- Kempen
- Kempen Private Markets Fund Class D
Kempen Private Markets Fund Class D
Profile
The Fund aims to offer diversified exposure across private equity, infrastructure, land (including farmland and timberland) and private real estate. The worldwide investment focus will lead the Fund to invest in both developed and emerging markets.
Indicative weights and bandwidths for the underlying categories are as follows:
• Private Equity: 40% (30-50% bandwidth)
• Infrastructure: 20% (0-30% bandwidth)
• Land: 20% (0-30% bandwidth)
• Real Estate: 20% (0-30% bandwidth)
The Fund will primarily consist of participations in investment funds managed by third-party investment managers. With the aim of reducing investment risks, the underlying investment funds will be selected based on several criteria, including but not limited to investment strategy, pedigree and experience of the investment team, track record, responsible investment approach, quality of the organization, and (commercial) terms of investment. The Fund will target returns in excess of the market return expectations for each strategy and asset class.
Management team
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents of the Fund are 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.
The Shareholder is subject to an initial lock-up period of 3 years for each investment.
In Switzerland, the Statutes, the Prospectus, the PRIIP-KIDs, the Annual Report and, if applicable, the Semi-Annual Report and/or any such documents, which are required for the approval in compliance with the applicable foreign law, may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. In respect of the units distributed in and from Switzerland, the place of performance and jurisdiction is the registered office of the Representative.
As we all know, Private Markets investments are long-term, illiquid assets and it typically takes several years for the committed capital to be drawn and to be put to work effectively, in diversified private portfolios and to actually start generating returns. Normally, these type of assets are valued at cost for at least the first 12 months after they have been acquired and as such there is no visible return to report yet. However, as we invest in a mix of closed-end and open-end funds, we have been able to put to work a substantial part of the capital already, which should start to generate returns in the next few quarters to come. When we are further underway and the portfolio is up and running, we will be able to start reporting meaningful performance figures.
Portfolio developments per 2020-03-31
The capital entrusted to the Kempen Private Markets Fund by investors increased with EUR 17.2 million to EUR 130 million. We completed two investments in the past quarter. First of all, together with the German investment company Premium Equity Partners, we invested in LKE. A German market leader in the development and production of mobile logistics system solutions such as transport containers, trolleys and tugger trains for intralogistics, parcel delivery and the aviation sector. A typical German ‘Mittelstand Unternehmung’ founded in 1994 with three production sites in Germany as well as sales locations in the UK and Poland. We enabled a management buyout for LKE’s management team, which as a co-owner is driven to further grow LKE, both autonomously and through targeted acquisitions. The aim is, together with Premium Capital Partners and the management team, to expand internationally and position the company as a provider of integrated intralogistics system solutions.
In addition, we further expanded our partnership with Northzone with a commitment to Northzone Conviction I. Northzone launched this late-stage venture fund specifically to keep investing in subsequent financing rounds of winning companies from their early-stage funds. Like other successful early-stage venture investors, Northzone had struggled to take advantage of its (‘pre-emptive’) investment rights, as at some point they reach capital and allocation limits in their early-stage funds. They already had to give up their pre-emptive rights in Spotify, iZettle and Avito before. Even when participating in the late-stage investment rounds, these investments would have yielded a gross-investment multiple of 12x on average. Northzone Conviction I will participate in subsequent funding rounds for the most promising early-stage fund winners. We participated in the first closing of the fund, that was exclusively offered to current investors in Northzone at very attractive conditions. An additional advantage is a shorter investment horizon and further spread within our Venture Capital portfolio towards more late-stage investments.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents of the Fund are 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.
The Shareholder is subject to an initial lock-up period of 3 years for each investment.
In Switzerland, the Statutes, the Prospectus, the PRIIP-KIDs, the Annual Report and, if applicable, the Semi-Annual Report and/or any such documents, which are required for the approval in compliance with the applicable foreign law, may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. In respect of the units distributed in and from Switzerland, the place of performance and jurisdiction is the registered office of the Representative.
We refer tot he latest quarterly investor report regarding comments on performance developments.
Dividends
| Distributing | No |
Risk analysis (ex post) per 2020-04-30
| Since inception | |
|---|---|
| Maximum drawdown i | 0.00 % |
| Information ratio i | 0.00 |
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents of the Fund are 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.
The Shareholder is subject to an initial lock-up period of 3 years for each investment.
In Switzerland, the Statutes, the Prospectus, the PRIIP-KIDs, the Annual Report and, if applicable, the Semi-Annual Report and/or any such documents, which are required for the approval incompliance with the applicable foreign law, may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. In respect of the units distributed in and from Switzerland, the place of performance and jurisdiction is the registered office of the Representative.
€ 135 million committed capital
PER 31 March 2020
Source: Kempen Capital Management, per 31 March 2020
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents of the Fund are 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.
The Shareholder is subject to an initial lock-up period of 3 years for each investment.
In Switzerland, the Statutes, the Prospectus, the PRIIP-KIDs, the Annual Report and, if applicable, the Semi-Annual Report and/or any such documents, which are required for the approval in compliance with the applicable foreign law, may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. In respect of the units distributed in and from Switzerland, the place of performance and jurisdiction is the registered office of the Representative.
