SCHEDULE: Context Capital Takes 5.1% Stake in Cartesian Growth II

Context Capital Management and related entities have disclosed a 5.1% beneficial ownership stake in Cartesian Growth Corp II's Class A Ordinary Shares.

Summary

• Context Capital Management, LLC, along with Michael S. Rosen, William D. Fertig, Charles E. Carnegie, and Context Partners Master Fund, L.P., reported beneficial ownership of 450,000 Class A Ordinary Shares of Cartesian Growth Corp II.
• This represents 5.1% of the Class A Ordinary Shares outstanding.
• The shares were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.
• The percentage is based on 8,826,092 Class A Ordinary Shares outstanding as of November 3, 2025.
• This outstanding share count reflects the redemption of 4,173,618 Class A Ordinary Shares for cash by other holders.

Sentiment

Score: 4

Explanation: While a new institutional investor taking a 5.1% stake is a positive, the significant redemption of 4,173,618 shares by other holders indicates substantial investor skepticism or dissatisfaction, which weighs heavily on the overall sentiment.

Positives

• A significant institutional investor, Context Capital Management, has taken a 5.1% stake in Cartesian Growth Corp II, indicating potential confidence in the company's future.

Negatives

• The filing indicates that 4,173,618 Class A Ordinary Shares were redeemed for cash by other holders, which represents a substantial reduction in the outstanding share count and could signal a lack of confidence from a significant portion of the previous shareholder base.

Risks

• The significant redemption of 4,173,618 Class A Ordinary Shares by other holders for cash could indicate underlying issues or a lack of investor confidence in Cartesian Growth Corp II's prospects.
• The reduced share count could lead to lower liquidity for the remaining shares.

Future Outlook

The filing does not provide any forward-looking statements or guidance from the issuer or the reporting persons regarding the future outlook of Cartesian Growth Corp II.

Industry Context

This filing indicates a significant ownership stake by an investment firm in a Special Purpose Acquisition Company (SPAC). The substantial share redemptions by other holders are a common trend in the current SPAC market, where investors often redeem shares if a de-SPAC transaction is not appealing or if market conditions are unfavorable, leading to a smaller public float for the post-merger entity.

Comparison to Industry Standards

• The 5.1% stake by Context Capital Management is a notable institutional investment, often seen as a vote of confidence, similar to other hedge funds taking significant positions in SPACs or early-stage growth companies.
• The redemption rate, where 4,173,618 shares were redeemed out of an implied initial total of 13,000,000 (8,826,092 + 4,173,618), represents approximately 32% of the initial shares. This level of redemption is not uncommon in the current SPAC environment, where redemption rates have frequently exceeded 50% or even 70% for many SPACs, such as those seen with Digital World Acquisition Corp. (DWAC) or Gores Holdings VI (GHVI) prior to their respective business combinations.

Stakeholder Impact

• Shareholders: The entry of Context Capital Management as a significant shareholder could be viewed positively, potentially bringing institutional oversight and expertise. However, the substantial redemptions by other shareholders reduce the overall investor base and potentially liquidity, which could negatively impact remaining shareholders.
• Company (Cartesian Growth Corp II): The reduced share count post-redemption means a smaller pool of capital for any potential business combination, which could impact the size or terms of a future deal.

Next Steps

• The filing does not mention any specific future actions, events, or milestones for Cartesian Growth Corp II or the reporting persons.

Key Dates

Recommendation

While the entry of a new institutional investor like Context Capital Management with a 5.1% stake could be seen as a positive signal, the significant redemption of over 4.1 million shares by other holders is a strong negative indicator. This suggests a substantial portion of the previous investor base lacked confidence, potentially impacting the SPAC's ability to complete a robust de-SPAC transaction or its post-merger valuation. Given these conflicting signals, a 'hold' recommendation is appropriate to observe how the company navigates its next steps, particularly regarding its business combination, and to assess the impact of the reduced float and investor sentiment.

Keywords

Cartesian Growth Corp II, Context Capital Management, Schedule 13G, Beneficial Ownership, Class A Ordinary Shares, SPAC, Institutional Investment, Share Redemption