,116, $2,057,705, $1,415,896, $890,415, $1,947,038, $1,998,246, $27,879, $491,797, $710,259, $42,431, $309,279, $288,355, $498,522, $1,097,436, $74,308, $223,457, $217,620, $364,685, $6,381,108, $–, $–, $2,165,783, $–, $267,492, $19,744, $2,277,714, $325,255, $1,789,958, $515,409, $324,593, $5,280,250, $23,454, $536,421, $66,690, $123,227, $920,696, $329,301 and $4,895,000, respectively, totaling, $290,391,309.
(c)In the case of Private Equity Investments, geographic region generally refers to where the general partner is headquartered and may be different from where a Private Equity Investment invests or operates. (d) Non-income producing security.
(e)Valued using significant unobservable inputs.
(h)The rate shown is the annualized 7-day yield as of September 30, 2021.

 

The information regarding the Private Equity Investments, as presented above, has not been prepared, reviewed or approved by any such Private Equity Fund or any general partner, manager or sponsor of such Private Equity Investments or any of their respective affiliates.

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

Semi-Annual Report | September 30, 2021 7

   

 

Pomona Investment Fund Consolidated Statement of Assets and Liabilities
  September 30, 2021 (Unaudited)

 

ASSETS:   
Private Equity Investments, at fair value (Cost, $290,391,309)  $388,297,779 
Short-Term Investments, at fair value (Cost, $74,204,191)   74,204,191 
Cash   2,634,120 
Distributions from Private Equity Investments receivable   625,906 
Deferred financing costs   102,632 
Other assets   195,036 
Total Assets   466,059,664 
      
LIABILITIES:     
Loan payable   15,414,696 
Redemptions payable   5,081,088 
Payable for investments purchased, not yet settled   4,397,221 
Management fees payable   1,833,074 
Distribution and servicing fee payable   288,340 
Professional fees payable   287,832 
Administration fee payable   277,738 
Other accrued expenses   275,792 
Commitment and interest fees payable   251,790 
Expense recoupment payable   58,102 
Total Liabilities   28,165,673 
Commitments and contingencies (see Note 9 and 10)     
Shareholders' Capital  $437,893,991 
      
Shareholders' Capital     
Paid-in capital  $274,602,654 
Total distributable earnings   163,291,337 
Shareholders' Capital  $437,893,991 
      
Shareholders' Capital Attributable to:     
Class A Shares  $227,308,159 
Class M2 Shares   1,185,227 
Class I Shares   209,400,605 
    437,893,991 
      
Shares Outstanding:     
Class A Shares   14,248,904 
Class M2 Shares   71,831 
Class I Shares   12,691,189 
    27,011,924 
      
Net asset value per share:     
Class A Shares  $15.95 
Class M2 Shares  $16.50 
Class I Shares  $16.50 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

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Pomona Investment Fund Consolidated Statement of Operations
  For the Six Months Ended September 30, 2021 (Unaudited)

 

Income   
Dividend Income  $1,079,439 
Interest income   594,184 
Other income   706,027 
Total Income   2,379,650 
      
Expenses     
Management fees   3,451,646 
Sub-Administration fees   614,911 
Distribution and servicing fee   586,999 
Administration fee   522,977 
Professional fees   501,611 
Commitment and interest fees   443,693 
Transfer agent fees   110,786 
Other expenses   387,691 
Total expenses   6,620,314 
Less: Waiver and/or expense reimbursements   (216,287)
Net Expenses   6,404,027 
Net Investment Loss   (4,024,377)
      

Net Realized Gain and Change in Unrealized Appreciation/(Depreciation) on Private Equity Investments

and Foreign Currency Translations

     
Net realized gain from investments in Securities   34,659,159 
Net realized loss on foreign currency translation   (24,540)
Total net realized gain from Private Equity Investments and foreign currency translation   34,634,619 
      
Net change in unrealized appreciation/(depreciation) on Private Equity Investments   40,414,839 
Net change in unrealized appreciation/(depreciation) on foreign currency translation   167,226 
      

Net Realized Gain and Change in Unrealized Appreciation/(Depreciation) on Private Equity Investments and Foreign Currency Translation

   75,216,684 
Net Increase in Shareholders' Capital from operations  $71,192,307 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

Semi-Annual Report | September 30, 2021 9

   

 

Pomona Investment Fund Consolidated Statements of
Changes in Shareholders' Capital

 

   For the Six
Months Ended September 30, 2021  (Unaudited)		  For the Year Ended March 31, 2021
Operations      
Net investment loss  $(4,024,377)  $(1,911,953)
Net realized gain from Private Equity Investments and foreign currency translation   34,634,619    32,011,620 
Net change in unrealized appreciation/(depreciation) on from Private Equity Investments and foreign currency translation   40,582,065    82,006,745 
Net increase in Shareholders' Capital from operations   71,192,307    112,106,412 
           
Distributions to Shareholders          
Capital gains:          
Class A Shares   –    (4,194,854)
Class M2 Shares   –    (258,495)
Class I Shares   –    (3,380,302)
Return of capital:          
Class A shares   –    4,154,285 
Class M2 shares   –    256,307 
Class I shares   –    3,356,586 
Decrease in Shareholders' Capital from distributions to Shareholders   –    (15,600,829)
           
Shareholders' Capital Transactions          
Class A Shares          
Proceeds from sale of Shares   22,033,895    18,144,365 
Reinvestment of distributions   –    7,836,112 
Exchange of Shares   –    (604,160)
Repurchase of Shares   (342,196)   (2,643,240)
Total Class A Transactions   21,691,699    22,733,077 
Class M2 Shares          
Reinvestment of distributions   –    478,338 
Exchange of Shares   –    – 
Repurchase of Shares   (8,160,126)   (2,005,796)
Total Class M2 Transactions   (8,160,126)   (1,527,458)
Class I Shares          
Proceeds from sale of Shares   33,351,208    32,497,025 
Reinvestment of distributions   –    4,476,855 
Exchange of Shares   –    604,285 
Repurchase of Shares   (9,450,799)   (2,546,794)
Total Class I Transactions   23,900,409    35,031,371 
           
Increase in Shareholders' Capital from capital transactions   37,431,982    56,236,990 
           
Shareholders' Capital          
Beginning of year   329,269,702    176,527,129 
End of period  $437,893,991   $329,269,702 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

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Pomona Investment Fund Consolidated Statements of
Changes in Shareholders' Capital

 

   For the Six Months Ended September 30, 2021
(Unaudited)		  For the Year Ended March 31, 2021
Shareholder Activity      
Class A Shares outstanding at beginning of period   12,707,148    10,556,002 
Shares sold   1,564,102    1,695,627 
Shares reinvested   –    743,859 
Shares exchanged   –    (58,477)
Shares redeemed   (22,346)   (229,863)
Class A Shares outstanding at end of period   14,248,904    12,707,148 
           
