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Kempen to introduce Diversified Distressed Debt Pool

04 January 2021
Distressed Debt involves purchasing debt securities of companies that are in financial or operational distress, have defaulted, or are in bankruptcy. These debt securities are trading at a distressed level; well below par value. Distressed Debt funds can form a safety net for companies with too much debt by playing an active role in the restructuring of these companies and subsequently providing them with new capital.

The Diversified Distressed Debt Pool is built up of Distressed Debt funds that are carefully selected by Kempen, a firm that has invested in this strategy since as far back as 2005. The pool gives investors access to the Distressed Debt market through five dedicated and highly experienced investment specialists to provide good risk diversification. In addition, the pool has an open-end structure that allows investors to enter monthly and exit quarterly (quarterly redemptions up to 25% of fund NAV).

Remko van der Erf, Co-head of Alternative Strategies at Kempen, explained: ‘As Distressed Debt is a cyclical phenomenon, funds that specialise in Distressed Debt often perform very well after a crisis. These funds form a safety net for companies with too much debt. The best way to invest in Distressed Debt is through experienced specialists. We team these specialists up to form a pool to ensure that investing in Distressed Debt becomes accessible to a large group of investors. Our clients benefit from the fact that Kempen takes care of the selection, due diligence and monitoring, and also supervises the ESG policies of the funds. In addition, the pool offers access to best-in-class specialists as well as active portfolio management and comparatively good liquidity.’

Michiel Meeuwissen, Co-head of Alternative Strategies at Kempen, added: ‘In the current market environment, in which investors are looking for new ways to generate returns, we want to offer our clients new investment propositions to help them achieve their objectives. Our strength lies in this specialisation and this is where Kempen sees it’s added value in meeting the needs of clients, now and in the future. We are therefore seeing great interest in the market for the Distressed Debt pool.’
 

Disclaimer
Diversified Distressed Debt Pool (the Sub-Fund) is a sub-fund of Kempen Alternative Investment Fund SICAV (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 Netherlands Authority for the Financial Markets. 

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.

About Kempen Capital Management
Kempen Capital Management is a specialist asset manager with a focused approach and a clear investment philosophy. We believe in long-term stewardship for our clients and other stakeholders. Kempen provides sustainable returns, fiduciary management services, manager selection, portfolio construction and monitoring, alongside a number of actively-managed investment strategies. As of 30 June 2020, Kempen Capital Management had a total of €79.1 billion in client assets under management.
 
Kempen Capital Management, part of Van Lanschot Kempen Wealth Management NV, is a specialist and independent wealth manager. Kempen Capital Management NV is licensed as a manager of various UCITS and AIFs and authorised to provide investment services and as such is subject to supervision by the Netherlands Authority for the Financial Markets. Kempen Capital Management (UK) Ltd is licensed as a manager and subject to supervision by the Financial Conduct Authority.

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