Annual Report and Accounts

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Bramdean �	LSE:BRAL	London	Ordinary Share	GG00B1XCHB94	STERLING PART SHS NPV

Industry Sector	Turnover	Profit	EPS - Basic	PE Ratio	Market Cap
	0	0		N/A	0

RNS Number : 8360Y
Bramdean Alternatives Limited
11 July 2008

Regulatory Announcement
Bramdean Alternatives Limited

11 July 2008

BRAMDEAN ALTERNATIVES LIMITED

STATEMENT OF ANNUAL FINANCIAL REPORT
11 JULY 2008

The financial information set out in this announcement does not constitute the Company's statutory accounts for the year ended 31 March
2008.

The financial information for the year ended 31 March 2008 is derived from the financial statements delivered to the UK Listing
Authority. The Auditors reported on those accounts, their report was unqualified and did not contain a statement under Section 65(3) of The
Companies (Guernsey) Law, 1994.

CHAIRMAN'S STATEMENT

I am pleased to present shareholders with the maiden Annual Report of Bramdean Alternatives Limited for the year ended 31 March 2008.

The Company was initially incorporated on 5 January 2007 in Guernsey under The Companies (Guernsey) Law, 1994, and used a revolving loan
facility provided to it by Bank of Scotland to finance commitments to certain private equity and specialty funds in advance of its
subsequent Placing and Offer in July 2007.

The Company raised �131 million in Placing and Offer through the issue of participating shares of no par value ("Shares"), designated as
Sterling and U.S. Dollar Shares. The Company was admitted to the Official List of the London Stock Exchange on 9 July 2007. The net proceeds
of the Placing and Offer, which attracted both institutional and private investors, were substantially invested on
1 August 2007.

The Company has invested fully in accordance with its investment policy as set out in the Prospectus. As at 31 March 2008, the Company
was invested in a diversified portfolio of 35 funds across many geographical regions and investment strategies.

Since its admission, the Company's net asset value per Sterling Share appreciated by 1.8% as at 31 March 2008; while the net asset value
per U.S. Dollar Share declined by 2% as at 31 March 2008. The difference in performance between the Company's Share classes arises from
currency hedging, which is an integral part of the Company's investment strategy given that the Company's assets are primarily denominated
in U.S. Dollars.

Since 31 March 2008, I am pleased to report that the Company's net asset values for the Sterling Shares and for the U.S. Dollar Shares
have made good progress and have appreciated by 3.4% to 101.86 pence and by 2.8% to US$1.0053 respectively as at 31 May 2008, representing a
premium to the Offer prices of both Share classes.

The Company has been exposed to the weakness in the global financial markets throughout the majority of the reported period and since
its admission to the Official List. This has impacted the share price performance of the Sterling Shares, which have seen more trading
activity than the U.S. Dollar Shares. At 31 March 2008, the Sterling Shares were trading at 80.50 pence compared with their issue price of
�1.00; the U.S. Dollar Shares were trading at U.S$1.02 compared with their issue price of U.S$1.00.

Since admission, the Sterling Shares have traded in a range between 103.75p and 80.50p. The Sterling Shares have traded at a discount to
net asset value since October 2007, while the U.S. Dollar Shares have traded at a premium.

While the Sterling Shares's discount is disappointing, it has compared favourably with similar vehicles in the listed alternatives
investment company sector. The Directors monitor the discount closely and are willing to support the Company's share price as set out in its
policy on discount control management.

The Company begins its new year with net assets amounting to US$256,400,905 and remains the only listed investment company on the London
Stock Exchange with a mandate to invest across the whole range of alternatives assets.

The Company had no debt at 31 March 2008. In line with the Company's dividend policy, the Board has not recommended payment of a final
dividend.

The Company's Investment Manager believes that the change in the macro-economic environment as a result of the financial turmoil
presents both new opportunities and risks for the Company and that the strategies in which the Company is invested, and continues to invest,
offer the opportunity for continued, steady growth. This assessment is described more fully later in this Annual Report.

Annual General Meeting

I look forward to welcoming shareholders to the Annual General Meeting of the Company at 10.30 am on Monday 1 September 2008, which will
be held at Canada Court, Upland Road, St. Peter Port, Guernsey GY1 3QE, Channel Islands.

Chairman
10 July 2008

DIRECTORS' REPORT

Incorporation

Bramdean Alternatives Limited (the "Company") was incorporated on 5 January 2007 in Guernsey, Channel Islands, with limited liability
under The Companies (Guernsey) Law, 1994 (as amended) as an investment holding company. The Company is now a closed ended investment
company, registered in Guernsey, following its admission to the London Stock Exchange. Trading in the Company's U.S. Dollar and Sterling
Shares commenced on 9 July 2007.

Management arrangements

The Company has entered into an Investment Management Agreement with Bramdean Asset Management LLP ("Bramdean"). Bramdean is responsible
for managing the Company's assets, subject to the overall supervision of the Board. Bramdean's investment team consists of five investment
professionals and is led by its Chief Executive Officer, Nicola Horlick.

The annual management fee is 1.5% of the net asset value with a 10% performance fee subject to an 8% return with a high watermark.

Bramdean has appointed RMF Investment Management - Nassau Branch ("RMF") to manage investments in that part of the Company's portfolio
which may, from time to time, be allocated to investments in hedge funds. RMF has discretionary authority to invest and divest with respect
to all investments making up the part of the portfolio allocated to investments in hedge funds.

Discount control

As part of the discount control mechanisms, the Board may consider implementing a Share buy-back at each quarterly Board meeting should
the Shares have been trading at a discount to net asset value of 10% or greater for more than 90 days. The Company has the authority to
manage demand flows for its Shares by purchasing up to 14.99% of each class of Share. Up to 10% may be held within its Treasury function and
resold. The remainder will be cancelled.

Annual shareholder approval will be sought to renew this authority.

In the year ended 31 March 2008, the Company bought back 125,000 Sterling Shares for cancellation.
Investment objective and investment policy

The investment objective of the Company is to generate long-term capital gains. The Company invests in a diversified portfolio of
private equity funds, hedge funds and other specialty funds as described below. The Company may also hold direct holdings in unquoted
companies and quoted securities.

The Company seeks to hold a broadly diversified portfolio of investments by country, industry sector, investment stage and size of
investment, as well as by strategy. Geographical analysis of investments is disclosed in note 16.

The Company seeks to operate within the asset allocation ranges set out below. While the Company is establishing its strategic
allocation to private equity funds and specialty funds, the Company manages the capital that is committed but not yet called in a
Transitional portfolio. This portfolio invests in funds that reflect the characteristics of private equity and is also structured to
preserve that capital over the medium-term and be as liquid as possible so that the Company can satisfy capital calls. Over the course of
the reporting period and as a reflection of the turbulence being experienced by the global equity markets, the decision was taken to reduce
the emphasis on achieving private equity-type returns and to increase the focus on capital preservation.

Asset allocation ranges

The Company currently operates on the basis of the following long-term asset allocations:

Private Equity Funds 30% - 60%
Strategic Hedge Funds 15% - 45%
Specialty Funds 10% - 30%

The actual percentage of the Company's gross assets invested in private equity funds and direct holdings, strategic hedge funds and
specialty funds may fall outside these ranges.

Private equity funds and direct holdings

The Private Equity funds portfolio comprises investments primarily in the buy-out, growth equity, venture capital, secondaries and
mezzanine debt sectors. The Company may also make co-investments, either directly with the general partners of the private equity funds that
the Company invests in, or via a co-investment fund. The underlying private equity funds are expected to be primarily invested in Europe and
the United States. No co-investments have been made to date.

Hedge funds

The Company invests in a concentrated range of hedge funds which pursue multiple investment strategies, specifically: Relative Value,
Event Driven, Equity Hedged, Global Macro and Managed Futures to create balance within the portfolio. The Company will typically hold 10-15
underlying hedge funds at any given point in time within its Strategic Hedge Funds portfolio. The Strategic Hedge Funds portfolio is neither
style nor strategy specific.
RMF has been appointed as Investment Sub-Manager under the terms of an Investment Sub-Management Agreement. RMF is responsible for
taking decisions on all individual hedge funds which form part of the Company's Strategic Hedge Funds portfolio.
Specialty funds

The Company invests in a globally diversified portfolio of specialty funds which include, but are not limited to:
* Real estate funds
* Infrastructure funds
* Natural resources funds
* Structured finance funds

The schedule of investments held by the Company as at 31 March 2008 is set out on page 43.