Class M2 Shares outstanding at beginning of period   594,199    720,645 
Shares reinvested   –    44,143 
Shares exchanged   –    – 
Shares redeemed   (522,368)   (170,589)
Class M2 Shares outstanding at end of period   71,831    594,199 
           
Class I Shares outstanding at beginning of period   11,012,003    7,832,144 
Shares sold   2,290,567    2,916,588 
Shares reinvested   –    413,162 
Shares exchanged   –    57,050 
Shares redeemed   (611,381)   (206,941)
Class I Shares outstanding at end of period   12,691,189    11,012,003 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

Semi-Annual Report | September 30, 2021 11

   

 

Pomona Investment Fund Consolidated Statement of Cash Flows
  For the Six Months Ended September 30, 2021 (Unaudited)

 

Cash flows from operating activities   
Net increase in Shareholders' Capital from operations  $71,192,307 
Adjustments to reconcile net increase in Shareholders' Capital from operations to net cash used in operating activities:     
Purchases of Private Equity Investments   (67,029,688)
Capital distributions received from Private Equity Investments   54,743,560 
Net realized gain from Private Equity Investments   (34,659,159)
Net change in unrealized appreciation on Private Equity Investments and foreign currency translation   (40,582,065)
Amortization of deferred offering cost   20,100 
Amortization of deferred financing costs   11,404 
Changes in operating assets and liabilities:     
Decrease in expense waiver receivable   169,813 
Decrease in prepaid insurance   129,200 
Increase in deferred financing costs   (3,701)
Decrease in investments in Private Equity Investments paid in advance   18,691 
Decrease in deferred offering costs   16,816 
Increase in other assets   (145,331)
Increase in distributions from Private Equity Investments receivable   (625,906)
Increase in management fees payable   518,396 
Increase in payable for investments purchased, not yet settled   3,351,067 
Decrease in distribution and servicing fee payable   (111,880)
Increase in professional fees payable   29,055 
Increase in administration fee payable   78,544 
Increase in commitment and interest fees payable   106,931 
Increase in expense recoupment payable   58,102 
Decrease in other accrued expenses   (247,650)
Net cash used in operating activities   (12,961,396)
      
Cash flows from financing activities     
Proceeds from sale of Shares   55,385,103 
Repurchases of Shares   (14,131,642)
Additions to offering costs   (45,635)
Additions to financing costs   (13,175)
Gross borrowings   4,121,769 
Payments on borrowings   (474,280)
Net cash provided by financing activities   44,842,140 
      
Net change in cash   31,880,745 
      
Cash and cash equivalents at beginning of period  $44,957,566 
      
Cash and cash equivalents at end of period  $76,838,311 
      
Supplemental disclosure of operating activity     
Supplemental disclosure of interest payments  $201,995 
      
Supplemental disclosure of cash and cash equivalents     
Cash and cash equivalents at beginning of period:     
Cash  $4,654,642 
Short-term investments   40,302,924 
      
Cash and cash equivalents at end of period:     
Cash  $2,634,120 
Short-term investments   74,204,191 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

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Pomona Investment Fund Consolidated Financial Highlights
  For a Share Outstanding Throughout the Periods Presented

 

   Class A Shares
   For the Six Months Ended September 30, 2021
(Unaudited)		  For the Year Ended March 31, 2021(a)  For the Year Ended March 31, 2020(a)  For the Year Ended March 31, 2019(a)  For the Year Ended March 31, 2018(a)  For the Year Ended March 31, 2017(a)
Net asset value - beginning of period  $13.34   $9.14   $10.20   $10.44   $10.09   $10.20 
Net increase in Shareholders' Capital from operations:                              
Net investment loss   (0.17)   (0.11)   (0.15)   (0.15)   (0.04)   (0.09)
Net realized and unrealized gain on Private Equity Investments and foreign currency translation   2.78    5.07    0.40    1.16    1.34    1.03 
Net increase in Shareholders’ capital from operations:   2.61    4.96    0.25    1.01    1.30    0.94 
Distributions from capital gains   –    (0.38)   (1.31)   (1.25)   (0.95)   (1.05)
Distributions from return of capital   –    (0.38)   –    –    –    – 
Total distributions   –    (0.76)   (1.31)   (1.25)   (0.95)   (1.05)
Net asset value per Share, end of period  $15.95   $13.34   $9.14   $10.20   $10.44   $10.09 
Total Return(b)   19.57%(c)   56.54%   1.99%   9.79%   13.34%   9.71%
Ratios/Supplemental Data:                              
Shareholders' Capital, end of period (in thousands)  $227,308   $169,545   $96,479   $94,109   $80,983   $63,225 
Ratio of net investment loss to average Shareholders' Capital   (2.38)(d)   (1.09%)   (1.45%)   (1.51%)   (0.59%)   (1.07%)
Ratio of gross expenses to average Shareholders' Capital(e)   3.73%(d)   3.80%   4.03%   4.19%   3.85%   4.05%
Ratio of expense waiver to average Shareholders' Capital   (0.11)%(d)   (0.31%)   (0.48%)   (0.50%)   (0.71%)   (0.87%)
Ratio of net expenses to average Shareholders' Capital(f)(g)   3.62%(d)   3.49%   3.55%   3.69%   3.14%   3.18%
Portfolio turnover rate   0.00%   0.00%   0.07%   0.00%   0.00%   0.00%

 

(a) The information for the fiscal year ended March 31, 2021 and prior periods has been audited by the predecessor independent registered public accounting firm.
(b) Total Return based on net asset value per Share is the combination of changes in net asset value per Share and reinvested dividend income at net asset value per Share, if any.
(c) Not annualized.
(d) Annualized.
(e) Represents the ratio of expenses to average Shareholders’ Capital absent fee waivers and/or expense reimbursement by the Adviser.
(f) The Adviser has entered into an Expense Limitation and Reimbursement Agreement with the Fund for a one-year term ending at the end of the Limitation Period to limit the amount of the Fund’s total annual ordinary operating expenses, excluding certain “Specified Expenses” as outlined in the Notes to Consolidated Financial Statements.
(g) Includes expenses excluded from the expense limitation. In addition, the ratio is calculated based on net expenses and average net assets. If the net expense ratio calculation was calculated quarterly rather than annualized, as is done for expense waiver calculations which is not, however, calculated based on average net assets, the net expense ratio would be 2.95%.

