European Private Equity
Opening access to an attractive marketThe strategy focus is on the small and lower mid-market segment of the European buy-out private equity market, companies with an enterprise value of €10 million to €150 million. This market tends to have relatively less competing capital than the larger private equity market segments, yet a much larger number of potential small-scale deals available. We therefore feel this segment offers the most opportunities for strong future returns.
Hybrid: a smarter investment engine
As a so-called hybrid, the strategy will target a well-diversified combination of direct deals, in the form of ‘co-investments’, alongside experienced private equity General Partners and indirect investments in ‘under-the radar’ private equity funds. The target is to build a portfolio with a roughly 50/50 split between direct deals and private equity funds. This mix has clear benefits for you as an investor:
- Co-investments involve much lower fees than private equity funds;
- Likely shorter J-curve than funds that invest solely in private equity funds;
- The hybrid mix creates good portfolio diversification, and thus strong risk diversification.
“Providing private investors access to an attractive and exclusive niche market with strong opportunities for future growth”
Experienced specialistsKempen is well-known for being a small-cap specialist and value-investing boutique when it comes to listed companies. We will build on this experience by focusing on the smaller end of the private equity market, where we believe value investing is also possible as deal valuations remain attractive.
The team managing the Kempen European Private Equity Fund averages over 15 years’ experience advising pension funds, family offices and Ultra-High Net Worth Individuals on their private market investments. We maintain a strong network, know all the relevant ‘under-the-radar’ players across Europe and have the expertise needed to manage direct co-investment deals effectively.
All in all, we believe this new fund will provide diversified access to an exclusive asset class in a new and innovative way, managed by an experienced team according to Kempen’s small-cap values.
The Kempen European Private Equity Fund is available in the Netherlands, Belgium and Switzerland. The minimum investment is €250,000.