Venture Capital Market Overview (April 30, 2025 – March 31, 2026)

Venture Capital Deal Activity

U.S. venture investment accelerated meaningfully during the Fund’s fiscal year, though activity remained highly concentrated in artificial intelligence and other platform technologies. According to PitchBook-NVCA data2, 2025 represented one of the strongest years for venture deal value since the 2021 peak, driven primarily by several historically large AI financings and renewed optimism surrounding infrastructure, defense technology, robotics, and enterprise software. AI-related companies accounted for well over half of total U.S. venture capital invested during portions of 2025, reflecting the market’s continued conviction that generative AI and foundational infrastructure represent the next major technology cycle.

While overall capital deployment improved, the market remained bifurcated. A relatively small number of category-leading companies captured a disproportionate share of venture dollars, while many non-AI startups continued to face elongated fundraising timelines and heightened investor scrutiny. PitchBook and NVCA3 noted that liquidity conditions improved modestly through late 2025 and early 2026, although fundraising and exit activity outside the top tier of venture-backed companies remained uneven.

Importantly, public market conditions showed measurable improvement during the period. Several technology IPOs and large-scale strategic transactions reopened portions of the exit market for venture-backed companies, contributing to a sharp increase in reported exit values entering 2026. While the broader IPO environment has not fully normalized to pre-2022 levels, investors increasingly view the backlog of mature private technology companies as a potential catalyst for improved liquidity over the next several years.

Beyond AI, consumer and digitally native brands demonstrated early signs of stabilization after several difficult years marked by inflationary pressures and reduced discretionary spending. Investors increasingly favored businesses demonstrating durable margins, disciplined operating structures, and clear paths toward profitability rather than prioritizing growth at any cost. These trends continue to align with our investment philosophy of backing resilient brands and technology-enabled businesses capable of compounding value through multiple market cycles.

Runway Extensions, Insider-Led Capital, & Valuations

Capital formation remained selective throughout much of 2025, encouraging many founders to prioritize operational efficiency and extend runway through existing investor relationships rather than pursue aggressively priced external financings. Insider-led rounds, structured extensions, and bridge financings continued to represent a meaningful portion of venture activity, particularly at the seed and early-growth stages, as investors concentrated capital into their highest-conviction portfolio companies. PitchBook and industry participants broadly characterized the market as one favoring established winners and companies demonstrating measurable traction.

At the same time, valuation trends became increasingly polarized. High-quality AI and infrastructure companies achieved record-setting financings and premium valuations, while many traditional software, consumer, and marketplace businesses continued to experience pricing discipline and longer diligence cycles. Carta’s private markets data4 showed that early-stage valuations generally remained resilient through 2025, particularly among companies benefiting from strong revenue growth or AI-related tailwinds.

The result has been a venture environment increasingly defined by selectivity rather than broad market expansion. Investors appear willing to deploy significant capital into businesses perceived as category leaders, while continuing to exercise caution toward companies lacking differentiated technology, efficient growth profiles, or clear exit visibility. We believe this disciplined underwriting environment ultimately benefits long-term investors by reinforcing fundamentals and reducing the excesses that characterized the 2021 market cycle.

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2        https://nvca.org/wp-content/uploads/2026/01/q4-2025-pitchbook-nvca-venture-monitor.pdf?utm_source=chatgpt.com

3        https://nvca.org/pitchbook-nvca-venture-monitor/?utm_source=chatgpt.com

4        https://carta.com/data/state-of-private-markets-q3-2025/?utm_source=chatgpt.com

Dry Powder, Fundraising, & Capital Deployment

Despite a challenging fundraising environment for many venture firms, the industry continues to maintain substantial levels of undeployed capital. Venture managers entered 2026 with significant dry powder accumulated during the fundraising boom of 2020 – 2022, although deployment patterns remained uneven across the ecosystem. Investors generally favored fewer, larger, and higher-conviction investments rather than broad portfolio expansion.

At the same time, venture fundraising itself remained under pressure. PitchBook-NVCA data indicated that fundraising activity through 2025 continued trending below historical highs, with many emerging managers facing prolonged fundraising cycles and increased competition for limited partner allocations. Larger, established platforms generally continued to capture the majority of institutional commitments, reflecting ongoing LP preference for scale, brand recognition, and demonstrated liquidity histories.

Nevertheless, signs of improving capital deployment became increasingly visible during the latter half of the fiscal year. Increased investment pace, improving exit activity, and renewed public market participation suggest portions of the venture ecosystem may be entering the early stages of a broader recovery cycle. We believe the combination of substantial dry powder reserves and improving liquidity conditions could support stronger venture activity over the next several years, particularly for companies positioned within long-duration secular growth themes.

Retail Access to Alternatives

Another notable development during the fiscal year was the continued expansion of retail and high-net-worth investor access to private markets. Semi-liquid structures, interval funds, tender-offer funds, and digitally enabled brokerage platforms continued gaining traction as wealth managers and accredited investors sought diversified exposure to venture capital and other private asset classes. Industry forecasts5 continue to project substantial long-term growth in private market participation driven by individual investors seeking alternatives to traditional public equity and fixed-income allocations.

Parallel to this trend, secondary marketplaces and digital trading platforms further expanded access to pre-IPO securities and private-company liquidity solutions. Lower minimum investment thresholds and broader platform accessibility have continued democratizing participation in venture-backed companies that historically remained accessible primarily to institutional investors.

