Pipeline Project

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Disclaimer

Barak Fund Management will not be liable for any special, indirect, incidental, consequential or punitive damages or any damages whatsoever, whether in an action of contract, statute, delict (including, without limitation, negligence) or otherwise that relate to the use of this website. All information contained in this website pertaining to products and services and their terms and conditions, is subject to change without notice.

Although care has been taken as to what is contained in this website, no attempt has been made to give definitive or exhaustive statements of law or any opinions on specific legal issues and no representation is made or warranty given that the information is complete or accurate. This website does not constitute or offer legal or other advice and you should not rely on it as such advice.

Past performance is no guarantee of future returns and the fact sheets provided are for illustrative purposes only. The value of investments and income that are dependent on the performance of underlying assets or other variable market factors may vary from time to time. Investors must take cognisance of the fact that all the information provided are of historic nature.

Use of the website is entirely at the users own risk. Anyone requiring advice on any of the matters referred to herein should consult lawyers or other professionals familiar with the appropriate jurisdiction and legislation.

This Site contains information from Barak Fund Management and about the investment Funds it advisers. The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy. The distribution of information contained on this Site and the sale of shares in the Funds may be subject to legal or regulatory restrictions in certain countries in which users are resident or of which they are citizens.

This Site and its contents are being made available for the convenience of the present Investors of the Funds and such other persons expressly authorized by Barak Fund Management (“Authorized Persons”) for information purposes only, provided such Investors and Authorized Persons are not prohibited by any applicable law of any jurisdiction from receiving such information. Persons accessing this Site are therefore required to inform themselves about and observe such restrictions.

Barak Fund is an authorised financial services provider.

Disclaimer

Barak Fund Management will not be liable for any special, indirect, incidental, consequential or punitive damages or any damages whatsoever, whether in an action of contract, statute, delict (including, without limitation, negligence) or otherwise that relate to the use of this website. All information contained in this website pertaining to products and services and their terms and conditions, is subject to change without notice.

Although care has been taken as to what is contained in this website, no attempt has been made to give definitive or exhaustive statements of law or any opinions on specific legal issues and no representation is made or warranty given that the information is complete or accurate. This website does not constitute or offer legal or other advice and you should not rely on it as such advice.

Past performance is no guarantee of future returns and the fact sheets provided are for illustrative purposes only. The value of investments and income that are dependent on the performance of underlying assets or other variable market factors may vary from time to time. Investors must take cognisance of the fact that all the information provided are of historic nature.

Use of the website is entirely at the users own risk. Anyone requiring advice on any of the matters referred to herein should consult lawyers or other professionals familiar with the appropriate jurisdiction and legislation.

This Site contains information from Barak Fund Management and about the investment Funds it advisers. The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy. The distribution of information contained on this Site and the sale of shares in the Funds may be subject to legal or regulatory restrictions in certain countries in which users are resident or of which they are citizens.

This Site and its contents are being made available for the convenience of the present Investors of the Funds and such other persons expressly authorized by Barak Fund Management (“Authorized Persons”) for information purposes only, provided such Investors and Authorized Persons are not prohibited by any applicable law of any jurisdiction from receiving such information. Persons accessing this Site are therefore required to inform themselves about and observe such restrictions.

Barak Fund is an authorised financial services provider.

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Barak Fund Management and related entities remain fully operational and focussed on delivering proposed restructuring

• Barak Funds SPC Limited continues to operate and is servicing borrowers across Africa • A high percentage of the investors in the Funds have already indicated that they support the restructuring and will remain invested • Restructuring plan on track


Posted: 15 March 2021

LONDON, 12 March 2021 - Barak Fund Management Limited (“Barak”), a Mauritius registered entity is the investment manager of Barak Funds SPC Limited (the "Company"), one of Africa’s leading alternative credit financiers. The Company is incorporated in the Cayman Islands and offers various fund investments (the "Funds") to investors who are predominantly located in Europe. Barak notes recent media speculation regarding the liquidity of the Company, and wishes to clarify some key points in this regard.

Contrary to claims made in some media reports, Barak is not “imploding”, and remains fully operational and servicing our clients. The Company also continues to operate and is servicing borrowers across the African continent. The Fund’s investments consist predominantly of loans to African businesses and as a result of the COVID-19 pandemic and lockdowns, some of those businesses have cashflow issues. Given that the Funds have limited cash available to pay and with it being more difficult to accurately value the restricted liquidity assets, the Fund's independent board decided to suspend redemptions from the Funds and subscriptions into the Funds until such time as some sense of normalcy had been restored. This step was taken to protect all of the investors. It is not an unusual step for an investment fund to take in extraordinary circumstances such as these and investors are specifically made aware that such steps may be implemented when they sign the subscription forms for the Funds. While the suspensions are in place, the Funds are operational with borrowers being serviced, fully functional credit reviews and active accounting taking place.

The suspension simply means that we cannot accept inflows or outflows in fairness to all our investors. Since implementing the suspension, Barak and the Company have been working on a plan to lift the suspensions. In essence, Barak has focussed on identifying those investments that are prone to restricted liquidity and separating those out from the unaffected investments. Barak has worked with the Company's lawyers and has a clear plan to deliver a restructuring, which will allow those investors who wish to do so to exit, and those wishing to continue to remain invested in the Funds' strategies. The restructuring plan requires investor approval, and a detailed letter explaining the plan was sent to investors on 2 February 2021. 2 A high percentage of the investors in the Funds have already indicated that they support the restructuring and will remain invested in the Funds.

Barak is confident that the restructuring will be approved during the scheduled general meeting. Barak has been keeping investors apprised of the situation throughout the suspension period and has full confidence in its ability to address the current status of the Funds as well as its ability to provide transparent updates to all investors in the current environment. Media reports also created the erroneous impression that the Company and Barak are associated with Greensill, or that there are similarities between Barak and Greensill. Neither Barak, nor the Company nor any of the Funds is in any way associated with Greensill, nor is the business model linked to the Greensill business model.

The auditors of the Funds are working towards completing the Annual Financial Statements. The auditors have released the 2019 audited annual financial statementsfor the Barak Shanta Fund, the Barak Impact Fund and the Barak Asha Fund and are working towards completion of the annual financial statements for the Barak Africa Trade Finance Fund, the Barak Sharia Fund and the Barak Structured Trade Finance Fund. We have also agreed with the auditors to perform a rollover and continue with the completion of the December 2020 year-end audit immediately on sign-off of the 2019 audit in order to avoid any further delays.

Barak CEO Jean Craven said: “We have taken firm steps to protect our investors by implementing a temporary suspension of trading in the Fund. This has given us valuable time to find a lasting solution to the liquidity constraints some of our investments are experiencing. We are focussed on implementing this solution. We remain confident that the private credit asset class remains a strong indicator for growth and opportunities in the Emerging Market environment, and look forward to providing further updates on the progress of our restructuring.”

For more information: http://www.barakfund.com/

Media Enquires: Fletcher Advisory

Daniel Thole +27 (0) 61 400 2939

daniel@fletcheradvisory.com

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