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.
There is a growing demand from individual investors to be able to allocate part of their assets to private equity. But how can an individual investor get access to the better funds, which offer sufficient diversification? MIP selects the best funds and offers various options to meet this need.
At the end of May 2021, the first fund closed, by which point more than 100 Dutch investors (mainly entrepreneurs and families) had between them committed approximately EUR 100 million in capital. The majority of the capital thus committed has since been allocated to several leading private equity firms such as Waterland, Bencis, and AlpInvest.
Fund II, which will once again make diversified investments in leading European private equity funds, will be launched in the near future. Investing in several funds, with a view to ensuring sufficient diversification, creates a spread and thus the enhances the prospects of a stable return. You can start investing with as little as EUR 250,000. Are you interested in getting more background information on the second fund?
For individual clients with very substantial assets, we offer tailor-made investments in private equity funds. We would be happy to tell you more about this in a face-to-face meeting.
The strategy of Fund II is focused on the middle segment of the European private equity market—companies with an enterprise value of between EUR 50 and 500 million. Relatively speaking, this market contains less competitive capital (“dry powder”) than the so-called “large buy-out” market, where the largest private equity firms are active. Moreover, in the middle segment there is a much larger pool of companies available, and valuations are, on average, much lower. Therefore, this segment is generally expected to offer the most opportunities for good returns down the road.
Diversification is created by selecting multiple private equity funds that are active in different countries and sectors, and that also stand out through the ways in which they create value, for example through acquisitions, organic growth, or restructurings. Despite the preselection and the diversification, the risks from investing in private equity remains high, and merchantability is limited or very limited. Historical returns are no guarantee of future returns, and substantial losses are possible.
The process of selecting funds follows four steps:
MIP’s and Marktlink’s unique network gives access to the strongest funds that come to the market. An active selection process then takes place after extensive research into the private equity firms that are launching a new fund. In this research phase, MIP analyzes a large number of factors. We would be happy to tell you more about this in a face-to-face meeting.