The Fund believes these structural shifts represent a meaningful long-term opportunity for innovative investment vehicles capable of providing broader access to venture capital strategies. As private markets continue evolving toward greater accessibility and transparency, we believe investor demand for professionally managed venture exposure will continue expanding across both institutional and retail channels.

Cashmere Fund Strategy

Portfolio Direction

Since inception, The Cashmere Fund has remained disciplined and focused on its core strategy of backing early-stage startups with strong growth potential and prudent operating plans. To date, the Fund has invested in 36 portfolio companies and four fund investments across a diverse range of industries, which we believe positions the portfolio to participate in meaningful long-term upside opportunities.

While we remain committed to sourcing high-quality early-stage investments, the continued growth of the Fund is allowing us to thoughtfully expand our investment approach. As assets under management increase, we are reserving additional capital for follow-on investments in existing portfolio companies while also selectively pursuing later-stage opportunities that may offer the potential for increased liquidity and earlier distributions to shareholders. We believe this broader portfolio construction approach can enhance flexibility while continuing to align with the Fund’s long-term growth objectives.

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5        https://www.cambridgeassociates.com/venture-capital/?utm_source=chatgpt.com

Our experience has also shown that access to later-stage private company investments is particularly attractive to retail investors, as these companies are often closer to strategic acquisitions, secondary liquidity opportunities, or public market outcomes. At the same time, maintaining exposure to early-stage innovation remains central to the Fund’s identity and long-term return potential.

We remain confident that our strategy of selective capital deployment, active support for portfolio founders, and disciplined risk management will position the Fund well in the years ahead. Our team continues to closely monitor the evolving venture capital landscape and adapt thoughtfully as market conditions change. We also continue to view our role as extending beyond capital alone. By supporting emerging companies with both investment and strategic guidance, we believe we contribute to innovation and the broader entrepreneurial ecosystem.

Finally, we would like to thank our investors for their continued trust and commitment to The Cashmere Fund. We are encouraged by the Fund’s progress to date and remain optimistic about the opportunities ahead. As always, we remain focused on executing our strategy with the objective of generating long-term value for our shareholders.

New Portfolio Additions

Below is a summary of the equity investments in portfolio companies and portfolio funds in which the Fund invested during its fiscal year ended March 31, 2026.

Beast Industries:    Beast Industries is the holding company behind Jimmy “MrBeast” Donaldson’s expanding ecosystem of content, consumer products, and software. With 400M+ YouTube subscribers and ~3B monthly views, the company transforms creator-driven attention into durable, multi-category businesses, ranging from streaming hits and snacks to toys and analytics tools.

Kalshi:    Kalshi is a federally regulated financial exchange that allows users to trade on the outcomes of real-world events — from sports and elections to economic indicators and cultural moments. By turning uncertainty into a tradable asset class, the company is building the first large-scale, regulated prediction market platform in the United States.

Founded in 2018, Kalshi sits at the intersection of finance, technology, and sports engagement — creating a new category where forecasting meets market infrastructure.

Information regarding portfolio companies has been obtained from the companies themselves or from third-party sources believed by the Fund to be reliable; however, the Fund does not guarantee the accuracy or completeness of such information. The investments discussed in this report may not have been held by the Fund for the entire reporting period, and all current and prospective investments remain subject to risk. Portfolio holdings are reviewed in accordance with the Fund’s investment strategy and are subject to change over time. Please refer to the Schedule of Investments included in this annual report for a complete listing of the Fund’s investments and their respective values as of March 31, 2026.

The views expressed in this report are exclusively those of the solely those of the Fund’s investment adviser, Sweater Industries, LLC, and sub-adviser, Forma Cashmere LLC, as of March 31, 2026. Any such views are subject to change at any time based on market or other conditions, and the Fund disclaims any responsibility to update such views. These views are not intended to be a forecast of future events, a guarantee of future results or advice. Because investment decisions for the Fund are based on numerous factors, these views may not be relied upon as an indication of trading intent on behalf of the Fund. The information contained herein has been prepared from sources believed to be reliable but is not guaranteed by the Fund as to its accuracy or completeness. Past performance is not indicative of future results. There is no assurance that the Fund’s investment objectives will be achieved.

CASHMERE FUND
Portfolio Composition

Fund Vertical Diversification

The following table provides a breakdown of the Fund, by the industry verticals that the underlying securities represent, as a percentage of net assets as of March 31, 2026.

Fund Security Type Diversification

The following chart provides a visual breakdown of the Fund, by the security type that the underlying securities represent, as a percentage of net assets as of March 31, 2026.

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

2. Significant accounting policies (cont.)

Federal Income Taxes — The Fund has elected and intends to continue to elect to be treated, and expects each year to qualify, as a regulated investment company (“RIC”) under the provisions of Subchapter M of the Internal Revenue Code of 1986, as amended. As such, the Fund generally will not be subject to U.S. federal corporate income tax, provided that it distributes substantially all of its net taxable income and gains on a timely basis and meets the other quarterly compliance requirements.

The Fund recognizes the tax benefits or expenses of uncertain tax positions only when the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has reviewed the Fund’s tax positions and concluded that no provision for unrecognized tax benefits or expenses should be recorded related to uncertain tax positions taken in the Fund’s current tax year and all open tax years.