Over-commitment

The Company employs a policy of over-commitment in order to ensure it deploys its capital efficiently and that its intended investment
allocation to private equity is met. At 31 March 2008, the Company was 16% over-committed to its private equity and specialty investments.
Gearing

The Company may borrow up to 25% of the net asset value of the Company for short-term purposes as may be necessary for settlement of
transactions, or for long-term purposes to fund over-commitments to private equity and specialty funds, to fund hedging contracts or to meet
ongoing expenses. The Company will also be geared indirectly to the extent that underlying funds are themselves geared. The Company had no
debt as at 31 March 2008.
Substantial interests

The Disclosure and Transparency Directive, which became effective on 20 January 2007, requires shareholders to disclose their direct or
indirect holdings in the Company to the UK Financial Services Authority upon reaching or exceeding thresholds of 5%, 10%, 15%, 20%, 25%,
30%, 50%, and 75% (based on voting rights owned or controlled in the issued share capital of the Company). The Company must disseminate
notifications it receives to the wider market.
The Company has been notified of the following substantial interests:
* Elsina Limited 29.9%
* Merseyside Pension Fund 14.9%
Directors' holdings

The Directors, as stated on pages 8 and 44, with the exception of C. Le Tissier and W. Simpson, all served from 30 May 2007 to 31 March
2008.

As at 31 March 2008, the following Directors had a beneficial ownership of Shares, representing the following percentage interest in the
Company's voting rights and net assets:

B.P. Larcombe 50,000 Sterling Shares 0.04%
M.P.S. Barton 10,000 Sterling Shares 0.01%
M.D. Buckley 100,000 U.S. Dollar Shares 0.04%

As at 31 March 2007, the Directors had no beneficial interest in the Company's share capital.

Statement of Directors' responsibilities

The Directors are responsible for preparing the Financial Statements for each financial year which give a true and fair view, in
accordance with applicable Guernsey law and International Financial Reporting Standards, of the state of affairs of the Company and of the
profit or loss of the Company for that year. In preparing the Financial Statements, the Directors are required to:

* Select suitable accounting policies and apply them consistently
* Make judgements and estimates that are reasonable and prudent
* State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in
the Financial Statements
* Prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue
in business.

The Directors confirm that they have complied with the above requirements in preparing the Financial Statements.

The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the Company and enable them to ensure that the Financial Statements comply with Guernsey company law. They are also responsible
for safeguarding the assets of the Company and for taking reasonable steps to prevent and detect fraud and other irregularities.

The maintenance and integrity of the Bramdean Alternatives Limited website is the responsibility of the Directors; the work carried out
by the auditors does not involve consideration of the maintenance and integrity of the website and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation in other
jurisdictions.

Corporate governance

Introduction

As a closed-ended investment company registered in Guernsey, the Company is eligible for exemption from the requirements of the Combined
Code (the "Code") issued by the UK Listing Authority as updated by the Financial Reporting Council in June 2006. The main requirements of
the Code set out principles of good governance and a code of best practice. The Board has put in place a framework for corporate governance
which it believes is suitable for an investment company and enables the Company to comply voluntarily with the main requirements of the
Code.

The Board receives full details of the Company's assets, liabilities and other relevant information in advance of Board meetings. The
Board meets formally at least four times a year; however, the Investment Manager and Company Secretary stay in more regular contact with the
Directors on a less formal basis. Individual Directors have direct access to the Company Secretary and may, at the expense of the Company,
seek independent professional advice on any matter that concerns them in the furtherance of their duties.

The Board

As at 31 March 2008, the Board consisted of the five non-executive Directors all of whom were independent of the Investment Manager and
RMF and free from any business or other relationship that could materially interfere with the exercise of their independent judgement. This
continues to apply in the case of all the Directors other than Peter Barton, who was appointed Chairman of the Investment Manager on 9 June
2008; from that date he ceased to be an independent Director of the Company and resigned from its Audit Committee, but remains on the Board
as a non-executive Director. The Board does not consider it necessary to appoint a Chief Executive or Senior Independent Director.

The attendance record of the Directors for the year ended 31 March 2008 is set out below:

Quarterly Audit Committee Ad Hoc
Board Meetings Meetings Meetings
B. P. Larcombe 4 2 3
C. N. Anquillare, JP 4 2 3
M. D. Buckley 4 2 3
M. P. S. Barton 4 2 3
N. D. Moss 4 2 3
C. Le Tissier 1 - -
W. Simpson 1 - -

Total number of meetings 5 2 3

C. Le Tissier and W. Simpson resigned on 30 May 2007.
The Board has a breadth of experience relevant to the Company, and the Directors believe that any changes to the Board's composition can
be managed without undue disruption. With any new Director appointment to the Board, consideration will be given as to whether an induction
process is appropriate and the Board as a whole will consider new Board appointments.

Audit Committee

The Board has established an Audit Committee. The Audit Committee meets at least twice a year and is responsible for ensuring that the
financial performance of the Company is properly reported on and monitored and will provide a forum through which the Company's external
auditors may report to the Board. The Audit Committee reviews the annual and interim financial statements, results, announcements, internal
control systems and accounting policies of the Company.

Throughout the accounting period under review, the Audit Committee comprised all the members of the Board and was chaired by Peter
Barton. With effect from 9 June 2008, on which date he became Chairman of the Investment Manager, Peter Barton resigned from the Audit
Committee and was succeeded as its Chairman by Nicholas Moss.

Remuneration committee

Given the size and nature of the Company, it is not deemed necessary to form a separate remuneration committee.

Internal controls

The Board is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness. The Board confirms
that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. This process has been
in place for the period under review and up to the date of approval of this Annual Report and Financial Statements, and is reviewed by the
Board and accords with The Turnbull Guidance. The Code requires Directors to conduct, at least annually, a review of the Company's system of
internal control, covering all controls, including financial, operational, compliance and risk management.
The internal control systems are designed to meet the Company's particular needs and the risks to which it is exposed. Accordingly, to
achieve business objectives, the internal control systems are designed to manage rather than eliminate risk. Internal control systems, by
their nature, can only provide reasonable and not absolute assurance against misstatement and loss. On this basis the Board does not
consider it necessary for the Company to have its own internal audit function, as required by the Combined Code.
The Board has delegated the responsibility for managing the Company's investment portfolio, the provision of custody and administration
services, registrar and corporate secretarial functions including the independent calculation of the Company's net asset value and the
production of the Annual Report and Financial Statements, which are independently audited. Whilst the Board delegates responsibility, it
retains accountability for the functions it delegates and is responsible for the systems of internal control. Formal contractual agreements
have been put in place between the Company and providers of these services.
Compliance reports are provided at each Quarterly Board Meeting by the Administrator.

Going concern

After making enquiries and given the nature of the Company and its investments, the Directors are satisfied that it is appropriate to
adopt the going concern basis in preparing the Financial Statements; after due consideration, the Directors consider that the Company is
able to continue for the foreseeable future.

Financial instruments

The Company's financial risk management objectives and policies, including the policy for currency hedging to reduce the risk of
currency fluctuations, and the exposure to market price risk, credit risk and liquidity risk are set out in Note 10 in the Notes to the
Financial Statements under the heading "Financial risk management".

Independent auditors

PricewaterhouseCoopers CI LLP have indicated their willingness to continue in office. A resolution to re-appoint PricewaterhouseCoopers
CI LLP will be proposed at the forthcoming Annual General Meeting.

Statement under the Disclosure and Transparency Rules 4.1.12

The Directors each confirm to the best of their knowledge that:

* the accounts, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and
* this Annual Report includes a fair review of the development and performance of the business and the position of the Company,
together with a description of the principal risks and uncertainties that they face.

By order of the Board

B. P. Larcombe N. D. Moss
Director Director

10 July 2008

INVESTMENT MANAGER'S REVIEW

Synopsis

Following the successful fundraising in July 2007, which raised �131 million for the Company, its assets remained predominantly in cash
until 1 August 2007. As at
31 March 2008, the Company held 11% of its assets in cash, reflecting Bramdean's current negative view of the global equity markets. The
remainder of the Company's assets are invested in hedge funds, private equity funds and specialty funds.

Performance

Shares in the Company have now been trading for nine months. The period since the Company's admission to the Official List has seen
considerable market turbulence, which has resulted in share price volatility that has been compounded by trading illiquidity in the Shares.
The trading illiquidity is exaggerated by the Company's concentrated shareholder base which is dominated by several institutional and family
office investors. The Company's strategy includes attracting new and diverse investors through future fundraisings it may be able to conduct
and through exploring other strategic opportunities. This would expand the shareholder base and improve liquidity for investors.

Since the Company's Shares were listed on 9 July 2007, most listed alternatives investment companies have seen their share price premium
to net asset value either dramatically reduced or reversed into a wide discount. The Company's Sterling Shares have not escaped this
correction. However, the Company's broad mix of investments within its portfolio has meant that the discount to net asset value of the
Sterling Shares has been relatively resilient compared to the Sterling share class of pure private equity listed fund of funds.

The Company's Board of Directors authorised a modest buy-back of the Company's Sterling Shares shortly before the financial year end in
an attempt to address the discount to net asset value which had widened beyond the 10% level at which the Directors may consider a buy-back
of the Company's Shares. At 31 March 2008, the Company had bought back 125,000 Sterling Shares for cancellation.

