Munich Private Equity Partners (MPEP) has started fundraising for its third annual fund of funds program for institutional investors.
In MPEP Fund III, the private equity specialist will continue investing in mid-market buyout funds in Europe and North America.
“With our annual programs, we have a clear focus on established companies in the lower-mid and mid-market. In this segment of the market we see the greatest potential for private equity managers to generate significant value with the portfolio companies applying their industry know-how and operational expertise,” says Christopher Bär, Managing Director of MPEP. “The quality of the manager is paramount to successfully drive value creation within the companies. We therefore exclusively work with established management teams, who have proven track records in their target markets and sectors across several fund generations.”
MPEP Fund III has already raised circa EUR50 million in capital commitments from investors. With seven fund investments to date, MPEP Fund III is almost fully allocated, significantly reducing the blind pool risk. The vast majority of managers in MPEP’s third annual program were heavily oversubscribed due to their quality and strong historical performance. As a result, only a few new investors have ultimately gained access to the managers’ latest fund generation.
The underlying funds MPEP has committed to are already invested in numerous companies. As a result of positive developments in the portfolio, MPEP Fund III has already seen a value appreciation early in its life. Thus, investors have the opportunity to invest at cost, in an established and growing portfolio that has already experienced a value uplift. MPEP Fund III is expected to invest in more than ten target funds with different vintage years and across more than 120 portfolio companies. Institutional investors can still participate in the MPEP Fund III investment program over the coming months.