GAAP requires that certain components of net assets be reclassified between financial and tax reporting. Permanent differences between book and tax basis are attributable to non-deductuble expenses. These reclassifications have no effect on net assets or net asset value per share. For the tax year ended September 30, 2025, the fund made the following permanent tax reclassifications on the Statement of Assets and Liabilities:

Distributions to shareholders — Following the disposition by the Fund of securities of Portfolio Companies, or the receipt by the Fund of distribution proceeds from a Portfolio Fund, the Fund will make cash distributions of the net profits, if any, to shareholders once each fiscal year at such time as the Board determines in its sole discretion (or more often at such times determined by the Board, if necessary for the Fund to maintain its status as a RIC and in accordance with the Investment Company Act). The Fund intends to establish reasonable reserves to meet Fund obligations prior to making distributions.

Segment Reporting — The Fund’s chief operating decision maker (CODM), the Principal Executive Officer, manages the Fund’s business activities as a single operating and reportable segment. Accordingly, the CODM uses net income to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes functional expenses (cost of revenue, sales, and marketing, research and development and general administrative) to manage the Fund’s operations. Other segment items included in net income are interest income and other expenses, which are reflected in the statement of operations.

Recently Adopted Accounting Pronouncement — In the reporting period, the Fund adopted FASB Accounting Standards Update 2023-09, Income Taxes (Topic 740) — Improvements to Income Tax Disclosures (ASU 2023-09), which enhances income tax disclosures, including disclosure income taxes paid disaggregated by jurisdiction. Adoption of the new standard did not materially impact financial statement disclosures and did not affect the Fund’s financial position or the results of its operations.

Investment Valuation

The Board has approved valuation procedures for the Fund (the “Valuation Procedures”) which are used for determining the fair value of any Fund investments for which a market quotation is not readily available. The valuation of the Fund’s investments is performed in accordance with the principles found in Rule 2a-5 under the 1940 Act and in conjunction with FASB’s ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). The Board has designated the Adviser as the valuation designee of the Fund.

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

2. Significant accounting policies (cont.)

As valuation designee, the Adviser performs the fair value determination relating to any and all Fund investments, subject to the conditions and oversight requirements described in the Valuation Procedures. In furtherance of its duties as valuation designee, the Adviser has formed a valuation committee (the “Valuation Committee”), to perform fair value determinations and oversee the Adviser’s day-to-day functions related to the fair valuation of the Fund’s investments. The Valuation Committee may consult with representatives from the Fund’s outside legal counsel or other third-party consultants in their discussions and deliberations.

Shares of mutual funds, including money-market funds, are fair valued at their reported NAV.

A substantial portion of the Fund’s assets consist of securities of Equity Investments in Portfolio Companies, which may be made through Simple Agreements for Future Equity and Convertible Debt, and Portfolio Funds for which there are no readily available market quotations. New purchases of Equity Investments in Portfolio Companies and Portfolio Funds may be valued at acquisition cost initially.

The information available in the marketplace for such Portfolio Companies, their securities and the status of their businesses and financial conditions is often extremely limited, outdated, and difficult to confirm. Such securities are valued by the Adviser at fair value as determined pursuant to the Valuation Procedures. In determining fair value, the Adviser is required to consider all appropriate factors relevant to value and all indicators of value available to the Adviser. The determination of fair value necessarily involves judgment in evaluating this information in order to determine the price that the Fund might reasonably expect to receive for the security upon its current sale. The most relevant information may often be that information which is provided by the issuer of the securities. Given the nature, timeliness, amount, and reliability of information provided by the issuer, fair valuations may become more difficult and uncertain as such information is unavailable or becomes outdated.

Certain investments for which market quotations are not readily available or for which market quotations are deemed not to represent fair value may be valued using a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in determining the fair value of our investments include, as relevant and among other factors: available current business data (e.g., information available through regulatory filings, press releases, news feeds and financial press), including relevant and applicable market trading and transaction comparables; applicable market yields and multiples; information provided by the company (e.g., letters to investors, financials, information provided pursuant to financial document reporting obligations); security covenants; call protection provisions; information rights; the nature and realizable value of any collateral; the portfolio company’s ability to make payments; its earnings and discounted cash flows; the markets in which the portfolio company does business; comparisons of financial ratios of peer companies that are public; M&A comparables; and enterprise values.

In valuing Portfolio Fund investments held in the Fund, the Adviser will rely primarily on unaudited valuation statements received from such funds on a quarterly basis, and (when available) audited values received on an annual basis. It will usually be the case, however, that the most recently reported value by such funds will be as of a date that is a quarter in arrears than the date as of which the Fund is calculating its NAV. In these circumstances, and in other situations where the Adviser determines that the consideration of the following factors is relevant to determining the value of an interest in a Portfolio Fund, such fund’s reported value will generally be adjusted for cash flows to/from such fund due to capital drawdowns/distributions that may have occurred since the date of the most recently available reported values; changes in the valuation of relevant indices; and such other factors that the Adviser deems appropriate, as well as any publicly available information regarding such fund’s portfolio companies and/or assets (i.e., idiosyncratic factors). Other factors that may be relevant in determining the value of an interest in a Portfolio Fund, include (i) information provided to the Fund or to the Adviser by such fund, or the failure to provide such information as agreed to in such fund’s offering materials or other agreements with the Fund; (ii) relevant news and other public sources; (iii) known secondary market transactions in the fund’s interests (to the extent deemed a credible indication of value); and (iv) significant market events that may not otherwise be captured by changes in valuation of relevant indices discussed above. As part of the Adviser’s

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

2. Significant accounting policies (cont.)

ongoing due diligence process, the Adviser will compare its fair valuation of the Fund’s interests in a Portfolio Fund to such fund’s quarterly valuation statement for that particular period — if provided by the Portfolio Fund — for purposes of determining whether any adjustments to the implementation of the Valuation Procedures should be made going forward.