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

Semi-Annual Report | September 30, 2021 13

   

 

Pomona Investment Fund Consolidated Financial Highlights
  For a Share Outstanding Throughout the Periods Presented

 

   Class M2 Shares
   For the Six Months Ended September 30, 2021
(Unaudited)		  For the Year Ended March 31, 2021(a)  For the Year Ended March 31, 2020(a)  For the Year Ended March 31, 2019(a)  For the Year Ended March 31, 2018(a)  For the Period October 1, 2016 (Commencement of Operations) to March 31, 2017(a)
Net asset value - beginning of period  $13.76   $9.36   $10.36   $10.54   $10.11   $10.65(b)
Net increase in shareholders' Capital from operations:                              
Net investment loss   (0.13)   (0.07)   (0.26)   (0.11)   (0.02)   (0.01)(c)
Net realized and unrealized gain on Private Equity Investments and foreign currency translation   2.87    5.23    0.57    1.18    1.40    0.52 
Net increase in Shareholders’ capital from
operations:		   2.74    5.16    0.31    1.07    1.38    0.51 
Distributions from capital gains   –    (0.38)   (1.31)   (1.25)   (0.95)   (1.05)
Distributions from return of capital   –    (0.38)   –    –    –    – 
Total distributions   –    (0.76)   (1.31)   (1.25)   (0.95)   (1.05)
Net asset value per Share, end of period  $16.50   $13.76   $9.36   $10.36   $10.54   $10.11 
Total Return(d)   19.90%(e)   57.37%   2.54%   10.40%   13.97%   5.32%(e)
Ratios/Supplemental Data:(f)                              
Shareholders' Capital, end of period (in thousands)  $1,185   $8,177   $6,745   $908   $830   $276 
Ratio of net investment loss to average Shareholders' Capital   (2.53)%(g)   (0.56%)   (1.19%)   (0.94%)   0.01%   (0.24%)(g)
Ratio of gross expenses to average Shareholders' Capital(h)   3.78%(g)   3.42%   3.95%   4.30%   4.51%   5.18%(g)
Ratio of expense waiver to average Shareholders' Capital(i)   (0.33)%(g)   (0.49%)   (0.79%)   (1.18%)   (1.83%)   (2.74%)(g)
Ratio of net expenses to average Shareholders' Capital(i)(j)   3.45%(g)   2.93%   3.16%   3.12%   2.68%   2.44%(g)
Portfolio turnover rate   0.00%   0.00%   0.07%   0.00%   0.00%   0.00%

 

(a)The information for the fiscal year ended March 31, 2021 and prior periods has been audited by the predecessor independent registered public accounting firm.
(b)The net asset value per Share as of the beginning of the period, October 1, 2016 (Commencement of Operations) represents the initial net asset value per Share of $10.65.
(c)Per Share data of income/(loss) from investment operations is computed using the total income and expense for this year divided by end of year Shares.
(d)Total Return based on net asset value per Share is the combination of changes in net asset value per Share and reinvested dividend income at net asset value per Share, if any.
(e)Not annualized.
(f)Class M2 Shares commenced operations on October 1, 2016. These ratios include certain expenses related to the offering of this share class and other expenses associated with the commencement of operations that are specific only to the M2 share class.
(g)Annualized.
(h)Represents the ratio of expenses to average Shareholders’ Capital absent fee waivers and/or expense reimbursement by the Adviser.
(i)The Adviser has entered into an Expense Limitation and Reimbursement Agreement with the Fund for a one-year term ending at the end of the Limitation Period to limit the amount of the Fund’s total annual ordinary operating expenses, excluding certain “Specified Expenses” as outlined in the Notes to Consolidated Financial Statements.
(j)Includes expenses excluded from the expense limitation. In addition, the ratio is calculated based on net expenses and average net assets. If the net expense ratio calculation was calculated quarterly rather than annualized, as is done for expense waiver calculations which is not, however, calculated based on average net assets, the net expense ratio would be 2.40%.

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

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Pomona Investment Fund Consolidated Financial Highlights
  For a Share Outstanding Throughout the Periods Presented

 

 

   Class I Shares
   For the Six
Months Ended
September 30, 2021
(Unaudited)		  For the Year Ended March 31, 2021(a)  For the Year Ended March 31, 2020(a)  For the Period April 1, 2018 (Commencement of Operations) to Year Ended March 31, 2019(a)
Net asset value - beginning of period  $13.76   $9.36   $10.36   $10.54(b)
Net increase in shareholders' Capital from operations:                    
Net investment loss   (0.13)   (0.05)   (0.08)   (0.07)(c)
Net realized and unrealized gain on Private Equity Investments and foreign currency translation   2.87    5.21    0.39    1.14 
Net increase in Shareholders’ capital from operations:   2.74    5.16    0.31    1.07 
Distributions from capital gains   –    (0.38)   (1.31)   (1.25)
Distributions from return of capital   –    (0.38)   –    – 
Total distributions   –    (0.76)   (1.31)   (1.25)
Net asset value per Share, end of period  $16.50   $13.76   $9.36   $10.36 
Total Return(d)   19.90%(e)   57.38%   2.54%   10.40%(e)
Ratios/Supplemental Data:(f)                    
Shareholders' Capital, end of period (in thousands)  $209,401   $151,548   $73,303   $31,948 
Ratio of net investment loss to average Shareholders' Capital   (1.81)%(g)   (0.48%)   (1.10%)   (1.24%)(g)
Ratio of gross expenses to average Shareholders' Capital(h)   3.17%(g)   3.23%   3.62%   3.86%(g)
Ratio of expense waiver to average Shareholders' Capital(i)   (0.11)%(g)   (0.31%)   (0.53%)   (0.66%)(g)
Ratio of net expenses to average Shareholders' Capital(i)(j)   3.06%(g)   2.92%   3.09%   3.20%(g)
Portfolio turnover rate   0.00%   0.00%   0.07%   0.00%

 

(a)The information for the fiscal year ended March 31, 2021 and prior periods has been audited by the predecessor independent registered public accounting firm.
(b)The net asset value per share as of the beginning of the period, April 1, 2018 (Commencement of Operations) represents the initial net asset value per Share of $10.54.
(c)Per Share data of income/(loss) from investment operations is computer using the total income and expense for this year divided by end of year Shares.
(d)Total return assumes a subscription of a Share in the class at the beginning of the period indicated and a repurchase of a Share on the last day of the period, and assumes reinvestment of all distributions during the period when owning Shares of the class. Total return is not annualized for periods less than twelve months.
(e)Not annualized.
(f)Class I Shares commenced operations on April 1, 2018. These ratios include certain expenses related to the offering of this share class and other expenses associated with the commencement of operations that are specific only to the I share class.
(g)Annualized.
(h)Represents the ratio of expenses to average Shareholders’ Capital absent fee waivers and/or expense reimbursement by the Adviser.
(i)The Adviser has entered into an Expense Limitation and Reimbursement Agreement with the Fund for a one-year term ending at the end of the Limitation Period to limit the amount of the Fund’s total annual ordinary operating expenses, excluding certain “Specified Expenses” as outlined in the Notes to Consolidated Financial Statements.
(j)Includes expenses excluded from the expense limitation. In addition, the ratio is calculated based on net expenses and average net assets. If the net expense ratio calculation was calculated quarterly rather than annualized, as is done for expense waiver calculations which is not, however, calculated based on average net assets, the net expense ratio would be 2.95%.

