Munich, December 11, 2024
Munich Private Equity Partners (MPEP), specialist for fund investments in the European and North American lower mid-market, announces the final closing of its fifth fund-of-funds program: MPEP V closed with capital commitments of €440 million, significantly exceeding its target of €300 million. The investor base includes institutional investors from both local and international markets, such as pension funds, banks, asset managers, family offices, and foundations.
With the fifth generation of its established fund-of-funds series, MPEP continues its proven strategy of providing institutional investors with access to best-in-class private equity funds in the lower mid-market buyout segment. In line with its “pure play” approach, MPEP invests exclusively in primary funds. The investment focus remains on the established investment regions Europe and North America. The fund structure with two separate vehicles allows investors to flexibly structure their regional allocation according to their individual preferences at the time of investment.
MPEP V aims to build a portfolio of 10 to 13 lower mid-market buyout funds per investment region (Europe and North America). The asset manager has already made commitments to 14 funds, most of which have already started their investment activities. All fund investments have been heavily oversubscribed.
“Particularly in challenging markets, demand gravitates toward managers with exceptional skills and proven track records in creating value within their portfolios. Even in today’s market environment, most of our partners have successfully closed their funds at the respective hard caps within just two to four months, often in a single first and final closing. We are proud to offer our investors focused access to this extraordinary investment quality also with our fifth fund-of-funds generation,” says David Schäfer, Managing Director at MPEP.
The performance metrics of MPEP’s fund-of-funds programs underscore the access to outstanding manager quality in the lower mid -market: the average gross MOIC across all 116 exits within the underlying fund portfolios is 3.7x (as of November 2024).
Lower Mid-Market with structural advantages
“The lower mid-market has several structural advantages that become particularly apparent in challenging times. Operational support and strategic guidance from experienced private equity managers has a much stronger impact on returns. In addition, there is a wider range of exit channels, which benefits investors during periods of high volatility in public markets, allowing for more consistent distributions. We also observe this in our own fund-of-funds portfolios,” explains Hans-Christian Moritz, Managing Director at MPEP.
Contrary to the general market trend, the number of company exits within the underlying fund portfolios of MPEP’s four previous fund-of-funds generations has remained relatively stable over the past two years, at levels similar to the peak years of 2021 and 2022.
“These structural advantages have recently brought the lower mid-market into greater focus for institutional investors, leading to increased demand. Additionally, our ‘Pure Play’ approach has proven highly compelling. We have only one product in a single asset class, which ensures maximum focus and alignment of interest with our investors,” added Christopher Bär, Managing Director at MPEP.
Since its inception in 2011, MPEP has successfully invested in more than 100 buyout funds in Europe and North America, 95% of which were heavily oversubscribed. Key criteria for fund selection include above-average performance in prior funds, differentiated strategies with a focus on the creation of sustainable competitive advantages, and substantial investment by the fund managers to ensure alignment with investors.
About Munich Private Equity Partners:
Munich Private Equity Partners (MPEP) is one of Europe’s leading fund-of-funds specialist for institutional investors, focusing on buyout funds in the European and North American lower mid-market. Since its establishment in 2011, MPEP has made over 100 buyout fund investments in Europe and North America, 95% of which were heavily oversubscribed.