When determining the price for an investment to be fair valued, the Adviser is required to seek to determine the price that the Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction. The price generally may not be determined based on what the Fund might reasonably expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value determinations are typically based upon all available factors that the Adviser deems relevant at the time of the determination and may be based on analytical values determined by the Adviser using proprietary or third-party valuation models.

The Fund’s financial statements, which are prepared in accordance with GAAP, follow the requirements for valuation set forth in ASC 820, which defines and establishes a framework for measuring fair value under GAAP and expands financial statement disclosure requirements relating to fair value measurements.

The three-level hierarchy for fair value measurement is defined as follows:

•        Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

•        Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market — corroborated inputs)

•        Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

Investments in private investment companies that are reported in the Fund’s statement of assets and liabilities at NAV per share (or its equivalent) without further adjustment, as a practical expedient of fair value, are excluded from the fair value hierarchy.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the overall fair value measurement. The Adviser’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the investment.

The Fund expects that it will hold a high proportion of Level 3 investments relative to its total investments, which is directly related to the Fund’s investment strategy and target investments.

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

2. Significant accounting policies (cont.)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to determine fair value of the Fund’s investments as of March 31, 2026:

____________

*        All sub-categories within the security type represent their respective evaluation status. For a detailed breakout, please refer to the Schedule of Investments.

The following is a roll-forward of the activity in investments in which significant unobservable inputs (Level 3) were used in determining fair value as of March 31, 2026:

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(1)      Amounts include $110,000 in simple agreements for future equity in portfolio companies converted to $110,000 in equity investments in portfolio companies.

Change in net unrealized appreciation/(depreciation) for securities owned at March 31, 2026 was $939,175.

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

2. Significant accounting policies (cont.)

The following is a summary of quantitative information about significant unobservable valuation inputs for Level 3 Fair Value Measurements for investments held as of March 31, 2026:

____________

(1)      To the extent the unobservables inputs increase or decrease there is a corresponding increase or decrease in fair value.

(2)      Certain Level 3 investments of the Fund, totaling fair value assets of $873,602, have been recorded at fair value using unadjusted third-party inputs. As such, these investments have been excluded from the preceding table.

The following is the fair value measurement of investments that are measured at NAV per share (or its equivalent) as a practical expedient:

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*        Refer to the Schedule of Investment for industry classifications of individual securities.

3. Fees and Transactions with Related Parties and Other Agreements

The Fund has entered into an Investment Management Agreement with the Adviser, pursuant to which the Adviser provides general investment advisory services for the Fund. For providing these services, the Investment Adviser receives a fee from the Fund, accrued daily and paid monthly in arrears, at an annual rate equal to 2.50% of the Fund’s average daily net assets. Forma acts as the Fund’s Sub-Adviser and assists the Adviser in implementing and supervising the investment program of the Fund and the composition of its portfolio. Forma is paid by the Adviser, and not by the Fund. For the year ended March 31, 2026, the Fund accrued $394,666 in investment management fees.

Effective December 11, 2025, the Adviser has entered into an expense limitation agreement (“Expense Limitation Agreement”) with the Fund, pursuant to which the Adviser has agreed to waive its management fees and/or reimburse Fund expenses to the extent necessary so that the Fund’s total annual operating expenses (excluding any taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs, but inclusive of organizational costs and offering costs) (“Operating Expenses”) do not exceed 4.85% of the Fund’s average daily net assets. The Expense Limitation Agreement is in effect through December 11, 2026.

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

3. Fees and Transactions with Related Parties and Other Agreements (cont.)

From April 1, 2025 to December 10, 2025 pursuant to the Fund’s prior Expense Limitation Agreement, the Adviser agreed to reimburse Operating Expenses of the Fund so that the Fund’s Operating Expenses would not exceed 5.90% of the Fund’s average daily net assets.

The Fund has agreed to repay the Adviser for any management fees waived and/or Fund expenses the Adviser reimbursed pursuant to the Expense Limitation Agreement, provided the repayments do not cause the Fund’s Operating Expenses to exceed the expense limitation in place at the time the management fees were waived and/or the Fund expenses were reimbursed, or any expense limitation in place at the time the Fund repays the Adviser, whichever is lower. Any such repayments must be made within three years after the Adviser waived the fee or reimbursed the expense. As of March 31, 2026 the Adviser may seek recoupment for previously waived expenses subject to the Expense Limitation Agreement noted above, the following amounts are subject to recoupment by the Adviser by the following dates:

For the year ended March 31, 2026, the Adviser waived and/or reimbursed expenses totaling $575,124 that are subject to recoupment.

In consideration of the services rendered by those Trustees who are not “interested persons” (as defined in Section 2(a)19 of the 1940 Act) of the Trust (“Independent Trustees”), the Fund pays each Independent Trustee an annual retainer of $25,000. Independent Trustees are also reimbursed by the Fund for expenses they incur relating to their services as Trustees, including travel and other expenses incurred in connection with attendance at in-person Board and Committee meetings. The Independent Trustees do not receive any other compensation from the Fund. Trustees that are interested persons are not compensated by the Fund.

