Contents of the Financial Statements

for the Period Ended 31 December 2025

Balance sheet

As at 31 December 2025

The notes form part of these financial statements

Balance sheet statements

For the year ending 31 December 2025 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen not to file a copy of the company's profit and loss account.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 31 December 2025

• 1. Accounting policies

  Basis of measurement and preparation

  These financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 101

  Turnover policy

  The Company provides investment management support services exclusively to its Parent under an intercompany services agreement. The services provided include expanding the presence of its Parent and investor relations in the UK market, providing local support to the Parent for due diligence and evaluation of investment opportunities in the UK and EU, and the discretionary portfolio management of the Funds. Revenue represents fees charged to the Parent for services provided. The Company satisfies its performance obligations over time as services are rendered, as the Parent simultaneously receives and consumes the benefits of the services. Accordingly, revenue is recognised over time as the services are performed. The fee is determined in accordance with the Company's transfer pricing policy, which provides for recovery of the Company's operating costs plus an arm's length mark-up.

  Tangible fixed assets depreciation policy

  Fixed assets consists primarily of computer hardware and are recorded at cost less accumulated depreciation. Fixed assets are depreciated using the double-declining balance method over the estimated useful life of the assets on the following basis: Computer hardware 5 years

  Other accounting policies

  Company information The principal activities of Bracebridge Capital UK, Ltd. (the “Company”) are to focus on expanding the presence of its parent company, Bracebridge Capital, LLC (the “Parent”), and investor relations in the United Kingdom (“UK”) market, to provide local support to the Parent for due diligence and evaluation of investment opportunities in the UK and European Union (“EU”), and the discretionary portfolio management of pooled investment vehicles managed by the Parent (the “Funds”) in accordance with relevant investment objectives and restrictions and risk management limits (collectively, the “Services”). The Company currently has two employees, both of whom have been seconded to a regulatory host appointed by the Company to provide the Services. Accounting convention The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards as adopted for use in the United Kingdom (“UK IFRS”) and the requirements of the Companies Act 2006. The functional and presentational currency of the Company is pounds sterling (“GBP”). All amounts are rounded to the nearest pound, unless otherwise stated. These financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. As this is the Company’s first period of operations, no comparative information is presented. Going concern The Company is remunerated on a cost-plus basis under the group’s transfer pricing policy and is dependent on the continuation of the intercompany services arrangement with its Parent. The directors have considered the going concern requirements of UK-adopted international accounting standards, including IAS 1 Presentation of Financial Statements, and the relevant statutory requirements of the Companies Act 2006, including the requirement that the financial statements give a true and fair view. The directors have also had regard to the Financial Reporting Council’s guidance on the going concern basis of accounting and related reporting, which brings together relevant UK company law, accounting standards and related reporting guidance on the going concern basis of accounting and solvency and liquidity risks. In assessing going concern, the directors have considered the Company’s forecast liquidity position for a period at least twelve months from the signing of these financial statements, including the timing of settlement of amounts due from related parties and the Company’s expected operating cost base. The Company has no external debt financing and therefore is not exposed to external refinancing risk or debt covenant compliance risk. The directors have also considered reasonably possible downside scenarios, including delays in the settlement of intercompany receivables, increases in professional fees and compensation costs, and lower or delayed intercompany service fee receipts. Based on this assessment, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing the financial statements, considering the continuation of the intercompany services arrangement with its Parent. Accordingly, the directors have prepared these financial statements on a going concern basis. No material uncertainties have been identified that may cast significant doubt on the Company’s ability to continue as a going concern. New and amended IFRS accounting standards The Company has applied all accounting standards and amendments that became effective for annual reporting periods beginning on or after 1 January 2025 and are relevant to its operations. Management assessed the impact of these amendments and concluded that they do not have a material effect on the Company's financial statements. The following standards and amendments have been issued but are not yet effective for the period ended 31 December 2025 and have not been early adopted by the Company: IFRS 18 – Presentation and Disclosure in Financial Statements was issued in April 2024 and is effective for annual reporting periods beginning on or after 1 January 2027. The standard replaces IAS 1 Presentation of Financial Statements and introduces new requirements for the presentation of information in the statement of profit or loss and other comprehensive income, including specified categories and subtotals, as well as enhanced disclosures relating to management-defined performance measures. Management does not expect that the adoption of this standard will have a material effect on the Company's financial statements. Foreign currency Transactions in foreign currencies are translated into GBP at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities are retranslated at the reporting date, with exchange differences recognised in profit or loss. Revenues and expenses are translated at the average exchange rates prevailing during the respective reporting periods. Taxation The tax on income represents the sum of the current and deferred tax. Current tax assets are recognised when tax paid exceeds the tax payable. Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the Company intends either to settle on the net basis or to realise the asset and settle the liability simultaneously. Current tax is based on taxable profit for the period. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted during the reporting period. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be utilised. Expenses Compensation and benefits, occupancy, professional services, data and research, technology, and general and administrative expenses are recorded when incurred. General and administrative expenses consist of travel and entertainment, insurance, and other expenses related to operating the Company. Financial instruments Financial instruments are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are recognised and measured in accordance with IFRS 9 Financial Instruments. Financial assets are classified on initial recognition and subsequently measured at amortised cost or fair value through profit or loss, depending on the Company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Financial liabilities are classified on initial recognition and subsequently measured at amortised cost or fair value through profit or loss, as applicable. Financial assets and financial liabilities are offset, and the net amount presented in the statement of financial position, only when the Company has a legally enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Financial assets Financial assets, which include cash and cash equivalents and receivables, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial liabilities Financial liabilities, including accounts payable, accrued expenses and other payables are initially recognised at transaction price and subsequently carried at amortised cost. Derecognition of financial liabilities Financial liabilities are derecognised when, and only when, the Company’s contractual obligations are discharged, cancelled, or they expire. Financial risk management The Company’s activities expose it to a limited number of financial risks, principally credit risk, liquidity risk and foreign currency risk. The directors manage these risks on an ongoing basis as part of the Company’s normal operating and treasury activities. Credit risk is the risk that a counterparty will fail to discharge an obligation and cause the Company to incur a financial loss. The Company’s principal exposure to credit risk arises from intercompany receivables. The Parent is the Company’s sole customer, and the Company is remunerated on a cost-plus basis under the Services Agreement. Amounts due from the Parent are unsecured, interest-free and repayable on demand. Management monitors the recoverability of financial assets as part of its normal operating activities and does not consider an expected credit loss allowance to be required. Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities as they fall due. The Company manages liquidity risk by monitoring forecast cash flows and expected settlements with the Parent. The Company’s amounts due to the Parent are unsecured, interest-free and repayable on demand. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s functional and presentational currency is pounds sterling. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in currencies other than pounds sterling. Foreign currency transactions and monetary balances are translated in accordance with the Company’s foreign currency accounting policy, with exchange differences recognised in the statement of profit or loss and other comprehensive income. Management monitors foreign currency exposure on an ongoing basis and does not consider the Company’s exposure to foreign currency risk at 31 December 2025 to be significant.

Notes to the Financial Statements

for the Period Ended 31 December 2025

• 2. Employees

  	2025
  Average number of employees during the period	2