SLF Realisation Fund : Financial Statements 30 06 2022

SLF REALISATION FUND LIMITED

(formerly known as KKV SECURED LOAN FUND LIMITED)

Annual Report and Audited Consolidated Financial Statements

for the year ended 30 June 2022

SLF Realisation Fund Limited

Annual Report and Audited Consolidated Financial Statements for the year ended 30 June 2022

GROUP METRICS FOR THE YEAR ENDED 30 JUNE 2022

As at 30 June 2022, the investment objective of SLF Realisation Fund Limited (the "Company" and together with its subsidiaries, the "Group") is to realise all remaining assets in the portfolio of the Ordinary Share class and the 2016 C Share class in a prudent manner consistent with the principles of good investment management and to return cash to shareholders in an orderly manner. The Group's base currency is Sterling.

(2.86)% per Ordinary

Share1

1.81% per 2016 C Share1

NAV total return per share for the year ended 30 June 2022

£21.36 million for

Ordinary Shares

£15.39 million for 2016

C Shares

Market capitalisation as at

30 June 2022

17.44p per Ordinary Share

18.79p per 2016 C Share

NAV per Share as at

30 June 2022

£28.48 million for the

Ordinary Share class

£58.35 million for the 2016 C

Share class

Return of capital to shareholders during the year ended 30 June 2022

(65.60)% Ordinary Share1

(41.03)% 2016 C Share1

Share price discount to NAV

as at 30 June 2022

£3.60 million for the Ordinary Share class

£6.95 million for the 2016

C Share class

Return of capital to

shareholders after the

reporting year ended 30 June

2022

The comparatives for the other group metrics detailed above are disclosed on page 7.

1 These are Alternative Performance Measures; refer to pages 106 to 108 for details.

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SLF Realisation Fund Limited

Annual Report and Audited Consolidated Financial Statements for the year ended 30 June 2022

GROUP METRICS FOR THE YEAR ENDED 30 JUNE 2022 (CONTINUED)

The key drivers of the change in Net Asset Value ("NAV") between 1 July 2021 and 30 June 2022 are highlighted in the graphs below:

Ordinary Shares

2016 C Share

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SLF Realisation Fund Limited

Annual Report and Audited Consolidated Financial Statements for the year ended 30 June 2022

Index	Page
Financial Metrics and Performance Summary	5
Company Overview	8
Chairman's Statement	9
Strategic Report	12
Investment Report	26
Directors' Report	35
- Statement of Directors' Responsibilities	36
Directors' Biographies	38
Corporate Governance Report	39
Audit and Risk Committee Report	47
Statement of Compliance with the UK Code of Corporate Governance	51
Independent Auditor's Report	52
Consolidated Statement of Comprehensive Income	60
Consolidated Statement of Financial Position	61
Consolidated Statement of Changes in Equity	62
Consolidated Statement of Cash Flows	63
Notes to the Financial Statements	64
Alternative Performance Measures	106
Company Information	109
List of Acronyms	110

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SLF Realisation Fund Limited

Annual Report and Audited Consolidated Financial Statements for the year ended 30 June 2022

FINANCIAL METRICS AND PERFORMANCE SUMMARY

Financial Metrics

NAV Total Return1

The NAV total return measures how the NAV per Ordinary share and 2016 C share has performed over a period, taking into account both capital distributions and dividends paid to shareholders. The NAV total return achieved by the Group is detailed in the table below:

Period	Ordinary Shares	2016 C Shares
Year to 30 June 2022	(2.86)%	1.81%
3 year2	(56.40)%	(14.18)%
Since inception	(26.90)%	(7.08)%

The NAV total return since inception is illustrated in the graph below:

Return of Capital

The investment objective of the Ordinary Shares and the 2016 C Shares is to realise all remaining assets in a prudent manner consistent with the principles of good investment management and to return cash to shareholders in an orderly manner. During the year ended 30 June 2022, the Company made a return of capital on four separate occasions, as detailed below, returning a total of £28,478,054 to Ordinary shareholders and £58,348,173 to 2016 C shareholders.

		Ordinary Shares	2016 C Shares
Record date	Amount	Amount returned to	Amount	Amount returned to
		per Share	shareholders	per Share	shareholders
20 July 2021	3p	£10,679,270	7p	£9,724,695
2	September 2021	3p	£10,679,270	21p	£29,174,087
9	March 2022	1p	£3,559,757	10p	£13,892,422
10 May 2022	1p	£3,559,757	4p	£5,556,969

1. Refer to pages 106 to 108 for the calculation of these alternative performance measures.
2. NAV total return over a 3-year period from 1 July 2019 to 30 June 2022.

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