Certain officers of the Fund and members of the Board are also officers of the Adviser.

Employees of Trailmark Fund Services (“Trailmark”) serve as officers of the Fund. Trailmark receives a monthly fee for the services provided to the Fund. The Fund also reimburses Trailmark for certain out-of-pocket expenses incurred on the Fund’s behalf.

UMB Fund Services, Inc. serves as the Fund’s Administrator and Accounting Agent. UMB Bank, n.a. serves as the Fund’s Custodian. Trailmark Fund Services serves as the Transfer Agent.

4. Capital share transactions

Fund shares are continually offered under Rule 415 of the Securities Act of 1933, as amended. As an interval fund, the Fund has adopted a fundamental policy requiring it to make semiannual (twice a year) repurchase offers pursuant to Rule 23c-3 of the 1940 Act. Each semiannual repurchase offer will be for 5.00% of the Fund’s Shares at NAV. An early repurchase fee will be applied for Shares held less than 545 days. For Shares held for 185 days or less, a 2.00% fee will be applied. For Shares held between 186 and 365 days, a 1.5% fee will be applied. For Shares held between 366 days and 545 days, a 0.50% fee will be applied. Early repurchase fees will be based on the value of the Shares redeemed.

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

4. Capital share transactions (cont.)

During the year ended March 31, 2026, the Fund completed two repurchase offers. The result of these repurchase offers are as follows:

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*        The Fund’s tenders exceeded 5.00%, but less than 5.07%, and repurchases were made on a pro-rata basis

5. Investment transactions

Purchases and sales of investments, other than short-term securities, for the year ended March 31, 2026, were $2,410,188 and $2,405,923, respectively.

6. Affiliated Investments

Issuers that are considered affiliates, as defined in Section 2(a)(3) of the 1940 Act, of the Fund at period-end are noted in the Fund’s Schedule of Investments. The table below reflects transactions during the period with entities that are affiliates as of March 31, 2026 and may include acquisitions of new investments, prior year holdings that become affiliated during the period, and prior period affiliated holdings that are no longer affiliated as of period-end.

7. Restricted securities

Restricted securities include securities that have not been registered under the Securities Act of 1933, as amended, and securities that are subject to restrictions on resale. The Fund may invest in restricted securities that are consistent with the Fund’s investments objectives and investment strategies. Investments in restricted securities are valued at fair value as determined in good faith in accordance with procedures adopted by the Board.

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

7. Restricted securities (cont.)

Additional information on each restricted investment held by the Fund on March 31, 2026 is as follows:

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

7. Restricted securities (cont.)

8. Commitments and contingencies

In the normal course of business, the Fund will enter into contracts that contain a variety of representations, provide general indemnifications, set forth termination provisions and compel the contracting parties to arbitration in the event of dispute. From time to time, the Fund may be a party to arbitration, or legal proceedings, in the ordinary course of business, including proceedings relating to the enforcement of provisions of such contracts. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that would be subject to arbitration, generally.

In the normal course of business, the Fund may enter into agreements to purchase and sell investments. Such agreements are subject to certain rights of the issuer’s and ultimately, issuer approval. As of March 31, 2026, the Fund has unfunded commitments in the amount of $75,000 for Impressionism Capital Fund I, L.P. respectively. As of March 31, 2026, the Fund reasonably believes its assets will provide adequate cover to satisfy all its unfunded commitments.

9. Indemnifications

The Fund indemnifies the Fund’s officers and Board of Trustees for certain liabilities that might arise from their performance of their duties to the Fund. Additionally, in the normal course of business the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

10. Federal tax information

The Fund has elected and intends to continue to elect to be treated as a registered investment company (“RIC”) for U.S. federal income tax purposes, and it has qualified, and expects each year to continue to qualify as a RIC for U.S. federal income tax purposes. As such, the Fund generally will not be subject to U.S. federal corporate income tax, provided that it distributes all of its net taxable income and gains each year.

In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also the Fund’s intention to declare as dividends in each calendar year at least 98% of its net investment income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ended October 31) plus undistributed amounts from prior years.

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

10. Federal tax information (cont.)

At March 31, 2026, gross unrealized appreciation and depreciation of investments owned by the Fund, based on cost for federal income tax purposes were as follows:

The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.

The Fund has selected a tax year-end of September 30.

As of September 30, 2025, the components of accumulated earnings (deficit) on a tax basis were as follows:

The tax character of the distributions paid during the fiscal years ended September 30, 2025 and September 30, 2024 were as follows:

The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.

11. Risk factors

An investment in the Fund involves a high degree of risk and may be considered speculative. The following list is not intended to be a comprehensive listing of all the potential risks associated with the Fund. The Fund’s prospectus provides further details regarding the Fund’s risks and considerations.

•        The Fund’s inception date was April 13, 2022 and it has a very limited operating history. The Adviser expects that it may take up to two years for the Fund to become primarily invested in Portfolio Companies and Portfolio Funds. Fund performance may be lower during this “ramp-up” period, and may also be more volatile, than would be the case after the Fund is more fully invested. If the Fund were to fail to successfully implement its investment strategies or achieve its investment objective, performance may be negatively impacted, and any resulting liquidation of the Fund could create negative transaction costs for the Fund and tax consequences for investors. There can be no assurance that the Fund will be able to identify, structure, complete and realize upon investments that satisfy its investment objective, or that it will be able to fully invest its offering proceeds.

