Kempen Private Markets Fund Class D

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.

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.

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.

€ 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.

Ongoing charges

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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 %
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.

Share class details

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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, 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
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 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.
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.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies that we invest in. Our full voting records are available here.

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.