European Direct Lending Pool Master - Class IX

European Direct Lending Pool (Master) - Class IX

Profile

The European Direct Lending Pool (Master) will invest in a pool of - mostly illiquid and closed-end - Private Debt investment funds, managed by direct lending managers. These direct lending managers provide senior secured loans to medium-sized companies across a wide range of industries, in order to provide such companies with new capital for acquisitions, growth or refinancing. These loans are only provided following a highly selective and rigorous underwriting process, with a focus on capital preservation and downside protection. Loans to businesses which are heavily exposed to cyclical industries will generally be avoided. The Fund will mainly focus on the following European countries: the United Kingdom, France, Germany, Belgium, The Netherlands, Luxembourg, Denmark, Finland, Norway and Sweden. The Fund incorporates the environmental, social and governance (â€œESGâ€) criteria of the Management Company in the investment process.

The investment objective of the Fund is to achieve capital growth through exposure to a diversified portfolio of mainly senior secured loans issued by mainly European borrowers. The Fund primarily aims to generate a long-term return in excess of the Credit Suisse Western European Leveraged Loan Index all denominations hedged to Euro (the Index), comprising capital gains or losses plus net dividends. The instruments the underlying funds invests in are not necessarily included in the Index, which is therefore only used for performance reference.

Prospective investors may invest in the Fund by submitting Capital Commitments by means of a commitment form and by opening an account with the administrative agent, J.P. Morgan Bank Luxembourg S.A. Both forms can be found under the tab documents. Class IX Shares are capitalisation shares that can only be subscribed by Professional Investors and/or Institutional Investors who are clients of the Management Company, meet the minimum commitment requirement and meet other qualification requirements established by the Management Company. The minimum initial commitment is EUR 15,000,000.

Management team

Theo Nijssen, Ulrike Beyrich, Cas de Bruijne

More information can be found on the documents page of this fund

European Direct Lending Pool (Master) (the "Sub-Fund") is a sub-fund of Kempen Alternative Markets Fund Sicav-RAIF (the â€œFundâ€), domiciled in Luxembourg. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of the Fund at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the prospectus (available in English). This document of the Fund is available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

The Sub-fund is registered for offering in a limited number of countries. The countries where the Sub-fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

The Fund is only available for professional investors.

Dividends

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Distributing	No

Asset class allocation (2020-08-31)

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	Min	Max	Strategic policy	Current allocation

Ongoing charges

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Management fee i	0.20 %
Service fee i	0.13 %
Taxe d'abonnement i	0.01 %
Indirect costs i	0.97 %

The service fee is determined annually on basis of the net asset value as of the last day of the previous financial year:
< or equal to EUR 450 million: 0.125%
Between EUR 450 million and EUR 700 million: 0.10%
Between EUR 700 million and EUR 1 billion: 0.075%
>EUR 1 billion: 0.05%

Share class details

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Share class	IX
Investor type	Institutional
Distributing	No
Benchmark i	Credit Suisse Western European Leveraged Loan Index
Objective	The Fund primarily aims to generate a long-term return in excess of the Credit Suisse Western European Leveraged Loan Index all denominations hedged to Euro (the Index), comprising capital gains or losses plus net dividends.
Duration hedged	No
Investment category	Alternative Credit
Domicile	Luxembourg
May be offered to professional investors only in	The Netherlands
UCITS status i	No
Status	Open-end i
Base currency	EUR
Share class currency	EUR
Administrator	J.P. Morgan Bank Luxembourg S.A.
Management company	Kempen Capital Management NV
Depositary and custodian	J.P. Morgan Bank Luxembourg S.A.

Tradability

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Minimum subscription	Initial subscription amount â‚¬15,000,000 additional subscriptions â‚¬50,000
Listed	no
Subscription/Redemption Frequency	Quarterly on the first business day of January, April, July and October
ISIN i	LU2212033307
Entry period purchase order	In order to be executed, the commitment orders must be received by Kempen Capital Management 10 business days before the valuation day.
Entry period sell order	In order to be executed, orders must be received by J.P. Morgan Bank Luxembourg S.A. 30 calendar days before the valuation day. Your distributor may use longer entry periods.

This share class of the Fund is only available for professional and/or institutional investors.