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

Semi-Annual Report | September 30, 2021 15

   

 

Pomona Investment Fund Consolidated Notes to Financial Statements
  September 30, 2021 (Unaudited)

 

1.  ORGANIZATION

 

 

Pomona Investment Fund (the “Fund”) was organized as a Delaware statutory trust on August 12, 2014 and commenced operations on May 7, 2015. The Fund is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified, closed-end management investment company. The Fund is managed by Pomona Management LLC (the “Adviser” and the “Administrator”), an investment adviser registered under the Investment Advisers Act of 1940, as amended. The Fund seeks long-term capital appreciation by investing principally in private equity investments (“Private Equity Investments”). On August 3, 2017, in connection with the Fund’s revolving credit facility, Pomona Investment Fund LLC was organized as a Delaware limited liability company and is a wholly owned subsidiary of the Fund.

 

It is anticipated that the Fund’s Private Equity Investments will predominantly consist of secondary and primary investments in private equity and other private asset funds (“Investment Funds”) and, to a lesser degree, direct investments in operating companies. Co-investments refer to direct investments in an operating company by the Fund alongside other investors, often one or more Investment Funds. Primary investments refer to investments in newly established private equity funds, typically sponsored by investment managers with an established investment track record. Seasoned primary investments, or seasoned primaries, refer to primary investments made after an Investment Fund has already invested a certain percentage of its capital commitments. Secondary investments refer to investments in existing Investment Funds that are typically acquired in privately negotiated transactions.

 

A board of trustees (the “Board”) has overall responsibility for the management and supervision of the business operations of the Fund. As permitted by applicable law, the Board may delegate any of its rights, powers and authority to, among others, the officers of the Fund, any committee of the Board, or the Adviser.

 

As of September 30, 2021, the Fund offered three classes of shares; Classes A, I, and M2 shares. All shares are continuously offered on a quarterly basis.

 

Class A Shares are offered at the then-current net asset value plus an initial sales charge, if applicable, with a general minimum initial investment of $25,000. Class A Shareholders pay a fee for distribution and shareholder servicing.

 

Class I Shares are offered to certain institutional investors, at the then-current net asset value without an initial sales charge and with a general minimum initial investment of $1,000,000. Class I Shareholders do not pay a fee for distribution or shareholder servicing.

 

Class M2 Shares are offered through intermediary wealth management platforms associated with private banks and trust companies, at the then-current net asset value without an initial sales charge. The general minimum initial investment is $5,000,000. Class M2 Shareholders do not pay a fee for distribution services.

 

Certain investors may purchase less than the minimum investment for Class I and Class M2 Shares (noted above) pursuant to a Letter of Intent, which is further described in the Fund’s prospectus.

 

All share classes have the same rights and privileges, and have ownership in the same underlying investment portfolio.

 

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

 

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Fund is considered an investment company and therefore applies the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies”. The following is a summary of significant accounting policies used in preparing the consolidated financial statements.

 

Consolidation of a Subsidiary

The consolidated financial statements of the Fund include Pomona Investment Fund LLC, a wholly owned-subsidiary of the Fund, all inter-company accounts and transactions have been eliminated.

 

Valuation of Investments

The Fund follows the provisions of Fair Value Measurement set forth in ASC Topic 820 (“ASC 820”). The Fund has formal valuation policies and procedures (the “Valuation Procedures”), which have been approved by the Board. The Board has delegated direct and oversight responsibilities for making valuation determinations for investments held by the Fund to a valuation committee (the “Valuation Committee”), which draws on the resources and personnel of the Administrator and the Adviser in carrying out its responsibilities. The Board receives valuation reports from the Valuation Committee on a quarterly basis and determines if the Valuation Procedures are operating as expected and the outcomes are reliable.

 

 

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Pomona Investment Fund Consolidated Notes to Financial Statements
  September 30, 2021 (Unaudited)

 

All investments are recorded at “Fair Value” in good faith. Fair value is based on actual or estimated market value, with special provisions for assets not having readily available market quotations, and for situations in which market quotations are deemed unreliable. The Private Equity Investments that the Fund makes normally do not have readily available market prices. Determining the fair value of Private Equity Investments and other assets requires that judgment be applied to the specific facts and circumstances of each asset while seeking to employ a valuation process that is consistently followed. There is not necessarily a single standard for determining fair value of such assets, and determinations of fair value may involve subjective judgments and estimates.

 

The fair values of the Fund’s Private Equity Investments are estimates and are determined by the Adviser in accordance with the Valuation Procedures. If applicable, these estimates are net of management and performance incentive fees or allocations payable pursuant to the respective organizational documents of each Private Equity Investment. Ordinarily, the fair value of a Private Equity Investment held by the Fund is based on the net asset value (“NAV”) of that Private Equity Investment reported by its investment manager. If the Adviser determines that the most recent NAV reported by the investment manager of a Private Equity Investment does not represent the fair value or if the investment manager of a Private Equity Investment fails to report a NAV to the Fund, a fair value determination is made by the Adviser in accordance with the Valuation Procedures. This includes adjusting the previous NAV provided by an investment manager with other relevant information available at the time the Fund values its portfolio, including capital activity and material events occurring between the reference dates of the investment manager’s valuation and the relevant valuation date.

 

For investments that do not have readily determinable fair values and for which it is not possible to use NAV as a practical expedient, such as certain Direct Investments/Co-Investments, the Administrator will review and value such investments using one or more of the following types of analyses:

 

•Market comparable statistics and public trading multiples discounted for illiquidity, minority ownership and/or other factors for investments with similar characteristics.
•Discounted cash flow analysis, including a terminal value or exit multiple.
•The cost of the investment, if the cost is determined to best approximate the fair value of the investment.
•Valuations implied by third-party investment in similar assets or issuers.

 

Cash and Short-term Investments

The Fund holds cash and investments in short-term interest bearing deposit accounts. At times, such deposits may be in excess of federally insured limits. The Fund has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such accounts. There are no restrictions on the cash and short-term investments held by the Fund. Short-term investments are considered cash equivalents.

 

Realized Gain/(Loss) on Investments, Interest Income, and Dividend Income

The Fund accounts for realized gains and losses, interest income, and dividend income on distributions received from Private Equity Investments based on the nature of such distributions as determined by each underlying investment manager.

 

Other Income from Private Equity Investments

The Fund accounts for other income on distributions received from Private Equity Investments based on the nature of such distributions as determined by the underlying investment fund managers. For the six months ended September 30, 2021, the Fund earned other income of $706,027.

