Munich, December 15, 2022

MPEP closes fourth mid-cap buyout program well above target

  • Final closing of MPEP IV at around EUR 392 million – surpassing the original target of EUR 250 million.
  • Clear focus on buyout funds in the European and North American lower-mid and mid-market.
  • Previous MPEP programs with an average gross multiple of 3,8x across 97 exits to date.

Munich Private Equity Partners (MPEP), specialist for fund investments in the European and North American lower mid- and mid-cap buyout segment, announces the final closing of its fourth fund-of-funds program: MPEP IV closed with capital commitments of around EUR 392 million, well above its original target of EUR 250 million due to strong support from its existing and new investors. The final fund size is significantly above the one of its predecessor program MPEP III, which also held its final closing above its target at EUR 162 million.

With its fourth program, MPEP was able to further expand its existing base of institutional clients including pension funds, insurers, asset managers, foundations and family offices. Aside from its existing investors from countries such as Germany, Spain, UK and Italy, MPEP also successfully attracted several new investors i.e. from Scandinavia and the Netherlands. Just like its predecessors, MPEP's fourth fund-of-funds program remains focused on high-quality private equity funds in the North American and European lower mid- and mid-cap buyout segment. The fund structure with two separate vehicles allowed investors to flexibly structure their regional allocation according to their individual preferences at the time of investment.

"With our fund-of-funds programs, we focus on the lower mid- and mid-market in the established investment regions North America and Europe, where we continue to see the most attractive risk-return potential. This is where we have built our expertise and our network and where we can offer access to the most successful and sought-after fund managers, which are generally heavily oversubscribed and access restricted", says Christopher Bär, Managing Director at MPEP. "In volatile market environments, the quality of managers is more than ever paramount for investment success. We therefore invest in funds with outstanding track records whose teams have proven their comprehensive operational and strategic expertise to support portfolio companies on professionalization and their next phase of growth over several fund generations and across different market cycles."

This strategy has proven successful in the past, as the track record of MPEP’s previous programs shows: The average gross multiple across all 97 exits of the four fund-of-funds generations to date is 3.8x.

David Schäfer, also Managing Director at MPEP, continues to see strong potential in the mid-cap buyout segment: "Our experience shows that Lower Mid- and MidMarket companies tend to be more flexible than large corporations and often find it easier to seize opportunities in volatile times, especially when supported by experienced private equity managers. The current mix of inflationary pressure, recessionary concerns and increased volatility even presents exciting opportunities for Mid-Market managers through attractive entry valuations, multiple value creation levers within portfolio companies and more flexibility in terms of exit opportunities compared to the large and mega-cap segment."

MPEP IV is targeting a focused portfolio of 15 to 20 Lower Mid- and Mid-Cap buyout funds per investment region. To date, the fund-of-funds has made commitments to 28 funds across Europe and North America. All funds that held their final closing to date were heavily oversubscribed.

About Munich Private Equity Partners
Munich Private Equity Partners (MPEP) is one of Europe’s leading private equity specialists for fund investments in the lower mid-market buyout segment. MPEP oversees over EUR 2.4 billion assets and more than 200 fund investments. MPEP’s product and service offering for institutional investors includes focused private equity programs, customized managed accounts as well as advisory and services encompassing the entire private equity lifecycle.