The Board of Directors have assessed if it is appropriate to adopt the going concern basis of accounting in preparing these Consolidated Financial Statements. As part of this assessment, the Board of Directors have considered a wide range of information relating to the present and future conditions, as well as the impact on investment and sale expectations for each of the Oakley Funds, cash flow projections and the longer-term strategy of the Company.

As part of the assessment, the Board of Directors:

• assessed liquidity, solvency and capital management. The Company considered liquidity risk as the risk that the Company may encounter difficulty in meeting obligations arising from its financial liabilities that are settled by delivering cash or another financial assets, or that such obligations would have to be settled in a manner disadvantageous to the Company. Unfunded commitments to the Oakley Funds are irrevocable and can exceed cash and cash equivalents available to the Company. Based on current cash flow projections and barring unforeseen events, the Company expects to be able to meet its obligations as they fall due;

as at 31 December 2024, cash and cash equivalents of the Company amount to £103 million. The Company has total unfunded capital commitments of £646 million relating to the Oakley Funds which are expected to be called over the next five years. Under the Company’s bye-laws, the Company is permitted to borrow up to 25% of total shareholders’ equity, which would amount to approximately £306 million for the year ending 31 December 2024. As of 31 December 2024, the Company had drawn down £106 million including accrued interest of the £225 million facility. The Directors consider the Company to have sufficient resources and liquidity and can continue to operate for a period of at least 12 months;

• considered the estimates inherent to the valuations of the Oakley Funds and the unquoted debt and equity securities. The Company’s approach to valuations was consistent with the prior year’s approach. In addition, key assumptions and estimates relating to the valuation of the unquoted debt instruments were considered. This included assessment of counterparty risk, interest rates and future cash flow projections; and
• assessed the operational resilience of the Company’s critical functions which includes monitoring the performance of the Company’s key service providers.

The Board of Directors considers it appropriate to prepare the Consolidated Financial Statements of the Company on the going concern basis.

2.2 Functional and presentation currency

The Consolidated Financial Statements are presented in British pounds, which is the Company's functional currency.

Transactions and balances

Transactions in currencies other than British pounds are recorded at the spot rates of exchange prevailing on the dates of the transactions.

At each reporting date, investments and other monetary assets and liabilities that are denominated in foreign currencies are translated at the closing spot rates prevailing on the reporting date. Non-monetary assets and liabilities that are measured at fair value in foreign currencies are also translated into EUR at the spot exchange rate at the reporting date. Capital drawdowns and proceeds of distributions from the Oakley Funds and foreign currencies and income and expense items denominated in foreign currencies are translated into British pounds at the exchange rate on the respective dates of such transactions.

Foreign exchange gains and losses on other monetary assets and liabilities are recognised in net foreign currency gains and losses in the consolidated statement of comprehensive income.

The Company does not isolate unrealised or realised foreign exchange gains and losses arising from changes in the fair value of investments. All such foreign exchange gains and losses are included with the net realised and unrealised gains or losses on investments in the consolidated statement of comprehensive income.