Kempen Private Markets Fund Class FC

Profile

The Kempen Private Markets Fund (the Fund) aims at achieving capital growth through a diversified exposure to private strategies, whereby investments are made worldwide to offer investors an attractive risk/return potential.

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

Sven Smeets, Richard Jacobs, Edzard Potgieser, Bram Bikker, Marvin de Jong
More information can be found on the documents page of this fund
Kempen Private Markets 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 Shareholder is subject to an initial lock-up period of 3 years for each investment.

In Switzerland, the Statutes, the Prospectus, the KIIDs, 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.

Portfolio developments per 2019-03-31

Portfolio activities and outlook
We have added two new Partnerships to the portfolio. First, we invested in the RMS Evergreen US Forestland Fund. This fund focuses on sustainable forestry in the southeast of the United States, the largest commercial forestry region worldwide. RMS is fully focused on investing in and managing forests, and has an extensive experience in this market. The level of timber prices is still relatively low historically and we expect a positive growth in demand for timber in this region, in particular due to the arrival of a large number of new, modern sawmills.
The second new Partnership that we have included is GSA Coral. GSA is one of the global market leaders in the real estate niche segment of student housing. GSA is active in Europe and Asia and focuses on growing markets as well as more mature markets for student-housing investments.

In the first quarter we also further expanded our existing commitments to two existing Partnerships: AMP Capital Global Infrastructure Fund II and WestBridge Capital SME Fund II. We expect to make additional commitments to a number of existing Partnerships in the next quarter.

The return for the first quarter amounted to 1.1%, mainly due to investments in Infrastructure (J.P. Morgan and AMP), Agriculture (Craigmore) and Real Estate (Clarion Gables). These funds reported a positive income and/or a positive revaluation of the net asset value of the underlying assets in their portfolios. The currency positions are not hedged in the fund and have had a positive effect in this quarter. For most Private Equity Partnerships, it’s still too early for upgrades as underlying portfolio companies are generally held at cost in the first year.

In the overview below, we show the portfolio at the end of March 2019 on the basis of the committed capital. With 10 Partnerships and 2 co-investments, we have now built up a well-diversified portfolio. We will probably increase the allocation to Land and Real Estate a little more in the coming quarter. In addition, we also look at various new investment opportunities within Private Equity.

Important portfolio developments
-Forbion (Forbion Capital Fund IV) made one new investment in the past quarter, which means that it invests in four companies now. The new investment, Dyne Therapeutics, is developing drugs for rare muscle diseases.
-Ciclad (Ciclad VI) has made a number of add-on acquisitions for their current investments. The portfolio company Tofane, for example, took over iBasis from KPN with which it further expands its global proposition for communication solutions. Ciclad has now completed seven investments and for the coming quarter two new investments are planned with which around 45% of the capital will be called up.
-Steadfast (Steadfast Capital Fund IV) has not completed any new investments in the first quarter. It is currently working on various investment opportunities for which it has obtained exclusivity. Two investments are expected to be completed in the coming quarter.
-Westbridge (WestBridge SME Fund II) has completed two new investments: APEM Ltd, an independent environmental consultancy firm, and Wilcomatic Wash Systems, market leader in the design and manufacturing of machines for car washes.
-AJM Healthcare (Direct Co-Investment) won three new long-term contracts that positively contribute to sales and profit growth.
-J.P. Morgan (J.P. Morgan Global Infrastructure Investment Fund) at the end of the first quarter called up the capital of our top-up commitment issued in September 2018. The Private Markets Fund is therefore fully invested as from the following quarter.
-AMP (AMP Global Infrastructure Fund II) completed an important acquisition by taking over a competitor from the portfolio company Regard Group.
-Project Bäckhammar (Direct Co-Investment) concluded a long-term energy purchase contract with Amazon Web Services for a period of 10 years. Amazon’s long-term goal is to generate 100% sustainable energy for its data centres.
-Craigmore (Craigmore Permanent Crop Partnership) announced two new investments: both a development of an apple orchard and an acquisition of a kiwi orchard. Craigmore has closed its fundraising since.
-RMS (RMS Evergreen US Forestland Fund) was added to the Private Markets Fund at the end of the first quarter. The underlying portfolio is positioned in the southeast of the US.
-Clarion Gables (Clarion Gables Multifamily Trust) was quite active in the last two quarters with the sales of four apartment complexes, the buyout of a JV partner and the realisation of an apartment complex in Dallas.
-GSA (GSA Coral) was added to the Private Markets Fund at the end of the first quarter. GSA announced new development projects in both Japan (Tokyo) and Spain (Valencia). Various existing development projects for the coming academic year in the United Kingdom, Spain, Ireland and Australia will be completed and rented out to students.
Kempen Private Markets 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 Shareholder is subject to an initial lock-up period of 3 years for each investment.

In Switzerland, the Statutes, the Prospectus, the KIIDs, 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

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Distributing
No
Kempen Private Markets 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 Shareholder is subject to an initial lock-up period of 3 years for each investment.

In Switzerland, the Statutes, the Prospectus, the KIIDs, 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.

€ 83 million committed capital

PER 31 MARCH 2019

 

 

 

 

Source: Kempen Capital Management, per 31 March 2019

 

 

 

Kempen Private Markets 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 Shareholder is subject to an initial lock-up period of 3 years for each investment.

In Switzerland, the Statutes, the Prospectus, the KIIDs, 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
0.55 %
Service fee i
0.17 %
Taxe d'abonnement i
0.01 %
Indirect costs i
1.51 %
Expected ongoing charges i
2.24 %
Management fee 0.55% until 5 years after fund launch, 0.80% thereafter.
Kempen Private Markets 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 Shareholder is subject to an initial lock-up period of 3 years for each investment.

In Switzerland, the Statutes, the Prospectus, the KIIDs, 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
FC
Investor type
Institutional & Private
Distributing
No
Investment category
Private Markets
Inception date
2018-05-02
Domicile
Luxembourg
May be offered to professional investors only in
Belgium, France, Germany, 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

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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
LU1789511141
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 Fund is only available for professional investors.
Kempen Private Markets 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 Shareholder is subject to an initial lock-up period of 3 years for each investment.

In Switzerland, the Statutes, the Prospectus, the KIIDs, 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 Private Markets 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 Shareholder is subject to an initial lock-up period of 3 years for each investment.

In Switzerland, the Statutes, the Prospectus, the KIIDs, 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 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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ESG Report
Private markets
Kempen Private Markets 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 Shareholder is subject to an initial lock-up period of 3 years for each investment.

In Switzerland, the Statutes, the Prospectus, the KIIDs, 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.