Corporate Structure and PDF Status

Profits that don't cost the earth™

CVC Sustainable Investments (CVCSI) has a unique corporate structure aimed at maximising both the tax position of investors and also the scope of opportunities available to the fund.

CVCSI consists of two separate Australian unlisted public investment companies, whose shares are stapled together. The first company within the "stapled entity", CVCSI No. 1, is a registered Pooled Development Fund (PDF). The second company, CVCSI No. 2, is a regular investment company.

The Australian Government's Pooled Development Fund programme granted certain tax concessions to investors in a PDF in return for restrictions on the size and type of investments a PDF is allowed to make (refer below). Accordingly, where CVCSI decides to make an investment which is PDF-compliant it will do so through the PDF (CVCSI No. 1) subject to sufficient funds being available. Where an investment is not PDF-compliant, or insufficient funds are available in CVCSI No. 1, the investment will be made through the regular investment company (CVCSI No. 2).

This innovative and flexible structure means that the concessional tax treatment afforded to PDF-compliant investments is available to investors, while attractive opportunities that do not qualify as PDF-compliant can still be pursued through the regular investment company.

The shares in CVCSI No. 1 and CVCSI No. 2 are stapled together to form a single Stapled Security. The individual shares are unable to be traded or otherwise dealt with separately. The stapling is facilitated under the constitutions of each company and by a Stapling Deed entered into between the parties.

The Stapled Entities

CVCSI consists of two separate Australian unlisted public investment companies, whose shares are stapled together. The two investment vehicles comprising the stapled security are described in this table.