 

Income Recognition and Expenses

Income is recognized on an accrual basis as earned. Expenses are recognized on an accrual basis as incurred.

 

The Fund bears all expenses incurred in the course of its operations, including, but not limited to, the following: all costs and expenses related to portfolio transactions and positions for the Fund’s account; professional fees; costs of insurance; registration expenses; and expenses of meetings of the Board. Certain expenses of the Fund attributable to a particular share class will be allocated to the share class to which they are attributable.

 

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Fund’s Administrator to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Changes in the economic environment, financial markets, and any other factors or parameters used in determining these estimates could cause actual results to differ materially.

 

 

Semi-Annual Report | September 30, 2021 17

   

 

Pomona Investment Fund Consolidated Notes to Financial Statements
  September 30, 2021 (Unaudited)

 

3.  FAIR VALUE DISCLOSURES

 

 

In accordance with ASC 820, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based on unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurement). The guidance establishes three levels of fair value as listed below.

 

Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access at the measurement date

 

Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, including inputs in markets that are not considered to be active

 

Level 3 – Significant unobservable inputs

 

The notion of unobservable inputs is intended to allow for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Under Level 3, the owner of an asset must determine fair value based on its own assumptions about what market participants would take into account in determining the fair value of the asset, using the best information available.

 

The inputs or methodology for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement; however, the determination of what constitutes “observable” requires significant judgment by the Administrator. The Administrator considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The Fund’s Private Equity Investments are generally restricted securities that are subject to substantial holding periods and restrictions on resale and are not traded in public markets. Accordingly, the Fund may not be able to resell such investments for extended periods, if at all.

 

The following table is a summary of information about the levels within the fair value hierarchy at which the Fund’s investments are measured as of September 30, 2021:

 

Investments in Securities at Value  Level 1 - Unadjusted Quoted Prices  Level 2 - Other Significant Observable Inputs  Level 3 - Significant Unobservable Inputs  Total
Secondary Investments  $–   $–   $4,222,489   $4,222,489 
Short-Term Investments  $74,204,191   $–   $–   $74,204,191 
TOTAL  $74,204,191   $–   $4,222,489   $78,426,680 

 

As the Fund uses the NAV as a practical expedient to determine the fair value of certain Private Equity Investments, these investments have not been classified in the U.S. GAAP fair value hierarchy. As of September 30, 2021, $384,075,290 was fair valued in accordance with ASU 2015-07, utilizing NAV as a practical expedient.

 

During the six months ended September 30, 2021, the Fund did not have any transfers between any of the levels of the fair value hierarchy. The Fund records all transfers at the end of each reporting period.

 

 

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Pomona Investment Fund Consolidated Notes to Financial Statements
  September 30, 2021 (Unaudited)

 

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining value:

Asset Type  Balance as of March 31, 2021  Realized Gain/ (Loss)  Change in Unrealized Appreciation/ Depreciation  Purchases  Sales Proceeds  Transfer into Level 3  Transfer Out of Level 3  Balance as of September 30, 2021  Net change in unrealized appreciation/(depreci ation) included in the Statements of Operations attributable to Level 3 investments held at September 30, 2021
Secondary Investments  $3,149,141   $—   $1,073,348   $—   $—   $—   $—   $4,222,489   $1,073,348 
   $3,149,141   $—   $1,073,348   $—   $—   $—   $—   $4,222,489   $1,073,348 

 

The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021:

 

Fair Value September 30, 2021 Valuation Methodologies Unobservable Input Input Range
$4,222,489 Market comparable companies Enterprise value to EBITDA multiple 8.5x - 14.7x

 

A listing of the private equity investment types held by the Fund and the related attributes, as of September 30, 2021, are shown in the table below:

 

Investment Category   Investment Strategy   Fair Value   Unfunded Commitments   Redemption Frequency*   Notice Period (In Days)   Redemption Restrictions Terms**
Direct Investments/ Co-Investments   Investments in an operating company alongside other investors   $ 18,825,825   $ 5,023,303   None   N/A   Liquidity in the form of distributions from Private Equity Investments
Primary   Investments in newly established private equity funds   14,892,646   50,622,116   None   N/A   Liquidity in the form of distributions from Private Equity Investments
Seasoned Primary   Primary investments made after an Investment Fund has already invested a certain percentage of its capital commitment   21,908,221   7,622,179   None   N/A   Liquidity in the form of distributions from Private Equity Investments
Secondary   Investments in existing Private Equity Investments that are typically acquired in privately negotiated transactions   332,671,087   54,133,367   None   N/A   Liquidity in the form of distributions from Private Equity Investments

 

*The information summarized in the table above represents the general terms for the specified investment type. Individual Private Equity Investments may have terms that are more or less restrictive than those terms indicated for the investment type as a whole. In addition, most Private Equity Investments have the flexibility, as provided for in their constituent documents, to modify and waive such terms.
**Distributions from Private Equity Investments occur at irregular intervals, and the exact timing of distributions from Private Equity Investments cannot be determined. It is estimated that distributions will occur over the life of the Private Equity Investments.

 

The fair value relating to certain underlying investments of these Private Equity Investments, for which there is no readily available market, has been estimated by the respective Private Equity Investment’s management and is based upon available information in the absence of readily ascertainable fair values and does not necessarily represent amounts that might ultimately be realized. Due to the inherent uncertainty of valuation, those estimated fair values may differ significantly from the values that would have been used had a readily available market for the investments existed. These differences could be material.

 

 

Semi-Annual Report | September 30, 2021 19

   

 

Pomona Investment Fund Consolidated Notes to Financial Statements
  September 30, 2021 (Unaudited)

 

4.  MANAGEMENT FEE, ADMINISTRATION FEE, RELATED PARTY TRANSACTIONS AND OTHER

 

 

The Adviser provides certain management and advisory services to the Fund, including allocating the Fund’s assets and monitoring each Private Equity Investment to determine whether its investment program is consistent with the Fund’s investment objective and whether its investment performance and other criteria are satisfactory. In consideration for these services, the Fund pays the Adviser a quarterly management fee of 0.4125% (1.65% on an annualized basis) of the Fund’s quarter-end Shareholders’ Capital (before any repurchases of Shares) (the “Management Fee”). For the six months ended September 30, 2021, the Fund incurred a Management Fee of $3,451,646.

 

The Administrator performs certain administrative, accounting and other services for the Fund, including (i) providing and/ or arranging and overseeing the provision of office space, adequate personnel, and communications and other facilities necessary for administration of the Fund, (ii) performing certain administrative functions to support the Fund and its service providers, (iii) supporting the Board and providing it with information, (iv) providing accounting and legal services in support of the Fund, (v) providing compliance testing services, (vi) analyzing the value of the Fund’s assets, and (vii) reviewing and arranging for payment of the Fund’s expenses and other support services. In consideration of these services, the Fund pays the Administrator a quarterly fee of 0.0625% (0.25% on an annualized basis) of the Fund’s quarter-end Shareholders’ Capital (before any repurchase of Shares) (the “Administration Fee”). For the six months ended September 30, 2021, the Fund incurred an Administration Fee of $522,977.