Cashmere Fund
NOTES TO THE FINANCIAL STATEMENTS
March 31, 2026

11. Risk factors (cont.)

•        The Adviser is recently formed and had no prior experience managing investment portfolios. The Adviser may be unable to successfully execute the Fund’s investment strategy or achieve the Fund’s investment objective.

•        There is no public market for Fund Shares and none is expected to develop. Shares are subject to substantial restrictions on transferability. Although the Fund began making semiannual offers to repurchase its Shares beginning in February 2023 (expected to be limited to no more than 5% of the Fund’s outstanding Shares for each such offer), these offers may be oversubscribed and there is no guarantee that you will be able to sell all of the Shares you desire in any semiannual repurchase offer.

•        While venture capital investments offer the opportunity for significant gains, these investments also involve an extremely high degree of business and financial risk and can result in substantial losses. Investments in start-up and growth-stage private companies typically involve greater risks than investments in shares of companies that have traded publicly on an exchange for extended periods of time.

•        Private companies in which the Fund invests are generally not subject to SEC reporting requirements, are not required to maintain accounting records in accordance with generally accepted accounting principles and are not required to maintain effective internal controls over financial reporting.

•        The Fund’s investments in Portfolio Companies may be heavily negotiated and may incur significant transactions costs for the Fund.

•        A significant portion of the Fund’s investment portfolio will be illiquid investments recorded at fair value as determined in good faith in accordance with policies and procedures approved by the Board and, as a result, there may be uncertainty as to the value of Fund investments and the NAV of Fund Shares.

12. Subsequent events

In preparing these financial statements, management has evaluated subsequent events through the date of issuance of the financial statements included herein and has determined that there are no additional subsequent events that require disclosure or adjustment to the financial statements.

Cashmere Fund
TRUSTEES AND OFFICERS
March 31, 2026 (Unaudited)

Cashmere Fund
TRUSTEES AND OFFICERS — (CONTINUED)
March 31, 2026 (Unaudited)

____________

1        Each Trustee serves for an indefinite term, until his or her death, resignation, retirement, removal, bankruptcy, adjudicated incompetence or other incapacity to perform the duties of the office.

2        The “Fund Complex” consists of the Fund only.

3        Mr. Randall is considered to be an “interested person” of the Fund (as that term is defined by Section 2(a)(19) in the Investment Company Act) based on his positions with the Adviser and its parent company, Sweater Inc., and because he is an owner of Sweater Inc.

Board Leadership and Structure

The Board is currently comprised of three Trustees, two of whom are Independent Trustees, which means they are not interested persons of the Fund or of the Fund’s Adviser. The Board meets periodically throughout the year to discuss and consider matters concerning the Fund and to oversee the Fund’s activities, including its investment performance, compliance program and risks associated with the Fund’s activities. An Independent Trustee currently serves as Chair of the Board.

Cashmere Fund
ADDITIONAL INFORMATION
March 31, 2026 (Unaudited)

Proxy voting — A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies during the 12-month period ended June 30 are available without charge upon request by (1) calling the Fund at 1-888-577-7987 and (2) from Fund documents filed with the Securities and Exchange Commission (“SEC”) on the SEC’s website at www.sec.gov.

Portfolio holdings — The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on form N-PORT. The Fund’s Form N-PORT is available on the SEC’s website at www.sec.gov. You may also obtain copies by calling the Fund at 1-888-577-7987.

Dividend Reinvestment — The Fund operates under a dividend reinvestment plan administered by the Fund’s Administrator as dividend reinvestment agent. Pursuant to the plan, any distributions by the Fund to its shareholders, net of any applicable U.S. withholding tax, will be reinvested in Shares of the Fund. Shareholders automatically participate in the dividend reinvestment plan, unless and until an election is made to withdraw from the plan on behalf of such participating shareholder. Shareholders who do not wish to have distributions automatically reinvested should so notify the Administrator in writing at Cashmere Fund c/o UMB Fund Services, Inc., PO Box 2175, Milwaukee, Wisconsin 53201-2175.

Corporate Dividends Received Deduction — For the tax year ended September 30, 2025, the Sweater Cashmere Fund had 0.00% of dividends paid from net investment income qualified for the 70% dividends received deduction available to corporate shareholders.

Qualified Dividend Income — For the tax year ended September 30, 2025, the Sweater Cashmere Fund had 0.00% of dividends paid from net investment income, designated as qualified dividend income.

Approval of Investment Management Agreement — The Cashmere Fund (the “Fund”) is overseen by a Board of Trustees (the “Board,” the members of which are referred to as the “Trustees”) consisting of three Trustees, two of whom are not “interested persons” of the Fund (the “Independent Trustees”), as defined in the Investment Company Act of 1940 (the “1940 Act”). The Board met in-person on February 5, 2026 (the “Meeting”) to consider the renewal of the investment management agreement (the “Agreement”) between the Fund and Sweater Industries LLC (the “Adviser”), and of the Subadvisory Agreement between Forma Cashmere LLC (the “Subadviser”) and the Adviser on behalf of the Fund.