Net Asset Value performance since admission
Month Net Asset Value Monthly performance Net Asset Value U.S. Monthly performance
Sterling Shares Sterling Shares Dollar Shares U.S. Dollar Shares
(Sterling
equivalent)
July 2007 96.79p N/A US$ 0.9985 N/A
August 2007 95.29p -1.60% US$ 0.9824 -1.60%
September 2007 97.19p +1.99% US$ 0.9747 -0.78%
October 2007 98.75p +1.61% US$ 0.9988 +2.47%
November 2007 98.09p -0.67% US$ 0.9877 -1.10%
December 2007 99.41p +1.30% US$ 0.9898 +0.20%
January 2008 97.13p -2.30% US$ 0.9650 -2.50%
February 2008 99.16p +2.09% US$ 0.9846 +2.03%
March 2008 98.55p -0.62% US$ 0.9782 -0.65%
April 2008 99.95p +1.42% US$ 0.9883 +1.03%
May 2008 101.86p +1.91% US$ 1.0053 +1.72%

Investment portfolio

The majority of the Transitional and Strategic Hedge Funds portfolios were subscribed to at the beginning of August 2007. The Company
has made some changes to the Transitional portfolio since then, redeeming its holdings in global equity managers in the period December 2007
to 31 March 2008 in line with the deteriorating outlook for equity markets in the wake of the credit crisis.

Redemptions had been completed in three holdings within the Transitional portfolio by 31 March 2008: Third Avenue Value Equity Offshore
Fund Ltd., Oldfield Partners Overstone Global Equity Fund and Brencourt Enhanced Multi-Strategy International Ltd. The proceeds from these
redemptions - the majority of those from Brencourt have been received after the year-end - are being held in cash and will be re-invested in
lower volatility funds over the coming months as opportunities arise in line with the Company's investment policy.

At 31 March 2008, the Company had invested in 15 primary and secondary private equity funds and specialty funds. Investments had been
made in 11 private equity funds and four specialty funds.

At 31 March 2008, the Company had made commitments to private equity and specialty funds amounting to approximately US$209 million, an
amount which represents 81.6% of the Company's total assets and reflects an over-commitment of 1.16X, in line with the Company's stated
investment policy. The total amount that had been drawn-down on the commitments made was approximately US$48 million or 23%. The total
amount of distributions was US$825,921. The Company intends to reinvest the distributions into new private equity and specialty investment
opportunities.

The Company's main exposures are to the Transitional and Strategic Hedge Funds portfolios and cash. At 31 March 2008, around 37% of the
Company's net assets were invested in the Transitional portfolio, 34% in the Strategic Hedge Funds portfolio, 18% in Private Equity and
Specialty funds and 11% in cash.

The cash holding of 11% at 31 March 2008, compared with 6.7% as at 30 September 2007, reflects our increased negative view of the
outlook for global equities since the Company's half-year end.

The reported period was a poor one for most hedge funds. The industry suffered three of the worst months on record in August 2007,
November 2007 and March 2008, with extreme volatility and large swings in sentiment. Credit markets in particular demonstrated volatility
not seen since the Long-Term Capital Management crisis of 1998, causing established correlations and pricing relationships to break down.

The Company's monthly returns were affected by the high volatility in the global equity and credit markets. Overall, it is pleasing to
see the Company's underlying net asset value performing robustly during one of the most volatile periods for financial markets in recent
years.

At 31 March 2008, there were eight funds in the Company's Transitional portfolio. The Strategic Hedge Funds portfolio, which is managed
by RMF, was subscribed to on 1 August 2007 and by 31 March 2008 the portfolio had invested in 12 funds.

Hedging activity

During the financial year the Company has engaged in currency hedging in an attempt to reduce the impact on the Sterling Shares of
currency fluctuations. The U.S. Dollar exposure of the Sterling Shares has been partially managed through the use of forward foreign
exchange contracts. The expense or benefit of such activity has been done at the portfolio level and reflected in the net asset value per
Share over that period. As a result, the net asset values of the two Share classes have differed over time as the differing gains and losses
realised on the hedging contracts have had differing effects on each Share class.

Following the Company's maiden Share conversion which took effect after the year-end on 28 May 2008 and which resulted in an expansion
of the U.S. Dollar Share class, the Company now hedges at the Share class level to reflect the different impact hedging has on each Share
class. Previously, the U.S. Dollar hedge was implemented at the portfolio level, which meant that the U.S. Dollar Share class was hedging a
portion of its U.S. Dollar exposure into Sterling. Different hedge levels are now implemented for the U.S. Dollar and Sterling Share
classes, with the Sterling Share class maintaining the hedge on the U.S. Dollar exposure.

This requires the cash holdings to be separated for the purpose of calculating the monthly net asset value, though the portfolio is
still managed as a single pool of assets. However, the different marks-to-market for the two Share classes will cause the accounting cash
balance for one Share class to differ from the other.

Private Equity Funds Portfolio review

The performance of the Private Equity funds portfolio was positively impacted by its investment in secondaries funds, which are paying
out distributions. There are 11 private equity funds in the portfolio, two of which are secondaries funds and nine of which are primary
funds.

There are 11 private equity funds in the portfolio, two of which are secondaries funds and nine of which are primary funds.

The private equity funds are in the early stages of investing their capital and are going through what is known as the J-Curve. The
J-Curve defines the typical investment returns pattern associated with investing in private equity. It shows how in the early years, private
equity funds generally show low or negative returns as initial investments are made to acquire and make changes to the portfolio businesses;
and as a result of management fees together with start-up costs being drawn from the committed capital. The investment gains usually come in
the later years as the companies in which investments have been made mature and, with the expertise of the general partner, increase in
value. In the later years, partial or complete sales of those companies are also made, resulting in cash flows to investors.

Five of the Company's private equity funds are 2006 vintage; five are 2007 vintage and one is 2008 vintage.

The purpose of the two secondaries funds, both 2006 vintages, in the portfolio is to provide vintage year diversification (their
strategy is to acquire primarily pre-2006 funds across a range of vintages) to the Company's private equity portfolio. They are also
expected to provide distributions to fund future private equity and specialty fund draw-downs. These two funds have had six distributions
between them - two from Coller International Partners V L.P. and four from Greenpark International Investors III L.P. - and these account
for all the private equity and specialty distributions to the Company to date.

The 2006 vintage private equity funds, together with one 2007 fund, Silver Lake Partners III L.P., are all large-cap funds. Each made
substantial investments prior to the July-August 2007 credit crisis when the lending environment was more favourable for private equity
funds.

Since July 2007 the crisis has deeply affected the ability of these large-cap managers to obtain financing at attractive terms. One
manager, Thomas H Lee, believes that it will continue to be difficult to complete larger transactions with leverage, though valuations are
beginning to drop to more attractive levels.

Goldman Sachs Capital Partners VI L.P. also invests in mid-cap transactions globally, while AIG Brazil Special Situations Fund II L.P.
invests in mid-cap transactions in Latin America. The mid-cap private equity market has remained more robust subsequent to the credit
crisis, as it is not as dependent on leverage to generate returns as the large-cap sector. These managers expect to continue their investing
pace as before.

The role of MatlinPatterson Global Opportunities Partners III L.P. and Oaktree OCM Opportunities Fund VII b L.P. in the Company's
portfolio is to provide a counterbalance to the private equity portfolio. Given that they are structured to generate higher returns in more
challenging economic environments, they are expecting to benefit from the current credit crisis.

Pine Brook Capital Partners L.P., which focuses on the energy and financial services sectors, provides the Company with exposure to the
energy commodities boom and is likely also to take advantage of the distressed environment in financial services to acquire assets cheaply.

Thoma Bravo Fund IX L.P., the latest addition to the portfolio, was selected to provide exposure to buy-out opportunities in the lower
mid-cap market in the U.S. via Thoma Bravo's extensive network and long track record in the buy-and-build space.

The Company has also increased its exposure to venture capital through investments in DFJ Athena L.P., Lehman Brothers Venture Partners
V L.P. and Rho Ventures VI L.P. and will continue to do so, but only where the managers are considered to be top-tier, since the Company
believes that investments with top-tier venture capital firms can provide diversification for the portfolio and potentially significant
returns going forward.

The Company has the ability to over-commit to private equity funds in order to manage its cash-flows efficiently. At 31 March 2008, the
Company's commitments to private equity and specialty funds accounted for 81.6% of its assets, representing an over-commitment of 1.16X,
based on the Company's commitments as a share of total net assets. Any over-commitment may be managed through the Company's cash holdings,
through redemptions from the Transitional portfolio and through the use of gearing. The Company may gear by up to 25% of its net asset
value, but has not employed this facility and had no debt at 31 March 2008.

Specialty Funds Portfolio review

The Specialty funds portfolio's performance was negatively impacted by mark-to-market on listed securities and by the nascent nature of
its investments.

The Company had invested in four specialty funds at 31 March 2008. One of these funds is 2006 vintage; the other three funds are 2007
vintage. The role of the Company's Specialty funds is to provide opportunistic diversification from the private equity portfolio.

As with the Company's Private Equity portfolio, funds in the Specialty portfolio are at an early stage of their investment cycle. These
funds are typically investing in industries that are less likely to fluctuate with the economic cycle or where they see the opportunity to
take advantage of dislocated financial markets.