Ongoing charges
| Management fee i | 0.80 % |
| Service fee i | 0.17 % |
| Taxe d'abonnement i | 0.01 % |
| Indirect costs i | 1.51 % |
| Expected ongoing charges i | 2.49 % |
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents of the Fund are 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.
The Shareholder is subject to an initial lock-up period of 3 years for each investment.
In Switzerland, the Statutes, the Prospectus, the PRIIP-KIDs, the Annual Report and, if applicable, the Semi-Annual Report and/or any such documents, which are required for the approval in compliance with the applicable foreign law, may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. In respect of the units distributed in and from Switzerland, the place of performance and jurisdiction is the registered office of the Representative.
Share class details
| Share class | D |
| Investor type | Institutional |
| Distributing | No |
| Investment category | Private Markets |
| Inception date | 2019-07-01 |
| Domicile | Luxembourg |
| May be offered to professional investors only in | Belgium, France, Germany, Italy, Switzerland, The Netherlands, United Kingdom |
| UCITS status i | No |
| Status | Open-end i |
| Base currency | EUR |
| Share class currency | EUR |
| Management company | Kempen Capital Management N.V. |
| Depositary and custodian | J.P. Morgan Bank Luxembourg S.A. |
Tradability
| Minimum subscription | Initial subscription and minimal holding amount €125,000 additional subscriptions €50,000 |
| Listed | no |
| Subscription/Redemption Frequency | Subscriptions quarterly on the first business day, redemptions quarterly, after the initial lock-up period of 3 years |
| ISIN i | LU1789511497 |
| 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. 90 calender days before the valuation day. Your distributor may use longer entry periods. |
| Details | The Shareholder is subject to initial lock-up period of 3 years for each investment during which the Shareholder may not redeem its Shares. |
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents of the Fund are 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.
The Shareholder is subject to an initial lock-up period of 3 years for each investment.
In Switzerland, the Statutes, the Prospectus, the PRIIP-KIDs, the Annual Report and, if applicable, the Semi-Annual Report and/or any such documents, which are required for the approval in compliance with the applicable foreign law, may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. In respect of the units distributed in and from Switzerland, the place of performance and jurisdiction is the registered office of the Representative.
Investment Letter
Factsheets
Annual Reports
Prospectus
Key Information Document
Formal documents other
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents of the Fund are 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.
The Shareholder is subject to an initial lock-up period of 3 years for each investment.
In Switzerland, the Statutes, the Prospectus, the PRIIP-KIDs, the Annual Report and, if applicable, the Semi-Annual Report and/or any such documents, which are required for the approval in compliance with the applicable foreign law, may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. In respect of the units distributed in and from Switzerland, the place of performance and jurisdiction is the registered office of the Representative.
Kempen's vision & 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:
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ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.
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Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.
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Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change
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Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.
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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 companies’ 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.
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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.
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Our full voting records are available here.
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OUR FUND APPROACH TO RESPONSIBLE INVESTMENT
Our ESG policy is fully implemented in our fund’s investment process with the most relevant pillars for private equity investments being exclusion, ESG integration and Active ownership.
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1. Exclusion
The Private Markets team screens our portfolio continuously with respect to ESG issues. As we hold a fairly concentrated portfolio of non-listed (private) companies and partnerships, this screening process cannot be conducted automatically via the MSCI ESG database as with some other funds. This analysis is therefore qualitative in nature and based on our in-depth knowledge of the partners and companies, and is enabled partly thanks to our detailed upfront due diligence process and ongoing monitoring that incorporates ESG issues.
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Controversial companies, such as arms manufacturers, are completely excluded. We simply do not invest in such companies.
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2. ESG integration
The Private Markets team conducts in-depth research - or due diligence - before including a new investment in the Private Markets fund. ESG factors and socially-responsible business practices are a standard part of this due diligence process. ESG factors are awarded a score in the due diligence report on each planned investment and any investments that do not score highly enough are not included in the portfolio;
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Once we have completed the due diligence process and made the investment, we conduct continuous monitoring and assess and analyse trends relating to ESG in detail. These issues are discussed regularly in the Private Markets team and with Kempen’s ESG team.
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3. Active ownershipÂ
Any important issues raise during our monitoring are placed on the agenda and discussed with our investment partners during on-site visits. Here we focus strongly on what the partner and company are actually doing, and we encourage our partners and the underlying companies to report publicly on ESG issues and share the results.
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One tangible example of ESG implementation within Private Markets is our activity around land and forestry investments.
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Global deforestation is thought to make a similar contribution to global carbon emissions to that generated by the use of cars and lorries. Thus Kempen only selects specialist forestry partners that hold sustainability certification for all their forests. Over 400 million hectares of forest worldwide is certified by FSC, PEFC (including each of their allied labels, such as SFI, AFS, Cerflor and others) or both. Certification is currently mainly applied in developed countries and we strongly encourage our partners to gain FSC certification in less developed countries.
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Risks
Risks
For more information about the mid and long term risks associated with the investments:
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ESG Report
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents of the Fund are 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.
The Shareholder is subject to an initial lock-up period of 3 years for each investment.
In Switzerland, the Statutes, the Prospectus, the PRIIP-KIDs, the Annual Report and, if applicable, the Semi-Annual Report and/or any such documents, which are required for the approval in compliance with the applicable foreign law, may be obtained free of charge from the Swiss Representative and Paying Agent, RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. In respect of the units distributed in and from Switzerland, the place of performance and jurisdiction is the registered office of the Representative.