In connection with this, the Board reviewed and discussed at its Meeting materials relating to its consideration of the Agreement and the Subadvisory Agreement. The Board also considered all factors it believed relevant with respect to the Fund, including: (a) the nature, extent, and quality of services provided by the Adviser and the Subadviser to the Fund, respectively; (b) the extent to which the Adviser and the Subadviser may realize economies of scale with respect to its respective management of the Fund; (c) costs of the services provided and profits realized by the Adviser under the Agreement and the Subadviser under the Subadvisory Agreement; (d) the management fee paid to the Adviser under the Agreement and the Subadviser under the Subadvisory Agreement; and (e) any fall-out benefits to the Adviser and the Subadviser, respectively, with respect to its management of the Fund.

The Trustees were advised by Fund legal counsel regarding their fiduciary duties pertaining to renewal of investment advisory contracts and the factors they should consider in evaluating advisory agreements. The Independent Trustees, through Fund legal counsel, provided a request to the Adviser and the Subadviser and received materials from the Adviser and the Subadviser in response to such request. The information provided in response to their requests was in addition to information received by the Board throughout the year, both in writing and during meetings, regarding the Fund, the Adviser, and the Subadviser, including Fund performance, expense ratios, portfolio composition, and regulatory compliance.

In considering whether to approve the Agreement and the Subadvisory Agreement, and reviewing the related materials, the Board met with relevant personnel of the Adviser and the Subadviser, and reviewed with them materials prepared by the Adviser and the Subadviser and materials provided by legal counsel to the Fund. The Board also met with legal counsel to the Fund, who also serves as the Fund’s Chief Compliance Officer, and with the Fund’s Treasurer.

Cashmere Fund
ADDITIONAL INFORMATION — (CONTINUED)
March 31, 2026 (Unaudited)

The Independent Trustees also met with the Fund’s Chief Compliance Officer and Fund legal counsel in executive session, outside the presence of the Adviser’s and the Subadviser’s personnel and the non-Independent Trustee, in connection with their consideration of the Agreement.

The Board determined that, given the totality of the information provided with respect to the Agreement and the Subadvisory Agreement, the Board had received sufficient information to renew both the Agreement and the Subadvisory Agreement.

In deciding to approve the renewal of the Agreement and the Subadvisory Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, and considered a variety of factors in its analysis including those discussed below. The Board did not allot a particular weight to any one factor or group of factors. It is also important to note that the Board may have considered factors and information discussed and reviewed at previous meetings as part of its considerations, and the discussion below may not include all of the factors and information considered by the Board.

Nature, Extent, and Quality of Services and Fund Performance

As part of their review, the Trustees examined the Adviser’s ability to provide investment management services to the Fund. The Trustees considered the qualifications and experience of the Adviser’s personnel who are primarily responsible for managing the Fund, as well as the qualifications and experience of certain other key individuals at the Adviser who provide services to the Fund. The Trustees also considered the Adviser’s investment philosophy and the Adviser’s representations regarding its research and decision-making processes, its ability to attract and retain capable personnel, the capability of the Adviser’s senior management and staff, and the level of skill required to manage the Fund. The Trustees spent considerable time reviewing the staffing levels at the Adviser. The Trustees discussed with the Adviser’s representatives the role of the Adviser and its responsibilities day-to-day in managing the Fund, versus the role and responsibilities of the Subadviser.

The Trustees considered that the Adviser’s services include overseeing the Subadviser’s provision of a continuous investment program for the Fund, ensuring that the Fund adhered to its investment restrictions, complying with regulatory obligations, overseeing the Subadviser’s due diligence on potential portfolio companies and private funds, overseeing negotiations to invest in proposed portfolio companies and private funds, responsibilities relating to valuing Fund assets, and assisting in the Subadviser’s marketing efforts.

The Board also considered other non-advisory services provided by the Adviser to the Fund, such as the services of Adviser employees as Fund officers and other personnel provided that are necessary for Fund operations. It also considered the significant technology investment made by the Adviser with respect to the Fund’s shareholder interface. The Board noted that the Adviser also organizes Board meetings and the preparation of Board meeting materials, and those Adviser employees serving as Fund officers oversee and manage the other Fund service providers.

The Trustees also considered the Subadvisory Agreement, and examined the Subadviser’s ability to provide investment management services to the Fund. The Trustees considered the qualifications and experience of the Subadviser’s personnel who are primarily responsible for managing the Fund, as well as the qualifications and experience of certain other key individuals at the Subadviser who provide services to the Fund. The Trustees considered the Subadviser’s investment philosophy and the Subadviser’s representations regarding its research and decision-making processes, its ability to attract and retain capable personnel, the capability of the Subadviser’s senior management and staff, and the level of skill required to manage the Fund. The Trustees spent considerable time reviewing the staffing levels at the Subadviser, and the Subadviser’s representations regarding its capitalization.

The Trustees discussed with the Subadviser’s representatives the role of the Adviser and the Subadviser’s responsibilities in the day-to-day management of the Fund. The Trustees considered that the Subadviser’s services include providing a continuous investment program for the Fund, day-to-day management of the Fund’s portfolio, ensuring that the Fund adhered to its investment restrictions, complying with regulatory obligations, performing due diligence on potential portfolio companies and private funds, engaging in negotiations to invest in proposed portfolio companies and private funds, and assisting in marketing the Fund.

Cashmere Fund
ADDITIONAL INFORMATION — (CONTINUED)
March 31, 2026 (Unaudited)

The Board also considered other non-advisory services provided by the Subadviser to the Fund, such as assistance in marketing the Fund.

