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BK Opportunities
Fund 7
Quarterly Report | 30th September 2025
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The final N.A.V. and distribution of BK Opportunities Fund-7 (Euro) as of September 30, 2025, is:
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NAV
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69.58%
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Distribution
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9.00%
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Payments will be on November 3rd 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 September 2025
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| Monthly Return (non-annualized) |
+0.6% |
| Year-to-Date (non-annualized) |
+8.7% |
| Annual Return since inception1 |
+14.3% |
| Cumulative Distributions since inception/October 20212 |
+72.8% |
| Cumulative Return since inception/October 20212 |
+46.6% |
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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 maintained a stable, "sane" market environment last quarter. Economic recovery was gradual, supported by stable inflation at around 2.0% and a resilient labor market, leading the ECB to pause its rate cuts. Stock markets experienced increasing fund inflows and a strong IPO rebound. In debt markets, the leveraged loan sector revived via refinancing due to falling rates. This activity was smoothly absorbed by a robust Euro CLO market, which benefited from strong investor demand for floating-rate assets and resilient credit quality, evidenced by a manageable 2.4% loan default rate.
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The Economy: Resilience
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The Euro Area economy continues its gradual expansion, with GDP showing stabilization or modest growth in the last quarter, affirming underlying resilience. The ECB is effectively managing the monetary transition, with interest rates now at levels that are successfully driving inflation down toward the 2% target, ensuring a sustainable return to price stability. This could lead to easing of monetary policy.
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Corporate Markets: Cautious Optimism
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The market was characterized by a softening in overall earnings growth against a complex macroeconomic backdrop, yet saw a significant rebound in the IPO market. While many companies demonstrated operational resilience, especially in sectors like luxury and certain tech areas, the broader trend pointed toward decelerating revenue and profit growth compared to prior periods. This was largely due to the challenging macroeconomic environment.
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The IPO Market Rebound was a defining feature of the quarter, signaling a return of investor appetite for new listings. Notably, Europe saw a sixfold increase in IPO proceeds compared to Q2 2025, driven by a decline in market volatility and an improvement in investor sentiment. This revival suggests that improving macro conditions enabled a 'flight to quality,' where high-quality companies with compelling growth and strong profitability successfully accessed public markets.
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Loan Market: Improved Sentiment
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The Euro corporate loan market demonstrated further revival and improved sentiment in Q3 2025, driven primarily by borrowers executing refinancing deals to capitalize on falling interest rates and tighter margins. This activity, which saw intensified competition between the public and private markets, ensured that the credit fundamentals remained resilient despite only a moderate increase in new M&A and LBO activity.
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CLO Market: Technology and Optimism
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The Euro CLO market maintained a robust issuance pace in Q3 2025, underpinned by sustained strong investor demand for floating-rate assets. The growing influence of CLO ETFs and the resilient credit quality within collateral portfolios supported the market's stability. The European leveraged loan default rate was reported by Fitch as 2.4% on a trailing 12-month basis. The credit quality within CLO portfolios remained stable, as managers actively minimized exposure to the lowest-rated (CCC) assets, ensuring the continued resilience of the structure.
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Compared to the US CLO market, the European market appears more stable.
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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 8.7% (non-annualised, based on number of shares). Payments will be wired around on the 3rd November 2025. The cumulative distribution of the fund is 69.75% (non-annualized, based on the weighted average distribution of all classes), and the annual return since inception is +14.3% (net), materially exceeding our expectations at the fund’s launch.
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The fund is now exiting its reinvestment mode, entering a 2-year amortization period, during which we will focus on monetizing 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 September 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 |
14.2% |
| Services: Business |
9.5% |
| Chemicals, Plastics & Rubber |
7.3% |
| High-Tech Industries |
7.2% |
| Telecommunications |
6.2% |
| Banking, Finance, Insurance & Real Estate |
6.0% |
| Construction & Building |
5.6% |
| Beverage, Food & Tobacco |
5.0% |
| Capital Equipment |
4.8% |
| Services: Consumer |
4.8% |
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Top 10 Issuers Exposure
| Issuer |
% of Portfolio |
| Ineos Ltd |
2.1% |
| Liberty Global |
1.6% |
| Lorca JVCO |
1.2% |
| ION Platform |
1.1% |
| Altice NV |
1.1% |
| 3I Group |
1.1% |
| Vmed O2 UK |
1.0% |
| Quimper Ab |
0.9% |
| Aegis Lux |
0.8% |
| Laboratoire EIMER |
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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