Investment in Moonshot AI

Shaires Holdings Ltd, the publicly quoted London investment company focused on providing investors with exposure to leading private technology and AI businesses, announces that it has agreed a US$5.0 million commitment providing an indirect economic interest in Moonshot AI ("Moonshot"), a leading China-based frontier AI company and the developer of the Kimi family of large language models. The investment is made through a subscription in an Abu Dhabi Global Markets ("ADGM") special purpose vehicle (the "SPV"), which will hold an interest in Moonshot, and would represent an indirect economic interest of approximately 0.016% in the equity of Moonshot.

Highlights

• US$5.0 million committed for an indirect economic interest in Moonshot AI, held through participating shares in the SPV.
• The Company is subscribing for participating shares in the SPV (a vehicle established under the regulation of ADGM) whose sole asset will be its interest in Moonshot.
• The investment implies a valuation of Moonshot of approximately US$31.5 billion conditional on the SPVs allocation in one or more tranches of investment, with a 12% upfront fee, no management fee and no carried interest.
• Consistent with the Company's investing policy; funded from the Company's existing cash resources and proceeds from the recently concluded institutional placing.
• Completion is expected by the end of August, subject to customary conditions, including entry by the SPV into the agreements for the acquisition of the underlying Moonshot interest.

About Moonshot AI

Moonshot AI is a leading China-based frontier artificial intelligence company and the developer of the Kimi family of large language models and consumer AI assistant. Its investors are reported to include Alibaba, Tencent and HongShan, among other leading Chinese and global institutions. Moonshot is a private company and does not publish audited financial statements; any financial or operating figures are unaudited and management-reported.

It is not possible to provide the profit or loss figure for Moonshot as it does not publish financial statements and accordingly, no profit or loss figure attributable to Moonshot is available for disclosure. It is a privately-held company and therefore has no legal requirement to issue financial statements.

Principal risks

The investment is in a single private company and is concentrated, illiquid and long-term in nature. Moonshot is private, with no announced IPO or other realisation timeline, and the Company's ability to realise value depends on the SPV's ability to distribute or dispose of the underlying interest, which may be subject to lock-ups and other transfer restrictions. Moonshot is headquartered in the People's Republic of China and its business, ownership structure (which may include contractual/VIE arrangements) and any future realisation are subject to Chinese legal, regulatory, tax and foreign-exchange requirements, as well as to evolving US-China trade and technology measures, including export controls on advanced semiconductors and restrictions affecting cross-border investment. Financial information relating to Moonshot is unaudited and management-reported. The investment is denominated in US dollars and is subject to currency movements. The frontier-AI sector is evolving rapidly and is subject to competitive, technological, commercial and regulatory change. The value of the investment may fall as well as rise and the Company may not recover the amount invested.

Board and Management comments

Suhail Rizvi, Executive Chairman of Shaires, said:

"Some of the most important work in frontier AI is now being done outside the United States, and Moonshot is one of the clearest examples. Its Kimi models rank among the leading systems built in China, backed by some the country's most significant technology investors, and it is exactly the kind of company public investors are rarely able to reach.

"Our investment approach is global in nature, and our investment in Moonshot reflects our conviction that exposure to the best private AI companies, wherever in the world they are being built, belongs in a portfolio like ours."

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