GUB analysis: “A+” for MPE Direct Return 6

The fund plans to invest indirectly in private equity target funds, which in turn invest in a large number of companies. According to the information available, the available capital is to be invested entirely in the current fund of funds program MPEP V of the RWB sister company Munich Private Equity Partners (MPEP), which is otherwise only open to professional investors with a minimum investment of one million euros. Private investors also invest in parallel with institutional investors.

The development phase, in which investments will take place, is planned until the end of 2028. The payout phase then begins and, from 2036, the liquidation phase begins, in which no more investments are made, but rather the portfolio is gradually liquidated and the returns are distributed. Reinvestments are generally not planned.

The minimum investment for investors is 5,000 euros plus five percent premium. The basic term of the fund ends on December 31, 2035. An extension of up to four years is possible under certain conditions; If applicable, plus liquidation phase.

Strengths/Opportunities

GUB sees as “strengths/opportunities” that MPE/RWB have extensive experience with private equity funds of funds and have specialized in this segment for 25 years. You have demonstrated the ability to implement fund of fund concepts and therefore have access to target funds

GUB also rated positively that the MPEP fund planned for participation is already at an advanced stage of investment, the initial costs are moderate and there is a broad international risk mix. In addition, at the fund of funds level, only equity is provided, the payout phase should begin comparatively quickly and there are general opportunities through indirect investments in active companies and their success.

Weaknesses/Risks

As a “weakness/risk,” GUB noted that it is still partly a blind pool, although MPEP V has already linked 13 target funds. The liquidation phase of the predecessor fund is partly extended and the fund of funds concept creates an additional cost level. In addition, the regulation on trustee voting rights may have disadvantages; the (maximum) running costs are in the upper market range and the individual target investments may be associated with entrepreneurial risks.

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