Banca March reinforces private equity co-investment range with new fund of funds March PE Global II following success of predecessor
28 September 2022 Category: Products
- This new fund of funds by March Private Equity offers the same four key attributes that characterised its predecessor, March PE Global I, launched in 2020: shareholder support, exclusivity, complete alignment of interests and strategic conviction.
- The fund will invest globally, primarily in the US and Europe, across a range of industries – largely mega-trends and defensive, general and niche sectors – with a focus on sustainable strategies.
- This initiative is the latest addition to the range of co-investment products offered by Banca March, which is a pioneer in these alternative asset investment strategies and has 20 years' experience sharing its investment strategies with its customers.
- March PE Global I has more than 600 investors and a total volume of €250 million. At 30 June, March PE Global I has a valuation multiple of 1.19x.
Banca March, through its private equity unit March Private Equity, has launched March PE Global II, the second iteration of this fund of funds which will also be investing in global private equity on the back of the successful initial programme.
March PE Global I, launched in 2020, raised its target amount of €250 million in just four months, attracting more than 600 investors. The fund is currently committed at 91% and is expected to be 100% committed by the end of 2022. At 30 June, March PE Global I has a valuation multiple of 1.19x.
Like its predecessor, March PE Global II boasts an unparalleled model underpinned by four key characteristics: shareholder support, exclusivity, complete alignment of interests and strategic conviction. Its fundraising target will be between €250 and €300 million, of which the Banca March Group will commit 20%. Banca March will also offer its investors financing for up to 50% of the capital calls, demonstrating its conviction in the strategy. The fund will invest globally, primarily in the US and Europe, across a range of industries – largely mega-trends and defensive, general and niche sectors – with a focus on sustainable strategies.
Gabriel Echarri, Managing Director of March Private Equity, said: “Co-investment is an inextricable part of Banca March's identity and given the current backdrop of uncertainty, long-term investments such as private equity are a magnificent way to complement more traditional investment options. Banca March's position as Spain's most solvent bank means is able to launch these products, which are rooted in the four key attributes that define March Private Equity's funds of funds: shareholder support, exclusivity, complete alignment of interests and strategic conviction. We remain committed to democratising private equity investment and we believe the fund of funds strategy offers the perfect solution in terms of risk and return to allow as many investors to benefit from this type of product as possible. March Private Equity Global II is a great opportunity to secure exposure to the underlying investments, which were previously only accessible to major investors, simply, quickly and prudently”.
Banca March: a co-investment pioneer
The initiative is the latest addition to the Group's range of co-investment proposals, a unique, inimitable series of solutions which allow Banca March's customers to invest in the same products as the bank. Banca March is a pioneer in alternative asset investment strategies and has over 20 years' experience sharing its investment strategies with its customers.
Banca March's co-investment initiatives cover a variety of illiquid assets, including venture capital, private equity, private debt, real estate and infrastructure, selected by Banca March to offer alternative investment opportunities in growth sectors, making them excellent complementary strategies with minimal exposure to volatility or economic uncertainty. Through these strategies, the bank offers its customers the chance to invest in assets they would otherwise be unable to access.
Since 2008, Banca March has committed more than €2.65bn in illiquid assets with a return multiple of between 1.5x and 2.5x. During this time, 1,750 customers have invested alongside the bank in various projects, and 32% of these customers have gone on to invest again in subsequent initiatives.
.