Quest for Growth : Quarterly update Q1 2017

Regulated information. This press release contains information subject to the transparency requirements imposed on listed companies.

Schedule for publication:

27 April 2017 5.40 PM Press release available at

www.questforgrowth.com 28 April 2017 11.00 AM Press & Analyst meeting,

Capricorn Venture Partners NV,

Lei 19, 3000 Leuven

Results

QUEST FOR GROWTH

Quarterly update 31 March 2017

In the first quarter of 2017, return on equity stood at 11.5% (related to the net asset value at the end of the prior financial year). The net asset value per share was 9.93 euros, against 8.91 euros on 31 December 2016. In these three months, Quest for Growth booked a result of 15.5 million euros (1.35 euros per share), compared to a loss of 3.9 million euros (- 0.34 euros per share) in the first quar- ter of 2016. The share price on 31 March 2017 was 7.33 euros com- pared to 7.649 euros at the end of last year. On 31 March 2017, the share price was quoting with a discount of 26%, against 14% on 31 December 2016.

Market environment

The stock markets had a strong first quarter, partly due to good economic figures being released in the United States and in Europe. European exchanges (the STOXX Europe 600 index) rose by over 5% (over 6% including dividends). Small caps even performed that bit better. In the US, the S&P 500 index rose by 5.5%, corresponding

to around 4% in euro terms when the fall in the dollar is factored in.

Investments in listed companies

The listed share portfolio made a strong start to the year. Only Umicore (-1%) and Bertrandt (-3%) suffered slight falls. By contrast, a number of outliers are particularly conspicuous, such as CFE, Jensen Group, Melexis and Technotrans, which rose by more than 20%. The portfolio's estimated gross performance lies at approximate- ly 8%. Partial profit was taken on shares like Melexis, SAP and UDG Healthcare. Positions like EVS and Umicore were further built up.

Investments in unlisted companies

Avantium, one of the co-invest- ments by Quest for Growth along with Capricorn Cleantech Fund, raised more than 100 million eu- ros in a successful IPO. The shares held by Quest for Growth are sub- ject to a 360-day lock-up and, in the portfolio, are valued with a discount of 18%, reducing monthly by 1.5%. Taking that into account,

the operation has no significant impact on the net asset value of Quest for Growth.

Investments in venture capital funds

Investments in venture capital funds made a substantial con- tribution to the result. Astellas Pharma announced it wants to acquire Ogeda SA (located in Gosselies, Belgium). Ogeda is part of the Capricorn Health-tech Fund portfolio, in which Quest for Growth has a holding. If the deal completes successfully, Quest for Growth expects a positive impact on its intrinsic value of around

8.6 million euros, or 0.57 euros per Quest for Growth share. This valuation factors in a discount on the milestone payments and that portion of the amount that re- mains in escrow.

Composition of the Board of Directors

In March, the candidates nomi- nated to the board were appoin- ted by the shareholders general meeting and their appointment was endorsed by the FSMA. Fu-

rther to the changes, the number of directorships falls from 11 to nine, a third of whom are women. Baron Bernard de Gerlache de Go- mery, Euro Invest Management NV (represented by Prof. Philippe Haspeslagh) and Gengest BVBA (represented by Mr Rudi Mariën) declined to stand for re-election; the board of directors wishes to express its thanks for their many years of valued input.

Prospects

Provisional economic indicators offer a promising picture of the economy's future development. Together with the rotation from bonds to shares, this is edging the markets up. The higher pric- es are making it a more difficult task to find attractively valued listed companies. But, already at this stage, the first quarter's re- sults confirm the improvement we have projected for 2017 in the results of the unlisted portfolio.

31/03/2017 31/03/2017 28/02/2017 31/12/2016

7.33 EUR 9.93 EUR 9.11 EUR 8.91 EUR Number of shares 15,155,969 15,155,969 11,529,950

Discount of the share price versus Net Asset Value: 26.19%

Source: Estimate by Capricorn Venture Partners NV Décote du PERFORMANCEPER SHARE IN QUOTED PORTFOLIO

