The CD Funds started off being almost all owned by Dixon...

The CD Funds started off being almost all owned by Dixon Advisory clients, just as with URF and New Energy Solar. Those clients are scarred by those conflicted, miss-selling, fee scams and have been selling out of any funds tainted by Dixons/E&P - hence the CD Funds too.

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Everyday Australians hired Dixon Advisory to help them manage their savings. Dixon’s advisers recommended they invest in the URF, and then several of Dixon’s related companies charged fees for managing the fund and servicing assets.Since the fund listed in 2012, a staggering $272 million of fees, costs and expenses have flown from the fund to Dixon.For context, the fund's market capitalisation had gained $207 million until the end of last year, while a further $84 million of distributions were paid to investors. This year's $150 million slide in the market value has now put investors deeply in the red.
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https://www.copyright link/companies/financial-services/how-us-masters-renovation-rampage-fed-the-dixon-empire-20190615-p51y3k

1. A merger with an ASX fund isn't necessary but would be one way to eliminate a sizeable part of the discount. If such a fund was confident it could perform well and raise capital as the CD portfolios were realised it wouldn't need CD investors to take a big haircut. PE1's prior offer was not acceptable value (my view) but they or another party (WMA?) or unlisted alternative assets fund may bid higher. My prediction that distributions around existing NAVs would continue to be made has proved correct - patience has paid off for investors not the vulture funds.

2. Google private equity and "secondary transactions". It's quite common to sell portfolios in bulk, especially as the GP fees for CD1 and CD2 have expired.

3. K2 (aka KAM) badly needs to grow its FUM and retain it (it's unprofitable). It's economic interests are not to see the CD Funds liquidated quickly.