The Company will continue to seek opportunities which provide investors with exposure to investments that may be uncorrelated to
mainstream financial markets, as well as those that offer the potential to benefit from the continuing difficult economic environment.

Transitional Portfolio review

There are eight funds in the Company's Transitional portfolio. The Company's Transitional portfolio is designed to manage the cash the
Company commits to private equity funds but has yet to be drawn-down.

In the period from admission to 31 March 2008, the Transitional portfolio lost 2.20%, inclusive of its cash holdings, gross of the
Company's fees. For the purposes of calculating monthly cash performance, Bramdean takes the lowest Sterling deposit interest rate, rounded
down, offered to the Company during the month. This approach is taken because while the majority of the Company's investments are transacted
and cash is held in U.S. Dollars, these holdings are hedged back into Sterling, allowing the Company to obtain, in effect, Sterling interest
rates on its U.S. Dollar deposits.

The Transitional portfolio was structured with three aspirations; to reflect private equity-type characteristics and returns; to
preserve capital over the medium-term; and to be as liquid as possible so that the Company could meet its capital calls. Initially, to
achieve these aims the portfolio was largely invested in a series of specialist global equity managers, long/short equity and event-driven
managers, as these classes demonstrate the most similar characteristics to private equity. The portfolio also aimed to reduce exposure to
market risk through market neutral and relative value funds. Over the course of the reported period, the decision was taken to reduce the
emphasis on achieving private equity-type returns and to increase the focus on capital preservation. Positions in the two long-only managers
and an event-driven manager were redeemed by 31 March 2008. This includes the Company's holding in Brencourt, although the majority of
proceeds from this redemption were not received until after the Company's year-end and a small proportion will be received in 12 months' time.

The Company held a significant cash balance at the year-end pending re-investment in new investments for the Transitional portfolio.

Strategic Hedge Funds Portfolio review

There are 12 funds in the Strategic Hedge Funds portfolio. The Company has agreed investment parameters with RMF to target a 12% net
annual return with appropriate volatility. The portfolio has a low correlation to both global equities and global bonds and is well
diversified across the five main hedge funds strategies.

In the period from admission to 31 March 2008, the Strategic Hedge Funds portfolio delivered an 11.04% return gross of the Company's
fees.

With a strong market run prior to admission, the initial portfolio was constructed with a significant long volatility bias to guard
against a market correction. This helped minimise the downside during the market downturn in August 2007. In September 2007, the portfolio
delivered a strong return as the managers moved swiftly to profit from emerging opportunities both on the long and the short side of their
portfolios.

From the portfolio's inception on 1 August 2007 to 28 September 2007, the portfolio delivered an approximate gross return of 2.4%. In
the subsequent quarter 1 October 2007 to 31 December 2007, the portfolio delivered an approximate gross return of 6.9%.

The portfolio delivered positive gains in each month, with October accounting for the majority of returns in the third quarter 2007.
Despite a quarter described as "the most difficult in hedge fund history", the portfolio generated a positive return of 1.4% in the period
from 1 January 2008 to 31 March 2008. The portfolio gave back some profits in January 2008, but rebounded strongly in February 2008 and held
onto those gains during March 2008. This was particularly pleasing given the extreme volatility and significant de-leveraging across all
markets during March.

There have been three stand-out performers in the Company's Strategic Hedge Funds portfolio in the reported period: Paulson Advantage
Plus Ltd., D.E. Shaw Oculus International Members Interest and Arcas MAC 79 Ltd. The biggest drag on performance came from Abchurch Europe
Fund Ltd., Atticus European Fund Ltd. and Deephaven Global Multi-Strategy Fund Ltd.

In the period to 31 March 2008, the Company redeemed its holdings in Ivory Offshore Flagship Fund Ltd. and in IKOS Financial Too Fund in
December 2007 and in January 2008 respectively. The Company added Atticus European Fund Ltd. to the portfolio in November 2007.

Portfolio Strategy & Outlook

The period since the Company's admission to the Official List has been one of the most volatile for financial markets in many years.
There are signs that some of the turbulence in markets has diminished, primarily because of the action of central banks. We remain cautious,
however, as many markets (especially money markets) remain dislocated and the impact of the credit crunch on the "real" economy is yet to be
fully felt. Inflation has once again returned to global economies, triggered by substantial rises in food and fuel prices.

The primary risks to the Company's performance relate to its investment in private equity funds which are exposed to the health of the
global economy. We believe that our chosen investments in this area, which include exposure to distressed debt, emerging markets and venture
capital, should perform well even if the global economy slows significantly. We have also taken care to maintain sensible vintage year
diversification in the Private Equity portfolio.

In the Transitional portfolio, we have reduced equity market exposure and increased our cash holdings. It is our intention to increase
our positions in lower risk areas such as asset-backed lending, long-volatility biased funds, relative value and market neutral strategies.

The Strategic Hedge Funds portfolio retains its long volatility bias and this should help it to provide returns that are less correlated
to the wider financial markets. The portfolio's more recent addition of a dedicated short manager has reduced the portfolio's overall equity
beta.

We intend to maintain a reasonable weighting in cash in the short-term, but our long-term strategy is to be fully invested in a broad
range of global alternative investments.

Our focus in regard to additional investments for the Private Equity and Specialty funds portfolios in the new financial year is on
identifying assets with long-term income streams and capital growth, which are lowly-correlated to mainstream bonds and equities. Possible
investments we are looking at include: opportunities in emerging markets, where we can invest at a meaningful level; credit opportunities;
land investment and quality venture capital opportunities with managers who have operated in this sector for many years and which can
demonstrate expertise and consistency of success. We also expect to make at least one direct investment and will consider co-investment
opportunities that may arise.

We envisage future fundraisings in both Share classes, depending on market conditions and the Company's share price relative to its net
asset value per Share. We will seek out opportunities to expand the Company and increase shareholder value.

Portfolio Analysis

Commitments to Private Equity and Specialty funds at 31 March 2008

Private Equity & Specialty Private Equity & Commitment in local Date of Admission Fund Vintage
Funds Specialty Funds currency
Focus
Private Equity & Specialty Private Equity & Commitment in local Date of Admission Fund Vintage
Funds Specialty Funds currency
Focus
Terra Firma Capital Partners Europe-Large Buy-out EUR15 million 26 January 2007 2006
III L.P.
Goldman Sachs Capital Partners Global-Mega Buy-out US$15 million 15 March 2007 2006
VI L.P.
Greenpark International Secondaries EUR14.6 million 29 March 2007 2006
Investors III L.P.
Coller International Partners Secondaries US$15 million 13 April 2007 2006
V L.P.
Thomas H. Lee Parallel Fund VI US-Mega Buy-out US$15 million 27 April 2007 2006
L.P.
Silver Lake Partners III L.P. Global - Large US$15 million 18 May 2007 2007
Buy-out
MatlinPatterson Global Global - distressed US$10 million 28 June 2007 2007
Opportunities Partners III
L.P.
SVG Strategic Recovery Fund II Activist UK �7.5 million 21 May 2007 2006
L.P. small-cap
AIG Brazil Special Situations Latin America - US$10 million 10 August 2007 2007
Fund II L.P. Special situations
Lehman Brothers Venture US - mid-stage US$12.5 million 16 July 2007 2007
Partners V L.P. Venture capital
Oaktree OCM Opportunities Fund Global - distressed US$15 million 19 September 2007 2007
VII b L.P. debt
Pine Brook Capital Partners Global - growth US$10 million 1 October 2007 2007
L.P. equity
DFJ Athena L.P. Venture capital - US$10 million 20 December 2007 2007
Korean companies
Rho Ventures VI L.P. US Venture capital - US$10 million 21 December 2007 2008
life sciences and
technology
Thoma Bravo Fund IX L.P. US - growth equity US$10 million 27 March 2008 2008

Top Ten Holdings
Top 10 holdings as at 31 August 2007

The majority of the portfolio was invested from 1 August 2007. As a consequence, the book costs and market values were first reported
fully in the NAV as at 31 August 2007. Any differences in book costs between the two periods result from mandatory corporate actions
implemented by the underlying hedge fund manager, such as unit class switching (more commonly known as roll-ups).

