News

• This new fund of funds by March Private Equity offers the same four key attributes that differentiated its predecessors, March PE Global I and II: shareholder support, exclusivity, complete alignment of interests and strategic conviction.
• The portfolio will be invested internationally in its entirety, predominantly in the US and Europe, and will invest in funds specialising in sectors such as technology, health, services and the energy transition.
• March PE Global I and II raised more than €610 million and currently have 27 underlying funds, which invest in more than 250 companies. Both products were created with a view to generating an IRR of around 12-15% and doubling investors' contributions over a 10- to 12-year horizon.
• This initiative is the latest addition to the range of co-investment products offered by Banca March, which is a pioneer in alternative asset investment strategies and has 20 years' experience sharing its investment strategies with its customers.

The launch of March PE Global III coincides with the fifth anniversary of the incorporation of March Private Equity, which was created to further expand Banca March's extensive experience in private markets. Since 2008, the Group has managed and invested more than €3.1 billion, with an average multiplier in the divestments undertaken to date of more than 2.4 times the capital invested.

March PE Global III has the same model as its two predecessors, featuring four key hallmarks: shareholder support, exclusivity, complete alignment of interests and strategic conviction. Its fundraising target will stand at €350 million, of which the Banca March Group will commit 20%. Banca March will offer its investors financing for up to 50% of the capital calls, demonstrating its conviction in the strategy. The portfolio will be fully invested internationally, largely in the US and European markets, via investments in funds with a focus on the middle market specialising in sectors such as technology, health, services and the energy transition.

In addition to the co-investment format, the alignment of interests between investors and the Group is also evidenced in the fee structure. March PE Global III offers a different fee scheme which is based on payment when the capital is paid out – not when it is committed – throughout the portfolio construction period. This represents a very significant saving on fees during the initial years of the lifespan of the fund of funds.

Manuel Travesedo, CIO of March Private Equity, said: “Co-investment is an inextricable part of Banca March's identity. For more than 20 years, we have been inviting our customers to invest in the same products as the bank's shareholders, under the same conditions.  As part of this strategy, long-term investments like private equity are a magnificent way to complement more traditional investment options. Banca March's market leading capital adequacy allows us to launch these products, which we believe offer an ideal risk/return profile, to afford access to the greatest possible number of investors. March Private Equity Global II is a great opportunity to secure exposure to the underlying companies, otherwise accessible only to major investors, simply, quickly and prudently.”

Banca March: a co-investment pioneer

This 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, Banca March offers its customers the chance to invest in assets they would otherwise be unable to access.

Since 2008, the Banca March Group has committed more than €3.30bn in illiquid assets, with a return multiple of between 1.5x and 2.5x. Since then, more than 3,100 investors have co-invested alongside the bank in a range of opportunities.