Kempen European Private Equity Fund - Class A

The Kempen European Private Equity Fund had a third closing on September 27, 2019. The fund's total commitments have reached a total of approximately € 158 million. The fourth and final fundraising round is currently ongoing. The final close will take place on Friday December 13 at 4 p.m. After that date it will no longer be possible to subscribe to the European Private Equity Fund.

Profile

The Kempen European Private Equity Fund (the Fund) aims to achieve capital growth through a diversified exposure to private equity investments. The Fund will invest in funds managed by private equity General Partners (“GPs”) and in direct deals in the form of Co-Investments together with private equity GPs. The Fund aims for a balanced portfolio distribution, with around half of the portfolio consisting of GP investments and the other half of direct deals in the form of co-investments.

The objective of the Fund is to build up a portfolio of approx. 10 (within a range of 5 to 15) participations in GPs and supplemented with various co-Investments. The funds managed by private equity GPs will be selected by the management team based on, including but not limited to investment strategy, pedigree and experience of the investment team, track record, responsible investment approach, quality of the organization and service providers, and (commercial) terms of investment. The main focus is on North-Western European small and lower mid-market buyout GPs.

The Fund is closed-end.

Management team

Sven Smeets, Richard Jacobs, Edzard Potgieser, Bram Bikker, Marvin de Jong
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 117.12 M
Share class size
EUR 0.00 M 2019-08-31
Number of shares
0 2019-08-31
Net Asset Value
EUR 981.23 2019-09-30
The total fund size is af of the first closing on 14 February 2019.
Kempen European Private Equity Fund (the Sub-Fund) is a sub-fund of Kempen Alternative Markets Fund SICAV-RAIF (the “Fund”), 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 Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the prospectus. This document of the Fund is available on the website of KCM (www.kempen.com/investmentfunds). 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 Fund is closed-end.

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 have assessed dozens of investment opportunities in recent months. For this we traveled to Paris, Munich, Oslo, Salzburg and London, among others. We have done due diligence on multiple direct deals and Partnerships. Although we again saw a good deal flow in the third quarter, we remain very critical during our due diligence phase. We are currently in the final phase of a new direct co-investment in France. The term "co-investment" stems from the fact that we always work with another experienced investor. All our co-investments are direct investments in a company. For the sake of clarity, we will refer to these types of investments as direct investments going forward.

 

At the same time, we are currently in a fairly advanced phase of due diligence to three other direct investments. It concerns a production and trade company in the German-speaking region, a manufacturing company in the Netherlands and a company active in primary care in Scandinavia. After an extensive process, we have also added a Partnership aimed at small French companies, including in the Lyon region. This partner is a very experienced French Private Equity company with 30 years of experience, a strong reputation and an excellent track record. We have been working with this partner for many years and we like the fact that they are deeply rooted in their home market.

Kempen European Private Equity Fund (the Sub-Fund) is a sub-fund of Kempen Alternative Markets Fund SICAV-RAIF (the “Fund”), 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 Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the prospectus. This document of the Fund is available on the website of KCM (www.kempen.com/investmentfunds). 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 Fund is closed-end.

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.

In the first period after a new investment has been made, the valuation is generally kept at cost price. Therefore, no unrealized performance results can be reported with regard to the first companies that are in the portfolio, as it simply is too early. However in the mean time, costs are incurred in the start-up phase. If the investment cash flows, costs and distributions are combined into net cash flows, this usually translates into a so-called J-curve, whereby the net cash flows in the first years are negative and only after several years as the underlying companies are valued upward and / or exited, the distributions and returns will become higher than the original capital calls, after which the real return potential becomes clear.

Dividends

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Distributing
No
Kempen European Private Equity Fund (the Sub-Fund) is a sub-fund of Kempen Alternative Markets Fund SICAV-RAIF (the “Fund”), 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 Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the prospectus. This document of the Fund is available on the website of KCM (www.kempen.com/investmentfunds). 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 Fund is closed-end.

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.

The fund's investment period started in February 2019. Since then, we have completed a total of 5 direct investments. In addition, we have added 3 Partnerships to the portfolio. With this, we have already built up a fairly diversified portfolio. Moreover, compared to peers, we have already been able to successfully put a considerable part of the assets entrusted to us to work. The focus is on the European small buyout segment. The portfolio will be built up over a period of several years to achieve the desired diversification over vintage years. All participants in the fund receive an extensive quarterly report. In this quarterly report we provide a detailed description of the investments, the most important activities during the first period in which the fund went live. In addition, we also consider the pipeline of potential investments.

Kempen European Private Equity Fund (the Sub-Fund) is a sub-fund of Kempen Alternative Markets Fund SICAV-RAIF (the “Fund”), 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 Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the prospectus. This document of the Fund is available on the website of KCM (www.kempen.com/investmentfunds). 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 Fund is closed-end.

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

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Management fee i
1.25 %
Service fee i
0.10 %
Taxe d'abonnement i
0.01 %
Indirect costs i
1.30 %
Expected ongoing charges i
2.66 %
Kempen European Private Equity Fund (the Sub-Fund) is a sub-fund of Kempen Alternative Markets Fund SICAV-RAIF (the “Fund”), 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 Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the prospectus. This document of the Fund is available on the website of KCM (www.kempen.com/investmentfunds). 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 Fund is closed-end.

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

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Share class
A i
Investor type
Institutional & Private
Distributing
No
Investment category
Private Markets
Inception date
2019-02-15
May be offered to professional investors only in
Belgium, Switzerland, The Netherlands, United Kingdom
UCITS status i
No
Status
Closed-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

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Minimum subscription
Initial subscription and minimal holding amount €250,000.
Listed
no
ISIN i
LU1901067568
Entry period purchase order
Please contact your Relationship Manager or Kempen Capital Management.
The Fund is only available for professional investors.
Kempen European Private Equity Fund (the Sub-Fund) is a sub-fund of Kempen Alternative Markets Fund SICAV-RAIF (the “Fund”), 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 Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the prospectus. This document of the Fund is available on the website of KCM (www.kempen.com/investmentfunds). 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 Fund is closed-end.

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 European Private Equity Fund (the Sub-Fund) is a sub-fund of Kempen Alternative Markets Fund SICAV-RAIF (the “Fund”), 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 Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the prospectus. This document of the Fund is available on the website of KCM (www.kempen.com/investmentfunds). 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 Fund is closed-end.

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:

  • 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 clients’ capital and using our influence through engagement and voting to improve corporate behaviour 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.

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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 ESG integration and Active ownership.

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1. Exclusion

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 Equity 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 high 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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The Private Markets team screens the investment portfolio continuously with respect to ESG issues. As we hold a fairly concentrated portfolio of non-listed (private equity) companies and partnerships, this screening process cannot of course be conducted automatically via the MSCI ESG database. 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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3. Active ownership Â

Any important issues raised 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 to share the results.

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As we mainly hold, with or without our investment partners, direct majority interests in the companies in which we invest, we are in a position to be more involved in the day-to-day management of our investments. We can therefore quickly and effectively place items such as ESG issues on the agendas of the companies’ management teams and share best practices. This also enables us to keep a close eye on the developments and steer directly towards achieving results.

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ESG Report
Kempen European Private Equity Fund (the Sub-Fund) is a sub-fund of Kempen Alternative Markets Fund SICAV-RAIF (the “Fund”), 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 Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the prospectus. This document of the Fund is available on the website of KCM (www.kempen.com/investmentfunds). 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 Fund is closed-end.

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.