Top 10 Holdings as at 31 March 2008

Fund name Strategy Book cost USD Market value USD Weighting %
Platinum Grove Contingent Relative Value 16,300,000 15,615,889 6.1
Capital Offshore Fund Ltd.
York European Opportunities Equity Hedged 14,741,050 14,795,498 5.8
Unit Trust
Enso Global Equities Fund Ltd. Market Neutral 14,330,994 14,576,662 5.7
Paulson Advantage Plus Ltd. Special Situations 8,799,673 11,969,996 4.7
Defender Ltd. Relative Value 10,200,000 10,712,158 4.2
D.E. Shaw Oculus International Global Trading 8,500,000 10,713,647 4.2
Members Interest
Terra Firma Capital Partners Europe-Large Buy-out 9,220,802 9,972,118 3.9
III L.P.
Brencourt Enhanced Market Neutral 11,400,001 9,012,538 3.5
Multi-Strategy International
Ltd.
Greenpark International Global Secondaries 7,368,096 9,002,347 3.5
Investors III L.P. Private Equity
Transactions
Rye Select Broad Market XL Derivative Arbitrage 8,500,000 8,936,835 3.5
Portfolio Ltd.
TOTAL 109,360,616 115,307,688 45.1

BALANCE SHEET
AS AT 31 MARCH, 2008

31 March 2008 31 March 2007
Notes US$ US$
Assets
Financial assets at fair value through 4 229,477,844 -
profit or loss
Cash and cash equivalents 27,948,491 -
Trade and other receivables 6 1,098,405 4
Total assets 258,524,740 4

Liabilities
Trade and other payables 7 2,123,835 67,274
Borrowings 8 - 450,244
Total liabilities 2,123,835 517,518

Net assets 256,400,905 (517,514)

Represented by:

Shareholders' funds and reserves
Share capital 11 4 4
Share premium 11 259,186,780 -
Retained deficit 15 (2,785,879) (517,518)
Total shareholders' funds and reserves 256,400,905 (517,514)

Net asset value per Share
U.S. Dollar Shares USD 0.9782 -
Sterling Shares GBP 0.9855 -

INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2008

Year ended Period ended
31 March 2008 31 March
2007

Notes US$ US$
Income
Net income from investments in 1,202,849 -
limited partnerships and
directly held investments
Net interest income from cash 163,995 -
and cash equivalents
Net changes in fair value of 5 2,634,567 (447,434)
financial assets at fair value
through profit or loss
Total income 4,001,411 (447,434)

Expenses
Management fees 9 2,829,902 -
Legal and professional fees 1,652,436 26,381
Loan facility fee 871,403 -
Directors' fees 9 305,571 2,307
Printing and communication 173,671 -
costs
Administration fees 9 94,559 4,200
Custody fees 9 90,656 -
Audit fees 61,500 29,421
Interest on loan 53,097 2,953
Brokerage fees 46,125 -
Directors' and officers' 41,674 -
insurance
Travelling expenses 25,625 -
Bank charges 23,553 -
Formation expenses - 4,822
Total operating expenses 6,269,772 70,084

Net loss from operations (2,268,361) (517,518)

The Company had no other gains or losses other than the net loss from operations
disclosed in this statement.

All income and expenditure relates to continuing activities.

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2008

Share
Capital
and Share Retained
Notes Premium Deficit Total
US$ US$ US$
Net assets at 5 January 2007 - - -
Issue of Shares 4 - 4
Net loss from operations - (517,518) (517,518)
Net assets at 31 March 2007 4 (517,518) (517,514)

Net assets at 1 April 2007 4 (517,518) (517,514)
Issue of Shares 11 265,177,652 - 265,177,652
Costs of Share issue (5,789,235) - (5,789,235)
Repurchase of Shares (201,637) - (201,637)
Net loss from operations - (2,268,361) (2,268,361)
Net assets at 31 March 2008 259,186,784 (2,785,879) 256,400,905

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2008

Year ended Period ended
31 March 2008 31 March
2007
Notes US$ US$
Cash flows from operating
activities
Loss for the year / period (2,268,361) (517,518)
Adjustments for unrealised (gains) 5 (7,023,559) 435,570
/ losses on investments
Increase in trade and other 856,561 31,539
payables
Increase in trade and other (128,792) -
receivables
Purchase of investments (336,095,667) (435,570)
Proceeds from sale of investments 113,871,773 -
Net cash outflows from operating (230,788,045) (485,979)
activities

Cash flows from financing
activities
Proceeds from loans 8 - 450,244
Financing from Bramdean Asset - 35,735
Management LLP
Repayment of loan 8 (450,244) -
Issue of Shares 11 265,177,652 -
Costs relating to issue of Shares 11 (5,789,235) -
Repurchase of Shares 11 (201,637) -
Net cash inflows from financing 258,736,536 485,979
activities

Net change in cash and cash equivalents for the 27,948,491 -
year / period

Cash and cash equivalents at beginning of the - -
year / period

Cash and cash equivalents at end of 27,948,491 -
the
year / period

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2008

1. General information
Bramdean Alternatives Limited (the "Company") was incorporated with limited liability and registered in Guernsey on 5 January 2007. The
Company*s U.S. Dollar and Sterling Shares were listed on the London Stock Exchange on 9 July 2007 whereupon the Company became a
closed-ended investment company.
2. Significant accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the
Company*s Financial Statements.
a) Basis of accounting
The Financial Statements are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB), and interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC).
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that
affect the application of policies and the reported amounts of assets, liabilities, income and expenditure. Actual results may differ from
these estimates.
The particular accounting policies adopted in the presentation of the Financial Statements are set out below. These policies have been
consistently applied.
After the first time adoption of IFRS the following standards have been applied consistently in dealing with items which are considered
material to the Company's Financial Statements:
* IAS 1 Presentation of the Financial Statements
* IAS 7 Statement of Cash Flows
* IAS 8 Accounting Policies, Changes in Accounting Estimates
and Errors
* IAS 10 Events after the Reporting Period
* IAS 14 Segment Reporting
* IAS 18 Revenue Recognition
* IAS 21 The Effects of Changes in Foreign Exchange Rates
* IAS 24 Related Party Disclosures
* IAS 32 Financial Instruments: Presentation
* IAS 36 Impairment of Assets
* IAS 37 Provisions, Contingent Liabilities and Contingent Assets
* IAS 39 Financial Instruments: Recognition and Measurement
* IFRS 7 Financial Instruments: Disclosures

The following standards, amendments and interpretations to existing standards have been published and are mandatory for accounting
periods beginning on or after 1 January 2008 or later periods, but are not relevant for the Company's operations and have not yet been
adopted in the financial statements:
� IAS 1 Presentation of the Financial Statements (Revised)
(effective from 1 January 2009)
� IAS 23 Borrowing Costs (Amendment) (effective from 1 January
2009)
� IFRS 8 Operating Segments (effective from 1 January 2009)
� IFRIC 12 Service Concession Agreements
(effective from 1 January 2008)
� IFRIC 13 Customer Loyalty Programme
(effective from 1 July 2008)
� IFRIC 14 IAS 19, The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction
(effective from 1 January 2008)

b) Financial instruments
i) Classification
A financial asset or financial liability at fair value through profit or loss is a financial asset or liability that is classified as
held-for-trading or designated at fair value through profit or loss on inception. Forward contracts in a receivable position (positive fair
value) are reported as financial assets at fair value through profit or loss. Forward contracts in a payable position (negative fair value)
are reported as financial liabilities at fair value through profit or loss.

Financial assets that are not at fair value through profit or loss include certain balances due from brokers and accounts receivable.
Financial liabilities that are not at fair value through profit or loss include certain balances due to brokers and accounts payable.

ii) Recognition
The Company recognises financial assets and financial liabilities on the date it becomes party to the contractual provisions of the
investment. Purchases and sales of financial assets and financial liabilities are recognised using trade date accounting. From trade date,
any gains and losses arising from changes in fair value of the financial assets or financial liabilities are recorded in the Income
Statement.

iii) Forward currency contracts
The Company enters into forward currency contracts as a way of managing foreign exchange risk for specific Share classes. Gains and
losses from these contracts are allocated solely to the corresponding Share classes. Forward foreign currency exchange contracts are marked
to market at the applicable translation rates and any resulting unrealised gains or losses are recorded in the Income Statement. The Company
records realised investment gains or losses upon settlement of the forward currency contracts.

Forward currency contracts are offset and the amount reported in the Balance Sheet when there is a legally enforceable right to offset
the recognised amounts and there is intention to settle on a net basis, or realise the asset and sell the liability simultaneously. Forward
currency contracts result in credit exposure to the counterparty. The fair value of forward currency contracts is based on the price at
which a new forward currency contract of the same notional value, currency and maturity could be effected at the close of business as
provided from a third party pricing source or dealer.
iv) Fair value measurement principles
Financial assets and liabilities are initially recorded at their transaction price and then measured at fair value subsequent to initial
recognition. Gains and losses arising from changes in the fair value of the 'financial assets or financial liabilities at fair value through
profit or loss' category are presented in the Income Statement in the period in which they arise.