The Management Company, on behalf of the Fund, will generally call capital when needed to fund underlying investments (including expected investments in the coming quarter and including those investments already done with capital borrowed by the Fund in the previous quarter), for the payment of fees, to serve redemptions or for other purposes. Calls will be directed, on a pro-rata basis relevant to each Investorâ€™s remaining Commitment, until their committed capital has been fully called.

Subject to the three year lock-up period each Shareholder may apply, on a quarterly basis, for the redemption of all or part of his shares in the Fund which are eligible for redemption in a fixed amount. However, Investors should be aware that it is not guaranteed that redemption requests will be executed in their entirety and that it may occur that redemption requests are only partially executed, if at all, due to the lack of available cash in the portfolio.

Factsheets

2020-08-31Factsheet - English

Annual Reports

2019-12-31Annual Report - English

Prospectus

Prospectus - English

Formal documents other

Trading Calendar 2021 - English

Commitment Order Form - English

Application Form Institutional Investors - English

Articles of Association - English

KEMPENâ€™S VISION AND MISSION

Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.

KEMPEN WIDE APPROACH TO RESPONSIBLE INVESTMENT

We are committed to create sustainable alpha. The four pillars of our ESG-policy are:

ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.
Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.
Active ownership: Being responsible stewards of our clientsâ€™ capital and using our influence through engagement and voting to improve corporate behavior on specific ESG issues and achieve positive change
Positive impact: Investing with an objective to achieve positive real-world outcomes and impact, such as contributing to the UN Sustainable Development Goals.

To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companiesâ€™ ESG performance. This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.

Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.

CLIMATE CHANGE

As a long term investor, we believe climate change represents a systemic risk facing the economy, society and environment, and we want to consider the risks and opportunities this presents to our investments in the coming decades. We have therefore set a long-term commitment (2050) and a mid-term ambition (2030).

2050: Net zero investor
2030: Aligned with a Paris Agreement pathway (listed and non-listed investments)

The Kempen climate change policy can be found here (under climate change policy).

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

Kempenâ€™s ESG policy is fully implemented in our fundâ€™s investment process with the key pillars being our approaches to: Exclusion, ESG integration and Active ownership. Within this, it is important to note that the Fund will invest in a pool of - mainly illiquid â€“ bespoke Private Debt funds which are managed by carefully selected direct lending managers.

1. Exclusion

On the basis of the investment restrictions as described in the limiting partnership agreements between the direct lending manager of the respective direct lending fund and the Management Company of the Fund, the underlying customized Private Debt funds adhere to a number of bespoke ESG exclusions and are prohibited to invest in in businesses that:

Generate significant revenues from the manufacturing or distribution of controversial weapons;
Generate significant revenues from the manufacturing or distribution tobacco products;
Use harmful or exploitative forms of forced or child labour;
Engage in coal mining as their main activity or are heavily reliant on coal;
Obtain the majority of their revenues from tar sands.

All selected direct lending managers provide full portfolio transparency and detailed reporting on every transaction including ESG considerations. Kempen also receives quarterly custom ESG reporting which includes but is not limited to an overview of key ESG metrics of the respective portfolio, a summary quarterly investment activity including key ESG considerations, commentary on any ESG issues that occurred during the quarter.

2. ESG integration

ESG considerations are fully integrated in the investment process of the selected direct lending managers, both pre- and post-investment. Incorporating ESG risks into investment analysis is particularly relevant to Private Debt investing given the illiquid nature of the loans and the longer-term credit view the direct lending managers take on the borrowers as ESG risks can potentially have a material impact on borrowerâ€™s long-term financial performance.

Formal ESG integration in the investment due diligence process ensures that the direct lending managers are aware of all relevant ESG risks and can make informed investments decisions with knowledge of these. The extent to which they are critical to the overall investment decision varies from investment to investment.

Post-investment the direct lending managers monitor all relevant news flows with regards to ESG issues and formally monitor ESG risks as part of the regular monitoring cycle.

All selected direct lending managers are signatories of the UN-supported Principles for Responsible Investment (UN PRI).

3. Active ownership

Kempen believes that providers of debt have a role in engaging with borrowers on ESG matters that have the potential to impact investment returns. The selected direct lending managers maintain an active dialogue with the companies in which we invest in order to monitor the management of material ESG risks, as well as potentially to influence practices should they feel material ESG risks could be better managed by the company. The managers do so by engaging with company management directly as well as with other relevant key stakeholders. The selected direct lending managers also regularly obtain advisory board seats where they can also add ESG issues to the agenda.

ESG Report

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