Kempen to introduce second European private equity fund
The Kempen European Private Equity Fund II is a closed-end investment fund with a term of approximately 10 years. This is Kempen’s second private equity fund after having successfully launched the first Kempen European Private Equity Fund early in 2019. It resembles its precursor in that it is a hybrid investment fund that combines indirect investments in private equity funds and co-investments. Approximately half of the target portfolio consists of direct co-investments. Kempen has opted in particular for this combination because it ensures diversification of risk and shortening of the J curve.
Sven Smeets, Managing Director of Private Markets at Kempen, explained: ‘The Kempen European Private Equity Fund II builds on from where the first fund left off. The new fund shares the same DNA and the same investment philosophy. We are looking at investment opportunities in five regions: the Benelux countries, the United Kingdom, France, Germany, and Scandinavia. In our experience, small to medium-sized companies offer a lot of opportunities for further growth through professionalization of management, digitalization, operational efficiency, and expansion with new products at home and possibly abroad.
‘The small and lower mid-market in Europe presents lesser competition for buyouts, as there are considerably fewer competitors with a significant capital to deploy than in large-scale buy-outs. In our opinion there is also ample opportunity to invest, as European economies are heavily populated with high-quality small and mid-cap enterprises. We expect this to offer interesting opportunities for returns. In addition, the relatively attractive entry valuations within this segment plays a significant role in this respect.
‘Investing in private equity was traditionally the exclusive domain of large institutional investors, such as pension funds. The Kempen European Private Equity Fund II makes this asset class more accessible to a wider range of investors, including high net worth individuals and family offices.’
The Kempen European Private Equity Fund II is offered to investors in the Netherlands, Belgium and Switzerland.
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About the Kempen European Private Equity Fund
The Kempen European Private Equity Fund II was established in 2021 and is a closed-end investment fund with a minimum duration of ten years. The fund focuses on the small and lower mid-sized segment of the European buy-out private equity market in five regions: the Benelux, the German-speaking countries, France, the United Kingdom and Scandinavia. The aim is to construct a broad investment portfolio over a period of three to five years by diversifying across the listed regions and a range of sectors. The reason for this is risk diversification. The Kempen European Private Equity Fund II is offered to investors in the Netherlands, Belgium and Switzerland.
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 Subfonds is registered for offering in a limited number of countries. The countries where the subfund 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 31 December 2020, Kempen Capital Management had a total of €86.2 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.
For more information, please visit: kempen.com