The new private equity fund of Kempen Capital Management (Kempen), the Kempen European Private Equity Fund, is now for sale in the United Kingdom. The fund, which was launched in the Netherlands in January 2019, has raised over EUR76 million in the first closing.
The Kempen European Private Equity Fund is a closed-end investment fund with a minimum term of ten years. The fund focuses on small buy-outs across Europe. The goal is to build up a well-diversified investment portfolio over a period of between three to five years, by diversifying over various European countries and sectors. The main reason for this approach is to ensure sound risk diversification. The Kempen European Private Equity Fund is available for subscriptions in the Netherlands and the United Kingdom. The Kempen European Private Equity Fund raised over EUR76 million in the first closing on 14 February 2019 and is currently open for additional subscriptions.
Sven Smeets, Cohead of Private Markets at Kempen, says: ‘It is a hybrid investment fund that combines indirect investments in private equity funds and direct co-investments. Co-investments are private equity investments made directly in a company, alongside a (private equity) partner. The fees involved in direct co-investments are lower than in traditional investments in private equity funds. This is partly the reason why, in our view, the expected returns are higher. In the small and lower mid-market of European buy-outs, which is where the smallest funds of the European private equity market are found, there are fewer competitors with a lot of capital than in large-scale buy-outs, while there are many high-quality opportunities. We expect this to offer sound opportunities for return. This new private equity fund will build on the small-cap expertise Kempen is known for.’
Marvin de Jong, Director of Private Markets at Kempen, says: ‘Traditionally, investing in private equity via co-investments was the exclusive domain of large institutional investors, such as pension funds. The Kempen European Private Equity Fund makes this asset category more accessible to high net worth individuals and family offices, who are professional investors.’