Financial assets classified as receivables are carried at cost less impairment losses, if any. Financial liabilities, other than those
at fair value through profit or loss, are measured at amortised cost using the effective interest rate method.
v) Investees
The Company's investments in investees are subject to the terms and conditions of the respective investee's offering documentation. The
investments in the investees are valued based on the reported net asset value of such Shares or interests as determined by the administrator
or general partner of the investee and as adjusted by the Investment Manager so as to ensure that investments held at fair value through
profit or loss are carried at fair value. The reported net asset value is net of applicable fees and expenses of the investee and the
underlying investments held by each investee are accounted for, as defined in the respective investee's offering documentation. The net
asset values of investees reported by the administrators or general partners may subsequently be adjusted when such results are subject to
audit and the audit adjustments may be material to the Company.

vi) Cash and cash equivalents
Cash and cash equivalents consist principally of cash on hand, demand deposits and short term, highly liquid investments with maturities
of three months or less. Cash and cash equivalents are valued at amortised cost, which approximates fair value.

c) Interest income
Interest income on cash and cash equivalents is accrued using the effective interest method.
d) Realised and unrealised gains and losses
Realised gains and losses arising on the disposal of investments are calculated by reference to the proceeds received on disposal and
the average cost attributable to those investments, and are recognised in the Income Statement. Unrealised gains and losses on investments
held at fair value through profit or loss are also recognised in the Income Statement.
e) Foreign currency
i) Functional and presentation currency
The Company aims to make investments primarily denominated in U.S. Dollars and to make returns to investors in U.S. Dollars. The Board
of Directors considers U.S. Dollars as the currency that most faithfully represents the economic effects of the underlying transactions,
events and conditions. The Financial Statements are presented in U.S. Dollars, which is the Company's functional and presentation currency.

ii) Transactions and balances
Foreign currency transactions are translated into the functional and presentation currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities denominated in foreign currencies other than U.S. Dollars are recognised in the
Income Statement.

Translation differences on non-monetary financial assets and liabilities such as investments at fair value through profit or loss are
recognised in the Income Statement within the fair value net gain or loss.

f) Expenses
All expenses are recognised in the Income Statement on an accruals basis.

g) Issue expenses
The expenses which are directly incurred only on the issue of Shares are written off against the share premium account.

h) Cash flow statement
For the purpose of the Cash Flow Statement, the Company considers balances due to and from banks as cash and cash equivalents.

Taxation
The Company is domiciled in Guernsey. The Company is exempt from paying income tax in Guernsey. The Company is registered for taxation
purposes in Guernsey where it pays an annual exempt status fee which is currently �600 under The Income Tax (Exempt Bodies) (Guernsey)
Ordinances 1989.
* Financial assets at fair value through profit or loss
31 March 2008 31 March 2007
US$ US$
Cost at beginning of the year 435,570 -
Additions 337,295,667 435,570
Disposals (111,917,150) -
Realised losses on investments (2,924,232) -
Cost at end of the year 222,889,855 435,570
Unrealised gains / (losses) on 6,587,989 (435,570)
investments
Market value at end of the year 229,477,844 -

5. Net changes in fair value of financial assets at fair value through profit or loss
The net realised and unrealised investment gain or loss from trading in financial assets shown in the Income Statement for the year
ended 31 March 2008 is analysed as follows:

31 March 2008 31 March 2007
US$ US$
Movement in unrealised gains / (losses) on 7,023,559 (435,570)
investments
Realised losses on investments (2,924,232) -
Net losses on foreign exchange (1,464,760) (11,864)
2,634,567 (447,434)

6. Trade and other receivables
31 March 2008 31 March 2007
US$ US$
Prepayments 110,782 -
Accrued interest 18,014 -
Other receivables 969,609 4
1,098,405 4

7. Trade and other payables
31 March 2008 31 March 2007

US$ US$
Capital calls payable 1,200,000 -
Management fees 320,902 -
Unrealised loss on forward foreign exchange 68,121 -
contract
Administration fees 10,698 -
Custody fees 10,209 -
Financing from Bramdean Asset Management LLP - 35,735
Sundry expenses 513,905 31,539
2,123,835 67,274

At 31 March 2008, the Company had an outstanding forward foreign exchange contract with a maturity date of 4 April 2008:
Sold (U.S. Dollars) 150,200,000 -
Bought (Sterling) �75,690,385 at 1.9385 (150,131,879) -
68,121 -

8. Borrowings
31 March 2008 31 March 2007
US$ US$
Bank of Scotland - 450,244

9. Significant agreements and related parties

Investment management
The Company has appointed Bramdean Asset Management LLP as its Investment Manager. The Investment Manager is paid by the Company a
monthly fee equal to one-twelfth of 1.5% of the net asset value of the Company (before deduction of any performance fee). The fee is
calculated and accrued as at the last business day of each month and is paid monthly in arrears.
Total fees payable to the Investment Manager for the year ended 31 March 2008 amounted to US$2,829,902 (period ended 31 March 2007 -
nil) of which US$320,902 was outstanding at 31 March 2008 (31 March 2007 - nil).
In addition, the Investment Manager is entitled to a performance fee of 10% with respect to each class of Shares based on the total
increase in the net asset value of the relevant class at the end of each performance year (ending 31 March each year). For a performance fee
to be paid, the Investment Manager must achieve returns in excess of 8% (subject to a high watermark). No performance fee has been earned in
the year ended 31 March 2008 (31 March 2007 - nil).
Administration
The Administrator is paid by the Company a fee of not greater than 0.06% per annum of the net asset value of the Company, subject to a
minimum annual fee of �50,000.
Total fees payable to the Administrator for the year ended 31 March 2008 amounted to US$94,559 (31 March 2007 - US$4,200) of which
US$10,698 was outstanding at 31 March 2008 (31 March 2007 - nil).
Custody
The Custodian is paid by the Company a fee of not greater than 0.06% per annum of the net asset value of the Company, subject to a
minimum annual fee of �10,000.
Total fees payable to the Custodian for the year ended 31 March 2008 amounted to US$90,656 (31 March 2007 - nil) of which US$10,209 was
outstanding at 31 March 2008 (31 March 2007 - nil).
Transactions with Directors
The Chairman of the Board receives an annual fee of �75,000; the remaining four Directors each receive an annual fee of �27,000, with
the Chairman of the Audit Committee receiving an additional �5,000 per annum with effect from 1 April 2008. Directors' fees are paid
quarterly in advance. Total fees payable for the year ended 31 March 2008 amounted to US$305,571 (31 March 2007 - US$2,307). No fees were
outstanding at 31 March 2008 (31 March 2007 - nil).
As at 31 March 2008, the following Directors had a beneficial ownership of Shares, representing the following percentage interest in the
Company's voting rights and net assets:

B.P. Larcombe 50,000 Sterling Shares 0.04%
M.P.S. Barton 10,000 Sterling Shares 0.01%
M.D. Buckley 100,000 U.S. Dollar Shares 0.04%
As at 31 March 2007, the Directors had no beneficial interest in the Company's share capital.

10. Financial risk management
The Company maintains positions in a variety of investees and forward currency contracts as determined by its investment management
strategy.

The investees' own investing activities expose the Company to various types of risks that are associated with the financial investments
and markets in which they invest. The significant types of financial risks, to which the Company is exposed are market price risk, credit
risk and liquidity risk.

Asset allocation is determined by the Company's Investment Manager which manages the allocation of assets to achieve the investment
objectives as detailed in the Directors' Report on pages 4-5. Achievement of the investment objectives involves taking risks. The Investment
Manager exercises judgement based on analysis, research and risk management techniques when making investment decisions. Divergence from
target asset allocations and the composition of the portfolio is monitored by the Board.
The nature and extent of the financial investments outstanding at the year end date and risk management policies employed by the Company
are detailed below:

a) Capital management policies and procedures
The Company's capital management objectives are:
* to ensure the Company's ability to continue as a going concern
* to provide an adequate return to shareholders

The Company seeks to achieve these objectives by adopting the investment objectives set out on pages 4-5.
b) Market price risk
The potential for changes in the fair value of the Company's investment portfolio is referred to as market price risk. Commonly used
categories of market price risk include currency risk, interest rate risk and other price risk.

� Currency risk may result from exposure to changes in spot prices, forward prices and volatilities of currency exchange rates.
� Interest rate risk may result from exposures to changes in the level, slope and curvature of the various yield curves, the
volatility of interest rates and credit spreads.
� Other price risk is the risk that the value of an instrument will fluctuate as a result of changes in market prices other than
those arising from currency risk or interest rate risk.

i) Market price risk management
The Company's unlisted equity securities are susceptible to market price risk arising from uncertainties about future values of the
investment securities. The Investment Manager provides the Company with investment recommendations that are consistent with the Company's
objectives.

