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BK Opportunities
Fund 7
Quarterly Report | 30th June 2025
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The final N.A.V. and distribution of BK Opportunities Fund-7 (Euro) as of June 30, 2025 is:
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NAV
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76.62%
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Distribution
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8.51%
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Payments will be on July 30th 2025.
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As part of our ongoing efforts to enhance communication with investors, the Crystal Fund newsletter, previously distributed exclusively by email, is now also available in PDF format. You can access the latest edition here.
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BK Opportunities Fund-7 final net performances
as of 30th June 2025
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| Monthly Return (non-annualized) |
+1.0% |
| Year-to-Date (non-annualized) |
+6.0% |
| Annual Return since inception1 |
+14.5% |
| Cumulative Distributions since inception/October 20212 |
+63.3% |
| Cumulative Return since inception/October 20212 |
+44.6% |
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1 — Based on the weighted average internal rate of return (“IRR”) of all classes from their respective closing date at their respective entry price.
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2 — Weighted average distribution of all classes.
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Market Commentary & Portfolio Overview
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The Eurozone economy is gradually recovering. Preliminary June 2025 inflation is 1.9%, below the ECB's target, following significant concerns about prices. Q1 2025 GDP expanded by a stronger-than-expected 0.6%, a positive shift despite a modest 0.9% growth outlook for 2025. The European Central Bank proactively eased policy, cutting its Deposit Facility Rate to 2.0% in June, signalling confidence in inflation convergence and fostering growth.
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The Economy: A Path to Recovery
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This easing by the ECB aims to bolster domestic demand and investment, crucial for sustaining the recovery, even as external factors like global trade dynamics continue to influence the region's economic trajectory. The focus remains on ensuring a stable return to the 2% inflation target while nurturing fragile growth.
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Corporate Markets: Resilience and Growth Drivers
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A cautious yet growing optimism characterises the corporate landscape in the Eurozone as the region emerges from economic headwinds. While many companies continue to grapple with elevated operating costs due to persistent, albeit moderating, inflation, business confidence is on the rise, fueling a renewed drive for expansion and strategic ventures that were previously on hold. Despite the cost of credit, the demand for financing remains strong, indicating a willingness to invest in growth. Furthermore, European businesses are increasingly embracing technological advancements, such as AI, to position themselves for future efficiency and competitiveness, even as they navigate ongoing macroeconomic uncertainties and the evolving global trade environment.
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Loan Market: Recovery
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In Q2 2025, the European leveraged loan market showed modest recovery, supported by steady CLO issuance and selective refinancing and LBO activity. Spreads have tightened slightly but remain elevated, reflecting persistent concerns around credit quality and macroeconomic uncertainty. Defaults are rising slightly but remain manageable.
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CLO Market: Technology and Optimism
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In Q2 2025, the European CLO market continued its gradual rebound, with issuance volumes improving after a subdued 2023.
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Managers priced new deals cautiously, supported by stronger demand from insurers and bank treasuries seeking floating-rate exposure. Spreads have narrowed slightly, although triple-A tranches still trade wider than historical norms. Refinancing and reset activity also resumed, reflecting improved visibility on ECB rate cuts. Year-to-date issuance remains on track to exceed 2024's €48.4 bn (White & Case).
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BK Opp. Fund 7: Performances
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BK Opportunities Fund 7 (BK-7) was launched in Q2 2021. Over the years, we have actively traded BB and B-rated tranches of European CLOs. Our portfolio has remained very diversified across all sectors, with a very low idiosyncratic exposure. In addition to capturing the usual extra return of CLOs from its niche market, we have employed various structural arbitrage strategies, in some cases linked to the duration of our positions.
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This quarter, BK Opportunities Fund-7 is making a weighted average distribution of 8.5% (non-annualised, based on number of shares). Payments will be wired around on the 30th July 2025. The cumulative distribution of the fund is 60.75% (non-annualized, based on the weighted average distribution of all classes), and the annual return since inception is +14.5% (net), materially exceeding our expectations at the fund’s launch.
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The fund is now exiting its reinvestment mode, entering now the 2-year amortisation period when we are focusing on monetising our positions. As we collect coupons & principal and now distribute all proceeds, the fund’s performance should continue to strengthen, and distribution will accelerate.
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Fund and Market Performances as of 30th June 2025
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Monthly Performances
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Cumulative and Quarterly Distribution
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Top 10 Industry Exposure
| Industry |
% of Portfolio |
| Healthcare & Pharmaceuticals |
15.1% |
| Services: Business |
9.4% |
| Chemicals, Plastics & Rubber |
7.3% |
| High-Tech Industries |
7.1% |
| Telecommunications |
6.3% |
| Construction & Building |
5.8% |
| Banking, Finance, Insurance & Real Estate |
5.4% |
| Services: Consumer |
5.0% |
| Beverage, Food & Tobacco |
4.6% |
| Capital Equipement |
4.4% |
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Top 10 Issuers Exposure
| Issuer |
% of Portfolio |
| Ineos Limited |
2.1% |
| Liberty Global |
1.6% |
| Altice NV |
1.3% |
| ION Group |
1.2% |
| 3I Group |
1.2% |
| Lorca JVCO |
1.0% |
| Verisure |
1.0% |
| Laboratoire EIMER |
0.9% |
| Quimper Ab |
0.8% |
| Nidda German Topco |
0.8% |
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Fund’s Summary
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| Currency |
EUR |
| Fund’s Inception |
October 2021 |
| Distribution |
Quarterly |
| Investment Manager |
Oristan Ireland DAC |
| Administrator |
Apex Funds Services |
| Custodian |
CIBC Bank & Trust |
| Counsel |
Dillon Eustace |
| Auditor |
Deloitte |
| Bloomberg Page |
BKOPP7A KY <Eqty> |
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Portfolio Manager
Olivier Gozlan
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This is not for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to law or regulation. The information contained herein is for information only and does not constitute an offer regarding any product. The document has been prepared by Oristan Ireland DAC and the data have not been audited nor verified. Past performance cannot indicate future performance. There is no assurance that the investment objective will be achieved and investment results may vary.
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