 

The Adviser has entered into an expense limitation agreement (the “Expense Limitation and Reimbursement Agreement”) with the Fund that has been extended through September 30, 2022 (the “Limitation Period”) to limit the amount of the Fund’s aggregate quarterly ordinary operating expenses, excluding certain specified expenses listed below (“Specified Expenses”), borne by the Fund during the Limitation Period, to an amount not to exceed 0.50% on an annualized basis of the Fund’s quarter-end net assets (the “Expense Cap”). Specified Expenses include: (i) the Management Fee; (ii) all fees and expenses of Private Equity Investments and direct investments in which the Fund invests (including all acquired fund fees and expenses); (iii) transactional costs, including legal costs and brokerage commissions, associated with the acquisition and disposition of secondaries, primaries, direct investments, ETFs, and other investments; (iv) interest payments incurred on borrowing by the Fund; (v) fees and expenses incurred in connection with any credit facility, if any, obtained by the Fund; (vi) the administration fee; (vii) the distribution and servicing fee or shareholder servicing fee, as applicable; (viii) taxes; and (ix) extraordinary expenses (expenses resulting from events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence). To the extent that the Fund’s aggregate quarterly ordinary operating expenses, exclusive of the Specified Expenses for any quarter exceed the Expense Cap, the Adviser will waive its fees and/ or reimburse the Fund for expenses to the extent necessary to eliminate such excess. To the extent that the Adviser waives fees or reimburses expenses, it is permitted to recoup any amounts waived and expense amounts previously paid or borne by the Adviser, for a period not to exceed three years from the quarter in which such fees were waived or expenses were borne by the Adviser, even if such reimbursement occurs after the termination of the Limitation Period, provided that the Fund’s aggregate quarterly ordinary operating expenses for the quarter in which such reimbursement is sought, not including Specified Expenses, have fallen to a level below the Expense Cap that was in effect during the quarter in which the fees were waived or expenses were borne by the Adviser.

 

For the six months ended September 30, 2021, the Adviser waived fees in the amount of $216,287, which are subject for recoupment. The Adviser recouped $59,473 of previously waived fees. At September 30, 2021, the amounts outlined below are available for recoupment:

 

Quarter of Expiration:   
December 2021  $166,628 
March 2021   129,326 
June 2021   190,956 
September 2021   180,253 
December 2021   182,129 
March 2021   269,061 
June 2023   301,962 
September 2023   164,351 
December 2023   111,996 
March 2024   169,812 
June 2024   274,390 
September 2024   1,370 

 

Voya Investments Distributor, LLC acts as the distributor of the Shares (the “Distributor”). The Distributor directly distributes Shares to investors and may also enter into selected dealer agreements with various brokers and dealers (“Selling Agents”) that have agreed to participate in the distribution of the Fund’s Shares. The Fund pays the Distributor a quarterly fee of 0.1375% (0.55% on an annualized basis) of the Fund’s Shareholders’ Capital attributable to Class A shares as of each quarter- end, determined as of the last day of each quarter (before any repurchases of Shares) (the “Distribution and Servicing Fee”), for distribution and investor services provided to Class A shareholders. The Distribution and Servicing Fee is charged on an aggregate class-wide basis, and shareholders are expected to be subject to the Distribution and Servicing Fee as long as they hold their Class A Shares. The Distributor may, in its sole discretion, pay various Selling Agents some or all of the Distribution and Servicing Fee to compensate such Selling Agents for distribution and servicing support. The Distributor, Adviser, and Administrator are subsidiaries of Voya Financial, Inc. (formerly, ING U.S., Inc.). For the six months ended September 30, 2021, the Fund incurred a Distribution and Servicing Fee of $586,999.

 

 

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Pomona Investment Fund Consolidated Notes to Financial Statements
  September 30, 2021 (Unaudited)

 

SS&C Technologies, Inc. and certain of its affiliates (collectively, “SS&C”) provide certain sub- administrative, sub-accounting, and tax administration services to the Fund based on the Fund’s Service Agreement. For these services, the Fund pays an annual fee to SS&C based upon average net assets, subject to certain minimums.

 

DST Asset Manager Solutions, Inc. serves as the Fund’s transfer agent with respect to maintaining the registry of the Fund’s Shareholders and processing matters relating to subscriptions for, and repurchases of, Shares.

 

Each member of the Board that is not an “interested person” (as defined in the 1940 Act) (an “Independent Trustee”) is paid an annual retainer of $35,000, a fee of $5,000 per year for serving on committees of the Board, and a fee per each regular quarterly meeting of the Board of $2,500, plus reimbursement of reasonable out of pocket expenses.

 

The Fund retained Alaric Compliance Services, LLC to provide compliance services to the Fund, including a Chief Compliance Officer. For the six months ended September 30, 2021, the Fund incurred Chief Compliance Officer fees and expenses in the amount of $45,000.

 

The Fund will continuously incur offering costs so long as it is accepting new investors. These costs enable the Fund to be offered to investors. These offering costs are either (i) expensed by the Fund as incurred or (ii) treated as deferred charges and amortized over the subsequent 12-month period using the straight-line method if such amounts are greater than $10,000. For the six months ended September 30, 2021, the Fund incurred $51,714 of offering costs.

 

Certain shareholders of the Fund (“Affiliated Shareholders”) are affiliated with the Adviser. The aggregate value of the Affiliated Shareholders’ share of shareholders’ capital at September 30, 2021 is $136,998,736.

 

5.  REVOLVING CREDIT AGREEMENT

 

Effective March 30, 2020, the Fund entered into a $40,000,000 revolving credit agreement with Barclays Bank PLC (the “Barclays Facility”). The Barclays Facility has a five year term. Borrowings under the Barclays Facility bears interest at London Interbank Offered Rate (“LIBOR”) or Euro Interbank Offered Rate (“EURIBOR”) plus 2.85% per annum, and has a commitment fee of 0.85% per annum on the daily unused portion. Effective June 3, 2021, the Fund Amended its agreement with Barclays Bank PLC to increase the size of the Barclays Facility to $80,000,000 and extend the term to six years. The Fund entered into the Barclays Facility for working capital requirements, such as financing repurchases of shares, distributions to investors and investments. For the six months ended September 30, 2021, the Fund utilized the facility, borrowed €3,100,000 (net of paydowns and equivalent to $3,647,489), incurred $139,519 in commitment fees and incurred €96,868 (equivalent to $115,313) of interest expense on borrowings at a 2.85% weighted average interest rate. As of September 30, 2021, the Fund had €13,300,000 (equivalent to $15,414,696) of outstanding borrowings on the Barclays Facility.

