Munich Private Equity Partners starts fundraising for fourth mid-cap buyout programme

Submitted 01/09/2020 - 3:03pm

Munich Private Equity Partners (MPEP) has started fundraising for its fourth private equity program, MPEP IV, which offers institutional investors the opportunity to invest in two pre-built private equity fund portfolios. 

Investors receive high visibility on the manager quality and expected portfolio construction, consequently the blind pool risk typically associated with such investments is already substantially reduced. With two separate vehicles targeting fund investments in Europe and North America, investors can flexibly structure their allocation according to their regional preferences at the time of the investment.

To date, ten fund investments have already been completed all of which are at the beginning of their investment periods. In addition, MPEP has a strong pipeline with several fund investments already in advanced stages of due diligence.

MPEP successfully closed its predecessor program MPEP III at EUR162 million with renowned international investors, well above its original target of EUR100 million.

“With our fourth investment program, we continue our successful strategy and focus on the best and highly sought-after European and North American mid-cap buyout fund managers," says David Schäfer, Managing Director of MPEP. “We exclusively work with established management teams, who have proven track records across several fund generations and exhibit strong strategic and operational expertise." 

The track record of MPEP`s previous programs shows the ability to provide access to high quality and outperforming fund managers. As of 30 June, 109 exited portfolio companies in MPEP`s fund programs have generated an average gross multiple of 3.1x on invested capital. Christopher Bär, Managing Director at Munich Private Equity Partners, sees the MPEP IV program on a positive trajectory: “The first ten fund investments of our new program have already been made and are at the beginning of their investment phase. For these funds the current situation resulting from the corona pandemic could present a favourable opportunity to acquire companies at relatively lower entry prices and benefit from an economic recovery post Covid-19.”

MPEP launches a new private equity program approximately every 18 months. Benefiting from the relationship with its anchor investor, the mid-cap buyout specialist is able to build up substantial parts of the fund portfolios before it begins active fundraising with institutional investors. Munich Private Equity Partners is targeting a total size of EUR250 million for the two current vehicles of MPEP IV and expects to commit to 10 to 15 private equity funds in each vehicle. 

“We are certainly not striving to create a private equity index. Our goal is to provide investors access to a focused, high quality portfolio with adequate diversification, which can capture the outperformance potential of the best managers,” says Christopher Bär.

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