The valuation method of these investments is described within the accounting policies. The nature of some of the Company's investments,
which are unquoted investments in private equity funds, means that the investments are valued by the Investment Manager on behalf of the
Company after due consideration of the most recent available information from the underlying investments as adjusted where relevant by the
Directors.
Market price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. The investments of the Company are subject to normal market fluctuations and the risks inherent with investment in financial
markets. The maximum risk resulting from financial instruments held by the Company is determined by the fair value of the financial
instruments. The Investment Manager moderates this risk through careful selection of funds managed by experienced fund managers, which meet
the investment objectives outlined on pages 4-5; the Company's market price risk is managed through diversification of the investment
portfolio. Through a variety of analytical techniques, the Investment Manager monitors, on a daily basis, the Company's overall market
positions, as well as its exposure to market price risk.
By back testing the investment portfolio as it was invested at 31 March 2008 over the previous 36 months and using appropriate equity
market indices as proxies for the drawn down private equity commitments, the Investment Manager has estimated the volatility and sensitivity
of the portfolio. Looking back over a twelve month period the portfolio would have had an annualised volatility (calculated as the standard
deviation of returns) of 6.4%. The sensitivity of the portfolio to equity markets (as expressed by the portfolio's beta to the MCSI World
Index) is circa 0.41. This means that with all other variables held constant, the market value of the investment portfolio would move by
around 41% of any move in global equity markets. Over the three years to 31 March 2008, the MCSI World Index has moved by an average of
11.5% per annum. If this movement were repeated in the next twelve months, the risk modelling would indicate a movement of 4.7% in the
market value of the investment portfolio, which would result in an increase or decrease in the net asset value of the Company of approximately US$11 million (2007 - US$ nil).

ii) Currency risk
The Company has assets and liabilities denominated in currencies other than U.S. Dollars, its functional currency. The Company is
therefore exposed to currency risk, as the value of the assets and liabilities denominated in other currencies fluctuates due to changes in
exchange rates. The Company may from time to time engage in currency hedging in an attempt to reduce the impact on the Sterling Shares of
currency fluctuations. The U.S. Dollar exposure of the Sterling Shares is managed through the use of forward foreign exchange contracts
although there can be no guarantee that the management of currency risk and exposure will be successful. As a result, the net asset values
of the different classes of Share may differ over time as the differing gains and losses realised on the hedging contracts are applied to
the relevant class of Share. During the six months up to 31 March 2008, the value of Sterling decreased by 2.64% against the U.S. Dollar. At
31 March 2008, a similar movement in the value of Sterling against the U.S. Dollar would, with all other variables held constant, increase or decrease the net asset value of the Company by
approximately US$1.7 million (2007 - US$ nil).
Following the Company's maiden Share conversion which took effect after the year-end on 28 May 2008 and which resulted in an expansion
of the U.S. Dollar Share class, the Company now hedges at the Share class level to reflect the different impact hedging has on each Share
class.
During the six months up to 31 March 2008, the value of the Euro increased by 9.67% (2007 - 5.10%) against the U.S. Dollar. At 31 March
2008, a similar movement in the value of the Euro against the U.S. Dollar would, with all other variables held constant, increase or
decrease the net asset value of the Company by approximately US$1.8 million (2007 - US$23,000). The table below summarises the Company's
exposure to currency risks at the year / period end:
Assets US$ GBP EUR Total
Financial assets at fair value 206,130,733 4,372,646 18,974,465 229,477,844
through profit or loss
Cash and short-term notes 15,326,335 12,622,554 (398) 27,948,491
Other assets and liabilities (963,321) (62,109) - (1,025,430)
Total at 31 March 2008 220,493,747 16,933,091 18,974,067 256,400,905

Assets US$ GBP EUR Total
Other assets and liabilities (67,270) - (450,244) (517,514)
Total at 31 March 2007 (67,270) - (450,244) (517,514)

iii) Interest rate risk
The Company is exposed to interest rate risk. The Company invests primarily in private equity and hedge funds that are non interest
bearing investments, primarily subject to market price risk. Investees may invest in fixed income securities and interest rate swap
contracts; interest receivable on bank deposits or payable on loan positions will be affected by fluctuations in interest rates. Changes to
prevailing interest rates or changes in expectations of future rates may result in an increase or decrease in the value of the securities
held. In general, if interest rates rise, the value of fixed income securities will decline. A decline in interest rates will, in general,
have the opposite effect.
The majority of the Company's financial assets and liabilities are non interest bearing. As a result, the Company is not, in that
respect, subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates. Any excess cash and
cash equivalents are invested at short-term market interest rates. As at 31 March 2008 the Company's interest bearing assets, all of which
receive or pay interest at a variable rate, were as follows:
31 March 2008 31 March 2007
US$ US$
Cash and cash equivalents 27,948,491 -
Loan payable - (450,244)
27,948,491 (450,244)

iv) Other price risk
Other price risk is the risk that the value of the investees' financial investments will fluctuate as a result of changes in market
prices, other than those arising from currency risk or interest rate risk whether caused by factors specific to an individual investment,
its issuer or any factor affecting financial investments traded in the market.
As the Company's investments are carried at fair value with fair value changes recognised in the Income Statement, all changes in market
conditions will directly affect the overall net asset value.
The investments are valued based on the latest available unaudited price of such Shares or interests as determined by the administrator
or general partner of the investees. Furthermore, valuations received from the administrator or general partner of the investees may be
estimates and such values can generally be used to calculate the net asset value of the Company. Such estimates provided by the
administrators or general partners of the investees may be subject to subsequent revisions which may not be restated for the purpose of the
Company's final month-end net asset value.
Currency, interest rate and other price risk are managed by the Company's Investment Manager as part of the integrated market price risk
management processes.
c) Credit risk
The Company takes on exposure to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when due. The
Investment Manager has adopted procedures to reduce credit risk related to the Company's dealings with counterparties and investees. Before
transacting with any counterparty or investee, the Investment Manager or its affiliates evaluate both creditworthiness and reputation by
conducting a credit analysis of the party, its business and its reputation. The credit risk of approved counterparties and investees is then
monitored on an ongoing basis, including periodic reviews of financial statements and interim financial reports as needed. Impairment
provisions are provided for losses, if any, that have been incurred by the balance sheet date.
The risk of default is considered to be limited as presently there are no investments in the portfolio where amounts are paid to or
received from parties, other than directly with the actual investment fund via the call notices received pursuant to the subscription
agreements.
At 31 March 2008 and 2007, the following financial assets were exposed to counterparty credit risk: investments in investees, unrealised
gains and losses on foreign currency contracts, cash and cash equivalents and other receivables. The carrying amounts of financial assets
best represent the maximum credit risk exposure at the year end date. There were no significant concentrations of credit risk at 31 March
2008 or 31 March 2007.
The Company enters into foreign currency contracts with counterparties whose credit ratings are all investment graded. Ratings for
securities, as rated primarily by Moody's, that subject the Company to credit risk at 31 March 2008 are noted below:

Credit ratings for short-term notes 31 March 2008
BNP Paribas Group Aa1
HBOS Aa3
Royal Bank of Canada Aaa

d) Liquidity risk
The Company's financial instruments include investments in unlisted securities, which are not traded in an organised public market and
may generally be illiquid. As a result, the Company may not be able to liquidate quickly its investments in these instruments at an amount
close to fair value in order to respond to its liquidity requirements or to specific events.
The Company's outstanding commitments are detailed in Note 12. When an over-commitment approach is followed, the aggregate amount of
capital committed by the Company to investments at any given time may exceed the aggregate amount of cash that the Company has available for
immediate investment, so there is a risk that the Company might not be able to meet capital calls when they fall due. To manage this risk,
the Company holds an appropriate amount of its assets in cash and cash equivalents together with a selection of readily realisable
investments. In planning the Company's commitments, the Investment Manager takes into account expected cash flows to and from the portfolio
of fund interests and, from time to time, may use borrowings to meet draw downs; these expected cash flows are monitored against actual draw
downs and distributions on a monthly basis to assess the level of additional commitments that can be made and how much cash needs to be kept
on hand. The Directors have resolved that the Company may borrow up to 25% of its net asset value for short-term or long-term purposes.
The table below sets forth the liquidity risk of the Company as at 31 March 2008. All liabilities represent amounts falling due within
twelve months. Amounts due within twelve months equal their carrying balances.

Financial liabilities Less than one year Less than one year
31 March 2008 31 March 2007
US$ US$
Trade and other 2,123,835 67,274
Payables
Borrowings - 450,244
2,123,835 517,518

11. Share capital and share premium
31 March 2008 31 March 2007
Share capital US$ US$
Management Shares
Authorised: 10,000 Management Shares of �1.00
each
Issued: 2 Management Shares of �1.00 each 4 4
4 4

Shares
Authorised: unlimited number of shares of no
par value

Share premium
issued and fully paid
130,142,311 Sterling Shares of no par value 263,392,652 -
1,785,000 U.S. Dollar Shares of no par value 1,785,000 -
Costs of Share issue (5,789,235) -
125,000 Sterling Shares repurchased (201,637) -
Balance as at 31 March 2008 259,186,780 -

The authorised share capital of the Company on incorporation was �10,000 divided into10,000 shares of �1.00 each. On 31 May 2007 a
special resolution was passed by the Company to increase the share capital to an unlimited number of participating shares of no par value
("Shares"), which, upon issue, the Directors were able to designate as Sterling Shares, U.S. Dollar Shares or otherwise as determined by the
Directors at the time of issue, and 10,000 Management Shares of �1.00 each.
The Shares were issued on 4 July 2007 as a result of the Company announcing the placing and offer for subscription of its Shares on 6
June 2007.
The rights attaching to the Shares are as follows:
a) On 30 April and 31 October of each year holders of Shares may elect to convert some or all of their Shares of one currency class into
Shares of another currency class.
b) Subject to any restrictions set out in the Company*s Articles of Association, each U.S. Dollar Share carries one vote per Share and each
Sterling Share carries 2.0194 votes per Share at a general meeting.
c) The capital and assets of the Company shall on a winding-up be divided (following payment to the holders of Management Shares of sums up
to the nominal value paid up thereon) amongst the holders of Shares on the basis of the capital and assets attributable to the respective
classes of Shares at the date of winding-up and amongst the holders of Shares of a particular class pro rata according to their holdings of
Shares in that class.