EUR

14,00

13,00

31 March 2014 - 31 March 2017 30

20

12,00

11,00 10

10,00

%

9,00 0

8,00

7,00

jan 14

feb 14

mrt 14

apr 14

mei 14

jun 14

jul 14

aug 14

sep 14

okt 14

nov 14

dec 14

jan 15

feb 15

mrt 15

apr 15

mei 15

jun 15

jul 15

aug 15

sep 15

okt 15

nov 15

dec 15

jan 16

feb 16

mrt 16

apr 16

mei 16

jun 16

jul 16

aug 16

sep 16

okt 16

nov 16

dec 16

jan 17

feb 17

mrt 17

apr 17

mei 17

jun 17

6,00

Melexis

Jensen-Group CFE

Technotrans

Kingspan

-10

TECDAX Performan Nexus

SAP

Kiadis Pharma

Norma Group

QfG quoted (e) EVS

STOXX Europe Smal

Ablynx

UDG Healthcare TKH Group

STOXX Europe 600

USU So ware

Andritz Gerresheimer Cenit

Pharmagest

Aliaxis Tomra Zetes

Fresenius SE

Corbion

Umicore Bertrandt

NAV Price

CONDENSED INTERIM FINANCIAL STATEMENTS

1. BALANCE SHEET AT 31 MARCH 2017

   ASSETS	2017 2016 31 March 31 December		LIABILITIES	2017 2016 31 March 31 December
   Fixed assets	134,111,475	121,029,377	Capital and Reserves	150,512,776	134,969,114
   Formation expenses	0	0	Issued capital	135,130,875	135,130,875
   Financial assets	134,111,475	121,029,377	Reserves	0	0
   Shares	133,697,250	120,158,826	Reserves not available for distribution	0	0
   Loans to portfolio companies	414,225	870,551	Reserves available for distribution	0	0
   Current assets	16,501,188	13,985,703	Profit carried forward	0	0
   Amounts receivable > one year	489,917	489,917	Loss carried forward	(161,761)	(161,761)
   Trade receivables	0	0	Result for the period	15,543,662	0
   Other receivables	489,917	489,917
   Amounts receivable	249,372	124,635	Debts	99,887	45,966
   Trade receivables	0	0	Amounts payable	44,370	45,966
   Other receivables	249,372	124,635	Financial debts	0	0
   Investments	0	0	Trade debts	0	1,513
   Own shares	0	0	Taxes	312	312
   Term investments	0	0	Dividends to be paid for the fiscal year	0	0
   Cash	15,573,015	13,363,928	Other debts	44,058	44,141
   Deferred charges and accrued income	188,884	7,223	Deferred charges and accrued income	55,517	0
   TOTAL ASSETS	150,612,663	135,015,080	TOTAL LIABILITIES	150,612,663	135,015,080

2. STATEMENT OF INCOME FOR THE PERIOD ENDED 31 MARCH 2017

   Operating income and charges	1 January 2017 31 March 2017	1 January 2016 31 March 2016
   Gross operating income	15,812,721	(3,091,564)
   Realised gains/losses on shares	1,958,875	(239,400)
   Unrealised gains/losses on shares	14,040,120	(3,456,959)
   Results from option transactions	(186,275)	0
   Realised results from forward currency rate agreements	0	520,895
   Unrealised results from forward currency rate agreements	0	83,900
   Operating charges	(507,983)	(530,074)
   Management fee	(368,436)	(353,809)
   Custodian fee	(11,434)	(14,188)
   Statutory Auditors fee	(3,941)	(3,099)
   Printing and publication costs	(21,797)	(14,349)
   Annual tax on collective investment schemes	(25,092)	(25,333)
   Directors fees	(48,037)	(47,372)
   Advisory fees	(9,995)	0
   Other	(19,253)	(71,923)
   Operating profit / loss	15,304,737	(3,621,638)
   Financial income	281,486	75,452
   Financial charges	(42,562)	(332,247)
   Other	0	0
   Profit / Loss for the period, before taxes	15,543,662	(3,878,433)
   Income taxes	0	0
   Profit / Loss for the period, after taxes	15,543,662	(3,878,433)
   Profit / Loss for the period, after taxes, per share	1,3481	(0.3364)

   PORTFOLIO COMPOSITION AND MARKET CAPITALISATION AT 31 MARCH 2017

   € 160,000,000

   19.96%

   € 140,000,000

   € 120,000,000

   65.87%

   3.26%

   € 100,000,000

   € 80,000,000

   € 60,000,000

   € 40,000,000

   € 20,000,000

   10.90%

   € 0

   Cash + Other net assets

   Quoted portfolio Unquoted portfolio Venture funds Market cap

   PORTFOLIO DISTRIBUTION BY SECTOR

   Semiconductors 1.6%

   Technology Hardware 8.7%

   Software & Services 11.5%

   Health Care Equipment & Services 15.4%

   Pharma & Biotech 2.9%

   Electrical & Engineering 15.4%

   Materials 13.6%

   Cash & other net

   assets

   10.9%

   Funds & Diversified Companies 20.0%

   Austria 3.5%

   Ireland 5.0%

   Israel 0.7%

   Norway 2.7%

   US 1.7%

   Switzerland 0.9%

   PORTFOLIO DISTRIBUTION BY COUNTRY TOTAL SHAREHOLDERS RETURN (SINCE 31/03/2014)