 

6.  CAPITAL SHARE TRANSACTIONS

 

The Fund accepts initial and additional purchases of Shares as of the first business day of each calendar quarter at the Fund’s then-current Net asset value per Share of each respective share class (determined as of the close of business on the last business day of the immediately preceding quarter). To provide a limited degree of liquidity to Shareholders, the Fund may from time to time offer to repurchase Shares pursuant to written tenders by Shareholders. It is expected that the Adviser will normally recommend to the Board that the Fund conduct an offer to repurchase shares on a quarterly basis as of the end of each calendar quarter, so that each repurchase would occur as of each March 31, June 30, September 30 and December 31 of every year, although the Adviser may not recommend, and the Board may not authorize, a repurchase offer for any quarter in which the Adviser believes that it would be detrimental to the Fund for liquidity or other reasons. It is also expected that the Adviser will recommend to the Board that any such tender offer would be for an amount that is not more than 5% of the Fund’s Shareholders’ Capital. There can be no assurance that the Board will accept the Adviser’s recommendation.

 

7.  FEDERAL AND OTHER TAXES

 

It is the Fund’s intention to meet the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), that are applicable to a regulated investment company (“RIC”). The Fund elected to be a RIC with the filing of its 2015 federal income tax return. The Fund intends to continue to operate so as to qualify to be taxed as a RIC under the Code and, as such, to not be subject to federal income tax on the portion of its taxable income and gains distributed to stockholders. To qualify for RIC tax treatment, among other requirements, the Fund is required to distribute at least 90% of its investment company taxable income, as defined by the Code. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. While the Fund intends to distribute substantially all of its taxable net investment income and capital gains, if any, in a manner necessary to minimize the imposition of a 4% excise tax, there can be no assurance that it will avoid any or all of the excise tax. In such event, the Fund will be liable only for the amount by which it does not meet the foregoing distribution requirements. The Fund has adopted October 31 as its tax year end. The Fund’s open tax years for which the applicable statutes of limitations have not expired are subject to examination by U.S. federal, state and local tax authorities.

 

 

Semi-Annual Report | September 30, 2021 21

   

 

Pomona Investment Fund Consolidated Notes to Financial Statements
  September 30, 2021 (Unaudited)

 

In accounting for income taxes, the Fund follows the guidance in FASB ASC Codification 740, as amended by ASU 2009-06, “Accounting for Uncertainty in Income Taxes” (“ASC 740”). ASC 740 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity before being measured and recognized in the consolidated financial statements. Management has concluded, there were no uncertain tax positions as of March 31, 2021 for federal income tax purposes or in, the Fund’s major state and local tax jurisdictions; Delaware, New York State, and New York City. Management evaluates the tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions will “more-likely-than-not” be sustained upon examination by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold that would result in a tax benefit or expense to the Fund would be recorded as a tax benefit or expense in the current year. The Fund has not recognized any tax liability for unrecognized tax benefits or expenses. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Consolidated Statement of Operations. During the period ended September 30, 2021, the Fund did not incur any interest or penalties.

 

Because U.S. federal income tax regulations differ from U.S. GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the consolidated financial statements to reflect the applicable tax characterization. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. The tax basis components of distributable earnings differ from the amounts reflected in the Consolidated Statement of Assets and Liabilities and Shareholders’ Capital due to temporary book/tax differences arising primarily from partnership investments. These amounts will be finalized before filing the Fund’s federal tax return.

 

At September 30, 2021, the federal tax cost of investment securities and unrealized appreciation (depreciation) as of the period ended were as follows:

 

Cost of investments for tax purposes  $349,863,518 
Gross tax unrealized appreciation   154,692,537 
Gross tax unrealized depreciation   (42,054,085)
Net tax unrealized appreciation (depreciation) on investments   112,638,452 

 

The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences related to the timing of the recognition of income, gains and losses from the underlying investments for tax purposes.

 

As of October 31, 2020, the components of accumulated earnings on a tax basis were as follows:

 

Undistributed ordinary income  $— 
Undistributed long-term capital gains   — 
Tax accumulated earnings   — 
Accumulated capital and other losses   (4,496,324)
Unrealized appreciation   44,297,765 
Other differences   — 
Distributable net earnings  $39,801,441 

 

As of October 31, 2020, the Fund had no capital loss carryforwards.

 

As of October 31, 2020, the Fund had $4,496,324 of qualified late-year ordinary losses, which are deferred until the following tax year ended October 31, 2021. Net late-year losses incurred after December 31, and within the taxable year are deemed to arise on the first day of the Fund’s next taxable year.

 

 

22 www.pomonainvestmentfund.com

   

 

Pomona Investment Fund Consolidated Notes to Financial Statements
  September 30, 2021 (Unaudited)

 

Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. The tax character of distributions paid during the tax year ended October 31, 2020 and October 31, 2019 was as follows:

 

Distribution paid from:  2020  2019
Ordinary income  $—   $— 
Long-term capital gains   11,604,757    12,870,379 
Return of Capital   7,767,178    — 
Total distributions paid  $19,371,935   $12,870,379 

 

8.  INVESTMENT TRANSACTIONS

 

 

Total contributions to and purchases of Private Equity Investments for the six months ended September 30, 2021 amounted to $67,029,688. Total distribution proceeds from sale, redemption, or other disposition of investments in Private Equity Investments for the six months ended September 30, 2021 amounted to $54,743,560.

 

9.  INDEMNIFICATION

 

 

Under the Fund’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the ordinary course of business, the Fund may enter into contracts or agreements that contain indemnification or warranties. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

 

10. COMMITMENTS

 

 

As of September 30, 2021, the Fund had outstanding investment commitments to Private Equity Investments totaling approximately $117,400,965.

 

11. LIBOR

 

 

The U.K. Financial Conduct Authority has announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021, and it remains unclear whether LIBOR will continue to exist after that date and, if so, in what form. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in many major currencies. The U.S. Federal Reserve Board, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (“SOFR”) that is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication.

 

Discontinuance of LIBOR and adoption/implementation of alternative rates pose a number of risks, including among others whether any substitute rate will experience the market participation and liquidity necessary to provide a workable substitute for LIBOR; the effect on parties’ existing contractual arrangements, hedging transactions, and investment strategies generally from a conversion from LIBOR to alternative rates; the effect on the Fund’s existing investments (including, for example, fixed-income investments; senior loans; CLOs and CDOs; and derivatives transactions), including the possibility that some of those investments may terminate or their terms may be adjusted to the disadvantage of the Fund; and the risk of general market disruption during the period of the conversion. It is difficult to predict at this time the likely impact of the transition away from LIBOR on the Fund. On November 30, 2020, the administrator of LIBOR announced a delay in the phase out of a majority of the U.S. dollar LIBOR publications until June 30, 2023, with the remainder of LIBOR publications to still end at the end of 2021.