12. Commitments
The table below summarises commitments to the underlying investments of the Company.
Total Commitments Outstanding
Commitments
Currency US$ Currency US$
Terra Firma Capital Partners EUR 15,000,000 23,768,401 EUR 8,075,817 12,796,617
III L.P.
Coller International Partners 15,000,000 12,643,546
V L.P.
Goldman Sachs Capital Partners 15,000,000 10,797,762
VI L.P.
Greenpark International EUR 14,600,000 23,134,577 EUR 9,132,020 14,470,234
Investors III L.P.
Thomas H. Lee Parallel Fund VI 15,000,000 6,420,581
L.P.
Silver Lake Partners III L.P. 15,000,000 13,338,657
SVG Strategic Recovery Fund II GBP 7,500,000 14,906,388 GBP 5,015,303 9,968,007
L.P.
MatlinPatterson Global 10,000,000 7,137,259
Opportunities Partners III
L.P.
Lehman Brothers Venture 12,500,000 10,857,867
Partners V L.P.
AIG Brazil Special Situations 10,000,000 9,806,806
Fund II L.P.
Oaktree OCM Opportunities Fund 15,000,000 15,000,000
VII b L.P.
Pine Brook Capital Partners 10,000,000 9,016,923
L.P.
DFJ Athena L.P. 10,000,000 7,698,171
Rho Ventures VI L.P. 10,000,000 10,000,000
Thoma Bravo Fund IX L.P. 10,000,000 10,000,000
At 31 March 2008 209,309,366 159,952,430

13. Net asset value
The net asset value of each Sterling Share is determined by dividing the net assets of the Company attributable to the Sterling Shares
of �128,126,987 (US$254,654,739) by 130,017,311, being the number of Sterling Shares in issue at the year end.
The net asset value of each U.S. Dollar Share is determined by dividing the net assets of the Company attributable to the U.S. Dollar
Shares of $1,746,162 by 1,785,000, being the number of U.S. Dollar Shares in issue at the year end.
14. Controlling party
In the opinion of the Directors on the basis of shareholdings advised to them, the Company has no immediate or ultimate controlling
party.
15. Reserves
31 March 2008 31 March 2007
US$ US$
Opening reserves (517,518) -
Change in net assets from operations (2,268,361) (517,518)
Closing reserves (2,785,879) (517,518)

Reserves attributable to Management Shares - (517,518)
Reserves attributable to Sterling Shares (2,786,010) -
Reserves attributable to U.S. Dollar Shares 131 -
(2,785,879) (517,518)

16. Business segments and geographical analysis

For management purposes the Company has one sole principal activity and that is to make investments. The investment objective of the
Company is to generate long-term capital gains by investing in a diversified portfolio of private equity funds, hedge funds and other
specialty funds. As this is the primary and sole business activity, the results disclosed in the balance sheet and income statement are
sufficient to satisfy the reporting requirements of IAS 14.
The geographical allocation of investments at 31 March 2008 was as follows:

Global 38.5%
North America 30.9%
Europe 26.4%
Asia & Other 4.2%

17. Event after the reporting year - Share conversion
On 28 May 2008, certain shareholders in the Company owning Sterling Shares elected to switch into U.S. Dollar Shares on the basis of the
net asset values of the Company's Shares as at 30 April 2008. As a result of the switch 32,055,469 Sterling Shares were converted into
64,203,142 U.S. Dollar Shares.

SCHEDULE OF INVESTMENTS
AS AT 31 MARCH 2008
Fair
Nominal Value
Holding US$ % of NAV
Investments (Cost USD
$179,655,268)
Hedge Funds
Aarkad Plc 5,152,395 7,713,135 3.01
Abchurch Europe Fund Ltd. 75,570 7,223,956 2.82
Arcas MAC 79 Ltd. 4,464 5,060,902 1.97
Atticus European Fund Ltd. 6,097 2,332,274 0.91
Brencourt Enhanced 10,702 9,012,538 3.52
Multi-Strategy International
Ltd.
D.E. Shaw Oculus International 8,500,000 10,713,647 4.18
Members Interest
Deephaven Global 2,170 8,100,087 3.16
Multi-Strategy Fund Ltd.
Defender Ltd. 10,136 10,712,158 4.18
Enso Global Equities Fund Ltd. 12,371 14,576,662 5.68
Hard Assets 2X Fund Ltd. 5,403 8,774,580 3.42
Kaiser Trading Diversified 2X 2,944 3,813,501 1.49
Segregated Portfolio
Kei Ltd. 3,323 5,039,807 1.97
King Street Capital Ltd. 15,812 5,758,756 2.25
Lansdowne UK Equity Fund 25,927 8,399,218 3.28
Oak Hill Credit Alpha Fund 5,017 6,944,528 2.71
(Offshore) Ltd.
Paulson Advantage Plus Ltd. 35,476 11,969,996 4.66
Platinum Grove Contingent 16,300 15,615,888 6.08
Capital Offshore Fund Ltd.
Renaissance Institutional 8,500,000 7,686,202 3.00
Equities Fund International
L.P.
Rye Select Broad Market XL 7,673 8,936,835 3.49
Portfolio Ltd.
York Asian Opportunities Unit 7,739 8,506,404 3.32
Trust
York European Opportunities 1,012,343 14,795,498 5.76
Unit Trust
181,686,572 70.86

Investments (Cost Investment Fair Value US$ % of NAV
US$43,234,587) Called/Cost
Private Equity and Specialty
AIG Brazil Special Situations 62,629 69,617 0.03
Fund II L.P.
Coller International Partners 1,950,000 2,356,454 0.92
V L.P.
DFJ Athena L.P. 2,425,000 2,301,829 0.90
Goldman Sachs Capital Partners 4,650,000 4,202,237 1.64
VI L.P.
Greenpark International EUR5,230,872 9,002,347 3.51
Investors III L.P.
Lehman Brothers Venture 1,524,657 1,524,657 0.59
Partners V L.P.
MatlinPatterson Global 2,908,865 2,862,741 1.12
Opportunities Partners III
L.P.
Pine Brook Capital Partners 888,658 888,658 0.35
L.P.
Silver Lake Partners III L.P. 1,607,988 1,662,808 0.65
SVG Strategic Recovery Fund II �3,012,302 4,372,646 1.71
L.P.
Terra Firma Capital Partners EUR6,538,348 9,972,118 3.89
III L.P.
Thomas H. Lee Parallel Fund VI 7,019,614 8,575,160 3.34
L.P.
47,791,272 18.65

Total Investments 229,477,844 89.51

Fair Value
Cost US$ % of NAV
Short-Term Notes
BNP Paribas Group 11,901,275 14,510,582 5.65
HBOS 7,642,517 10,252,051 4.00
Royal Bank of Canada 969,502 1,926,904 0.75
26,689,537 10.40

Cash 1,258,954 0.49
Other assets less liabilities (1,025,430) (0.40)
233,524 0.09

Total 256,400,905 100.00

Management and Administration
Directors
B. P. Larcombe - Chairman (appointed 30 May 2007)
C. N. Anquillare, JP (appointed 30 May 2007)
M. P. S. Barton (appointed 30 May 2007)
M. D. Buckley (appointed 30 May 2007)
N. D. Moss (appointed 30 May 2007)
C. Le Tissier (resigned 30 May 2007)
W. Simpson (resigned 30 May 2007)

Investment Manager
Bramdean Asset Management LLP
35 Park Lane
London W1K 1RB
United Kingdom

Company Secretary, Administrator and Registered Office
RBC Offshore Fund Managers Limited
Canada Court
Upland Road
St. Peter Port
Guernsey GY1 3QE
Channel Islands

Custodian
Royal Bank of Canada (Channel Islands) Limited
Canada Court
Upland Road
St. Peter Port
Guernsey GY1 3BQ
Channel Islands

Company Brokers
Cenkos Securities plc
6,7,8 Tokenhouse Yard
London EC2R 7AS

Independent Auditors
PricewaterhouseCoopers CI LLP
PO Box 321
National Westminster House
Le Truchot
St. Peter Port
Guernsey GY1 4ND
Channel Islands

UK Solicitors to the Company
Simmons & Simmons
CityPoint
One Ropemaker Street
London EC2Y 9SS
United Kingdom

Guernsey Advocates to the Company
Ogier
Ogier House
St. Julian's Avenue
St. Peter Port
Guernsey GY1 1WA
Channel Islands

Registrar
Capita Registrars (Guernsey) Limited
PO Box 627
St Sampson
Guernsey
GY1 4PP

Ends.

This information is provided by RNS
The company news service from the London Stock Exchange

END

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