The Board considered that it reviews data on the short-term and longer-term total returns of the Fund in connection with each quarterly Board meeting. The Trustees reviewed information regarding the performance of the Fund and the performance of certain peer group funds, and information about the Fund’s performance against the performance of the S&P 600 index. The Trustees noted that the Fund’s performance was in-line with their expectations.

The Trustees considered conditions that might affect the Adviser’s and the Subadviser’s ability to continue to provide services to the Fund. The Trustees considered information and representations regarding the Adviser’s and the Subadviser’s capitalization and ability to continue to meet their respective financial obligations to the Fund.

Based on its review, the Board concluded that the nature, extent and quality of services provided by the Adviser to the Fund under the Agreement, and by the Subadviser to the Fund under the Subadvisory Agreement, were satisfactory.

Fees, Expenses and Profitability

The Trustees next considered the management fees paid by the Fund under the Agreement. The Trustees reviewed information concerning the Fund’s management fee in comparison to the management fees of peer group funds. The Trustees noted that the Fund’s contractual management fee (before any waivers or expense reimbursements) of 2.50% was higher than the contractual management fees charged by all but one of the six peer group funds. The Trustees considered, however, that two of the peer group funds with management fees lower than the Fund also pay an additional incentive fee that varies based on fund performance (in contrast to the Fund, which pays no incentive fee), which is in addition to the management fee. The Trustees discussed with the Adviser the Fund’s management fee and comparisons to the fees and expenses paid by competing funds, including those typically charged by advisers to private venture capital funds. The Trustees also considered that the Adviser has agreed to reduce its management fee and/or reimburse Fund expenses to the extent that the Fund’s total annual operating expenses (excluding certain expenses) would exceed 4.85% through December 11, 2026, subject to a three-year reimbursement of the Adviser if future Fund expenses should drop below this rate.

Because the Fund is the Adviser’s only advisory client for which it receives compensation, there was no information for the Board to consider regarding the services the Adviser provides or the fees the Adviser charges to other advisory clients.

The Trustees reviewed information about the profitability of the Agreement to the Adviser. The Trustees noted the amount of advisory fees received by the Adviser with respect to the Fund, and fees for Chief Executive Officer and Chief Compliance Officer and regulatory services. The Board also reviewed information provided by the Adviser on the costs of advising the Fund and representations made by the Adviser regarding its capitalization and funding.

The Trustees also discussed with the Adviser the terms of the Adviser’s agreement with the Subadviser, including the portion of the advisory fee paid by the Adviser to the Subadviser under the terms of the Subadvisory Agreement.

The Trustees next considered the subadvisory fees paid by the Adviser to the Subadviser. The Trustees noted their review earlier in the meeting regarding the Fund’s management fee in comparison to the management fees of peer group funds. The Trustees considered the Subadviser’s representation that, because of the expense cap in place, the Subadviser was not retaining any subadvisory fees from the Fund that it hadn’t offset by paying Fund expenses, and that the Subadviser has reimbursed Fund expenses to keep the level of annual Fund expenses below the level of the expense cap. The Trustees discussed with the Subadviser the subadvisory fee and comparisons to the fees and expenses paid to advisers of competing funds, including those typically charged by advisers to private venture capital funds. The trustees also considered the Subadviser’s representations regarding fees it receives for managing a private venture capital fund.

The Trustees reviewed information about the profitability of the Subadvisory Agreement to the Subadviser. The Board noted that, because of the Subadviser’s obligation under the Fund’s expense cap agreement, it was not retaining any subadvisory fees (after reimbursing Fund expenses).

Cashmere Fund
ADDITIONAL INFORMATION — (CONTINUED)
March 31, 2026 (Unaudited)

The Trustees considered and discussed with the Adviser and the Subadviser the use of Fund assets for marketing the Fund and considered the Adviser’s and the Subadviser’s respective representations that none of these amounts are retained by the Adviser, the Subadviser, or their respective personnel. The Trustees also noted that they review information on Fund marketing expenses at each quarterly meeting.

The Trustees, including all of the Independent Trustees, concluded that the current management fee for the Fund represents reasonable compensation in light of the nature and quality of the Adviser’s services to the Fund, the fees paid by competitive funds, the sharing of advisory fees with the Subadviser, and the costs incurred by the Adviser in providing services to the Fund.

The Trustees, including all of the Independent Trustees, also concluded that the subadvisory fee for the Fund represents reasonable compensation in light of the nature and quality of the Subadviser’s services to the Fund, the fees paid by competitive funds, the sharing of advisory fees the Adviser, and the costs incurred by the Subadviser in providing services to the Fund.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale

The Trustees also considered the extent to which economies of scale might be realized by the Adviser as Fund assets grow. The Trustees determined that it does not appear that the Adviser is realizing benefits from economies of scale to such an extent that the management fee should be reduced or that break points in the management fee should be implemented at this time.

The Trustees also considered the extent to which economies of scale might be realized by the Subadviser as Fund assets grow. The Trustees determined that it does not appear that the Subadviser is realizing benefits from economies of scale. The Trustees noted that, because of the Fund’s small size and the Subadviser’s obligation to cap Fund expenses, the Subadviser is not currently retaining any net subadvisory fees with respect to its management of the Fund.

Conclusion

Based on its review, including its consideration of each of the factors referred to above, the Board, including all of the Independent Trustees, concluded that the terms of the Agreement and the Subadvisory Agreement, respectively, are fair and reasonable, and that the renewal of the Fund’s Agreement and Subadvisory Agreement, respectively, is in the best interests of the Fund.