Van Lanschot Kempen Unveils Private Equity Secondaries Fund - InforCapital

Van Lanschot Kempen Investment Management has announced the launch of the Private Equity Secondaries Evergreen Solution, a new fund designed to acquire existing private equity stakes in the secondary market. This initiative aims to provide investors with access to mature companies that still possess significant growth potential.

Strategic Focus on Secondaries

The fund targets the secondary market, where existing private equity interests are purchased from other investors. This approach allows new investors to engage with companies that have already undergone development phases, reducing the typical risks associated with early-stage investments. By focusing on these opportunities, the fund seeks to offer a more immediate deployment of capital and a shorter investment cycle compared to traditional primary market investments.

Evergreen Structure and Investor Flexibility

Structured as an evergreen fund, the Private Equity Secondaries Evergreen Solution reinvests returns from underlying investments, promoting continuous growth. The fund's cooperative structure is particularly advantageous for Dutch investors due to the participation exemption benefits. Investors can enter the fund on a quarterly basis and, following a three-year lock-up period, have the option to exit, subject to available liquidity.

Diversified Investment Approach

The fund combines investments in private equity funds with co-investments, aiming to build a diversified portfolio across various sectors and regions. This strategy not only enhances diversification but also helps in reducing costs and accelerating capital deployment. The inclusion of co-investments allows for more direct involvement in selected companies, potentially leading to improved returns.

Expert Management and Access

Managed by a team of seasoned specialists, the fund leverages Van Lanschot Kempen's extensive network to access investment opportunities typically unavailable to private investors. The selected specialists contribute to medium-sized companies by implementing operational improvements, strategic enhancements, and fostering international expansion. This hands-on approach is designed to add substantial value to the portfolio companies.

Meeting Investor Demand

Wendy Winkelhuijzen, a member of Van Lanschot Kempen's Management Board responsible for Private Banking Netherlands, stated, "We continuously expand our private market solutions to meet the strong interest from our clients. Investing in secondaries offers our experienced investors, such as high-net-worth individuals and entrepreneurs with a long-term focus, further diversification in their private equity portfolio."

The introduction of the Private Equity Secondaries Evergreen Solution underscores Van Lanschot Kempen's commitment to providing innovative investment opportunities that align with the evolving needs of its clientele.