Please note: Any investments you make through MIP fall outside the supervisory remit of the Netherlands Authority for the Financial Markets. No permit or prospectus is required for this activity. Marktlink Investment Partners

FAQ

In a fund of funds, capital from investors is pooled together. MIP acts as manager of the fund, and invests the capital in a selection of private equity funds that have proven to be successful.

Because the fund has been set up as a cooperative, it is possible for investors who participate from a Dutch or Belgian company to make use of the participation exemption, regardless of the percentage of their participation in the fund./p>

No. As soon as your enrollment as a new investor in the fund has been completed, an initial capital payment (“capital call”) of EUR 100,000 is requested. Only when this amount is fully invested will the majority of the remaining commitment expected be called up over a number of years.

The J-curve shows the evolution of cash flows for investors over the life of the fund. In the first few years, cash flows are typically negative due to capital expenditures and the payment of fund costs. Over time, a turning point is expected whereby positive cash flows come in from the disbursements of private equity funds to investors as a result of the realisation of sales proceeds from investments. The cash-flow curve is therefore expected to change from negative to positive, in the form of the letter “J”.

MIP pursues an active diversification policy across different axes such as market sectors, investment strategies, geographies, and “vintage”, to spread investment risk in various ways. We would be happy to discuss with you how we select the best-performing funds from this range.

We would be pleased to explain in a one-on-one conversation how registration in the fund works.

Funds launched during or immediately after crisis years often show a strong performance. The current market conditions offer potential for attractive transactions under good conditions and relatively low valuations (depending on the sector). That said, historical returns offer no guarantee of future returns.

The commitment made by an investor means the amount of capital they are committing to the fund. That amount is called up in phases. The minimum commitment to co-invest in the fund is EUR 250,000.

We consider this to be an important theme, and every private equity fund we invest in is reviewed according to these criteria. Naturally, we do not invest in private equity funds that themselves invest in companies whose activities are harmful to people, animals, or the environment.

A capital call is the calling up of capital by the fund manager from the fund’s constituency of investors so that a private equity fund can make an investment or so that MIP’s and the underlying funds’ expenses can be met. Distributions are disbursements to investors, for example upon the sale of an investment by a private equity fund in which MIP has invested.

Private equity funds generally employ one or more acquisition strategies, which  generally fall into one of three categories:

  • Buy-out: This generally involves investing in mature, profitable companies, and buying out existing shareholders. These are family or other businesses, for instance, that are dealing with a succession issue.
  • Growth: This involves investing in companies that need capital to achieve the next phase of growth. Private Equity funds bring in capital, a large network, and market knowledge to help companies grow faster.
  • Turnaround: This involves investing in companies that are experiencing occasional difficulties but that are fundamentally healthy. Often capital/liquidity, operational support, and a restructuring plan will help them get back on their feet.