 

12. SUBSEQUENT EVENTS

 

 

Effective October 1, 2021, there were subscriptions to the Fund in the amount of $17,666,755 for Class A and, $19,414,476 for Class I Shares. Through the date the consolidated financial statements were issued, there have not been any additional subscriptions to the Fund.

 

Effective October 15, 2021, the Fund committed $10,000,000 to an investment in Webster Equity Partners Bristol CF, L.P.

 

Effective October 26, 2021, the Fund committed $5,000,000 to an investment in Insight Partners (Cayman) XII Buyout Annex Fund, L.P.

 

Effective November 10, 2021, the Fund committed €7,939,286 (equivalent to $9,157,172) to Montagu+ SCSp.

 

 

Semi-Annual Report | September 30, 2021 23

   

 

Pomona Investment Fund Consolidated Notes to Financial Statements
  September 30, 2021 (Unaudited)

 

The Fund has evaluated subsequent events through the date the consolidated financial statements were issued, and has determined that there were no other subsequent events that require disclosure in or adjustment to the consolidated financial statements.

 

13. COVID-19 IMPACT

 

 

The COVID-19 (novel coronavirus) global pandemic has resulted in travel restrictions, closure of international borders, certain businesses and securities markets, restrictions on securities trading activities, prolonged quarantines, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. It cannot be determined what effect, if any, the ongoing COVID-19 global pandemic will have on the Fund and the performance of its portfolio during this time period or over the next several months. Developments that disrupt global economies and financial markets, such as COVID- 19, may magnify factors that affect the Fund’s performance. Additionally, the Adviser is monitoring developments relating to coronavirus and is coordinating its operational response based on existing business continuity plans and on guidance from global health organizations, relevant governments, and general pandemic response best practices.

 

14. CHANGE IN INDEPENDENT AUDITOR

 

 

On May 27, 2021, KPMG LLP ("KPMG") declined to stand for reappointment as the independent registered public accountants of the Fund. On May 27, 2021, the Audit Committee of the Board of the Fund recommended that the Board replace KPMG with Ernst & Young LLP (“E&Y”) as the independent registered public accountants for the Fund for the fiscal year ending March 31, 2022. On July 23, 2021, KPMG provided a letter confirming that the client-auditor relationship between the Fund and KPMG had ceased.

 

For the fiscal years ended March 31, 2020 and March 31, 2021, KPMG’s audit reports contained no adverse opinion or disclaimer of opinion; nor were its reports qualified or modified as to uncertainty, audit scope, or accounting principles.

 

Further, in connection with its audits for the fiscal years ended March 31, 2020 and March 31, 2021, and the subsequent interim period through July 23, 2021: (i) there were no “disagreements” with KPMG of the kind described in paragraph (a)(1)(iv) of Item 304 of Regulation S-K, which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with their opinion to the subject matter of the disagreement, and (ii) there were no “reportable events” of the kind described in paragraph (a)(1)(v) of such Item 304.

 

The Fund provided KPMG with a copy of the disclosure contained in its filing on Form N-CSR and requested that KPMG furnish the Fund with a letter addressed to the Securities & Exchange Commission stating whether it agrees with the above statements and, if not, stating the respects in which it does not agree. A copy of KPMG’s letter will be filed as Exhibit (a)(4) to the Fund’s N-CSR.

 

During the Fund’s two most recent fiscal years ended March 31, 2020 and March 31, 2021, and the subsequent interim period through July 23, 2021, neither the Fund nor anyone on its behalf consulted E&Y regarding either: (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Fund’s consolidated financial statements, and neither a written report was provided to the Fund or oral advice was provided to the Fund that E&Y concluded was an important factor considered by the Fund in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement or reportable event as defined in Regulation S-K, Item 304(a)(1)(iv) and Item 304(a)(1)(v), respectively.

 

 

24 www.pomonainvestmentfund.com

   

 

Pomona Investment Fund Additional Information
  September 30, 2021 (Unaudited)

 

PROXY VOTING

 

 

The Fund is required to file Form N-PX, with its complete proxy voting record for the twelve months ended June 30, no later than August 31. The Fund’s Form N-PX filing is available: (i) without charge, upon request, by calling the Fund at 1-844-2POMONA or (ii) by visiting the SEC’s website at www.sec.gov.

 

AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES

 

 

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT Part F). The Fund’s Form N-PORT Part F are available, without charge and upon request, on the SEC’s website at www.sec.gov or may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the Public Reference Room may be obtained by calling 1-800-SEC-0330.

 

 

Semi-Annual Report | September 30, 2021 25

   

 

 

 

 

 

 

 

(b)Not applicable.

 

ITEM 2. CODE OF ETHICS.

 

Not applicable to semi-annual reports.

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

 

Not applicable to semi-annual reports.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 

Not applicable to semi-annual reports.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

 

Not applicable.

 

ITEM 6. SCHEDULE OF INVESTMENTS.

 

(a)Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

 

 

 

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable to semi-annual reports.

 

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable to semi-annual reports.

 

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

 

Not applicable.

 

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

 

The registrant’s nominating and governance committee accepts and reviews shareholder nominations for trustees. A shareholder nomination for trustee may be submitted to the registrant by sending the nomination to the nominating and governance committee. The nominating and governance committee will evaluate candidates recommended by management of the registrant and by shareholders in a similar manner, as long as the recommendation submitted by a shareholder includes at a minimum: the name, address and telephone number of the recommending shareholder and information concerning the shareholder’s interests in the registrant in sufficient detail to establish that the shareholder held shares on the relevant record date; and the name, address and telephone number of the recommended nominee and information concerning the recommended nominee’s education, professional experience, and other information that might assist the nominating and governance committee in evaluating the recommended nominee’s qualifications to serve as a trustee.

 

ITEM 11. CONTROLS AND PROCEDURES.

 

(a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

 

 

 

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 13. EXHIBITS.

 

(a)(1) Not applicable to semi-annual reports.

 

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

(a)(3) Not applicable.

 

(a)(4) Disclosure regarding change in registrant’s independent registered public accountant is attached hereto.

 

(b) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(registrant)

 Pomona Investment Fund  
     
By (Signature and Title)* /s/ Michael Granoff  
  Michael Granoff, President & Principal Executive Officer  
  (Principal Executive Officer)  
     
Date December 9, 2021  

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)* /s/ Michael Granoff  
  Michael Granoff, President & Principal Executive Officer  
  (Principal Executive Officer)  
     
Date December 9, 2021  
     
By (Signature and Title)* /s/ Joel Kress  
  Joel Kress, Treasurer and Principal Financial Officer  
  (Principal Financial Officer)  
     
Date December 9, 2021  

 

*Print the name and title of each signing officer under his or her signature.