   France 4.2%

   United Kingdom

   2.6%

   Netherlands 13.4%

   Belgium 39.7%

   Germany 25.5%

   PORTFOLIO DISTRIBUTION

   100.000.000

   +11,5

   BY CURRENCY

   80.000.000

   34,5 %

   -0,3 %

   EUR 90.54%

   GBP 3.73%

   USD 2.35%

   NOK 2.52%

   60.000.000

   CHF 0.85%

   QUEST FOR GROWTH: RESULTS FROM 1 JANUARY UNTIL 31 MARCH 2017

   40.000.000

   7,9 %

   17,4 %

   20.000.000

   22,4 % 1,8 %

   24,7 %

   17,2 %

   -

   26,8 %

   2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

   -12,1 %

3. FINANCIAL ASSETS BREAKDOWN AT 31 MARCH 2017

4. Shares quoted companies

   Company	Sector / Market	Number of shares	Change since 31/12/2016	Currency	Share price	Valuation in €	in % of Net Asset Value
   Software & Services
   BERTRANDT	Deutsche Börse	34,000	0	€	91.1300	3,098,420	2.06%
   CENIT	Deutsche Börse	124,437	0	€	20.8950	2,600,111	1.73%
   SAP	Deutsche Börse	40,000	-13,000	€	91.9800	3,679,200	2.44%
   USU SOFTWARE	Deutsche Börse	142,806	0	€	21.3000	3,041,768	2.02%
   ZETES INDUSTRIES	Euronext Brussels	89,073	0	€	54.3000	4,836,664	3.21%
   Technology Hardware
   EVS	Euronext Brussels	77,500	37,500	€	35.7450	2,770,238	1.84%
   TKH GROUP	Euronext Amsterdam	152,601	-7,500	€	40.2250	6,138,375	4.08%
   TOMRA SYSTEMS	Oslo Stock Exchange	370,000	0	NOK	94.0000	3,793,506	2.52%
   Semiconductors
   MELEXIS	Euronext Brussels	26,135	-15,000	€	81.2100	2,122,423	1.41%
   Healthcare Equipment & Services
   FRESENIUS	Deutsche Börse	52,500	-7,500	€	75.3300	3,954,825	2.63%
   GERRESHEIMER	Deutsche Börse	70,000	5,000	€	74.2400	5,196,800	3.45%
   NEXUS	Deutsche Börse	245,161	-4,000	€	20.2050	4,953,478	3.29%
   PHARMAGEST INTERACTIVE	Euronext Paris	160,000	0	€	36.2500	5,800,000	3.85%
   UDG HEALTHCARE	London Stock Exchange	330,786	-60,000	£	7.0200	2,714,245	1.80%
   Pharma & Biotech
   ABLYNX	Euronext Brussels	179,950	0	€	11.6450	2,095,518	1.39%
   KIADIS PHARMA	Euronext Amsterdam	254,332	-120,000	€	8.9800	2,283,901	1.52%
   Electrical & Engineering
   ANDRITZ	Vienna	103,000	6,000	€	46.8850	4,829,155	3.21%
   CFE	Euronext Brussels	38,302	-3,000	€	131.2000	5,025,222	3.34%
   JENSEN GROUP	Euronext Brussels	97,500	-2,500	€	43.7050	4,261,238	2.83%
   NORMA GROUP	Deutsche Börse	92,700	0	€	44.3450	4,110,782	2.73%
   TECHNOTRANS	Deutsche Börse	167,396	-1,565	€	27.6000	4,620,130	3.07%
   Materials
   ALIAXIS	Euronext Expert Market Brussels	128,998	6,850	€	21.4000	2,760,557	1.83%
   AVANTIUM	Euronext Amsterdam	169,636	0	€	8.9626	1,520,380	1.01%
   CORBION	Euronext Amsterdam	150,000	20,000	€	25.6450	3,846,750	2.56%
   KINGSPAN	Dublin	140,000	20,000	€	29.9050	4,186,700	2.78%
   UMICORE	Euronext Brussels	91,000	18,000	€	53.4000	4,859,400	3.23%
   Options
   DAX PUT strike 11.000 jun17	750		750	€	64.4000	48,300	0.03%
   99,148,084	65.87%

   EPIGAN	Semiconductors	€	305,706	0.20%
   FRX POLYMERS	Materials	$	2,229,506	1.48%
   GREEN BIOLOGICS	Materials	£	2,400,106	1.59%
   SEQUANA MEDICAL	Healthcare Equipment & Services	CHF	1,279,936	0.85%
   6,215,254	4.13%

5. Shares unquoted companies

Company	Sector / Market	Currency	Valuation in €	in % of Net Asset Value
ANTERYON	Technology Hardware	€	1,648,117	1.10%
MAPPER LITHOGRAPHY	Semiconductors	€	605,423	0.40%
2,253,540	1.50%
Co-investments Capricorn Venture Funds