Kempen Capital Management (Kempen) is to launch the Kempen European Private Equity Fund II, which will focus on small and medium-sized private enterprises in Northern and Western Europe with an enterprise value of up to EUR100 million.
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 predecessor 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, says: “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 professionalisation of management, digitalisation, 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.
