Kempen European PE fund holds €158m third close

Francesca Veronesi
30 September 2019

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Asset manager Kempen Capital Management has held a third close on €158m for its Kempen European Private Equity vehicle.

Kempen charges a management fee of 1.25% and no carry, Unquote has learned. The firm adopted these competitive terms partially because some of its pension fund LPs do not like to pay carried interest.

The fund has a target size of approximately €150-200m. Launched in early 2019, it held a first close on €76m in February and a second close on €120m in June.

Kempen said it will keep the fund open for a limited number of new subscriptions before announcing a final close.

Investors
The private equity fund is exclusively available to clients of private bank Van Lanschot and asset manager Kempen. Investors consist predominantly of former entrepreneurs and experienced private equity investors based in the Netherlands, Belgium, and Switzerland. The initial subscription and minimum holding amount is €250,000. Van Lanschot and Kempen's staff have also invested in the fund with their own private capital.

A statement by the GP disclosed that investors also provide help with deal sourcing thanks to their extended network.

The GP is aiming for 12-15% net IRR on the invested capital for investors in the fund.

Investments
The fund aims to build a portfolio of approximately 10 participations, of which around five should be co-investments. Family-owned businesses are likely to be targeted.

Kempen European Private Equity Fund invests mostly in companies with enterprise values of €20-40m, providing equity tickets of €3-15m.

The GP expects to deploy the fund equally across five regions: Benelux, DACH, France, the UK and the Nordic countries.

The vast majority of investments should be buyouts, though the GP could also complete some expansion deals.

On an individual investment level, Kempen targets a 20% IRR and 2.5-3x money multiple.

The fund has already begun investing: Kempen co-invested in Wilvo Group, a Netherlands-based metal parts and assemblies manufacturer, alongside German GP Steadfast Capital in July.

People
Kempen Capital Management – Sven Smeets (co-head of private markets); Marvin de Jong (director of private markets).