Reachfund The Alternative

Our ReachFund:

  • Invest in the best Private Equity Funds
  • 9-14% expected return per annum over a 10-year period
  • Participation from Eur 100.000,-
  • No long-term commitments
  • Liquidity, Easy in & out on a quarterly basis
  • No Capital Calls
  • Committed capital is invested capital
  • No enddate, cashflows directly reinvested
  • ReachFund is an Investment Fund and not a Commitment Fund
  • AFM Registration
  • Being invested in Non listed companies as Action, Anticimex & BluEarth Renewables

What is Private Equity?

Private equity investors are long-term investors in medium-sized and large unlisted companies. Established, generally thriving, companies seek private equity whenever they want to grow quickly or when a company's management wants to take over the company or a business unit, where debt financing alone would be insufficient.

There are several other situations in which private equity may be useful. For example, when financing the growth of a company through internationalisation or acquisitions. A private equity investor may also be the solution when carving out a company or business unit in a so-called buyout. This may be the case when a business unit no longer fits in with the company's corporate strategy. In this event, the current management can take over part of the company. A private equity investor may also be a solution for a buy-in, when continuing a company with new shareholders; for bridge financing, prior to an IPO, for example; or when de-listing a company (public-to-private). Finally, a private equity investor may be an interesting partner for restructuring (turnaround), i.e. changing a company's focus or financing structure.

(Source NVP)

Why invest in Private Equity?

Diversification of your Investment Portfolio

According to the UBS Global Family Office Report 2023 allocate Family offices and the wealthiest families 19% of their porfolio to Private Equity. Of this 19% is over 50% invested in Funds/Fund of Funds like our fund.

New Reach - why foto 2

Large investors as PGGM & APG need Private Equity for diversification and as a driver for their returns. Due to regulations and the lagging returns of Fixed Income (bonds) and Equity (listed shares) is the current allocation just below 10% (Source Annual Report ABP/PFZW).

Stable & High returns

Benchmarks like Ishares, listed PE and other audited institutions show stable & high returns of 10 – 25% over the last 10 years (Source Bloomberg/Corporate websites).

Decrease in number of Listed Equity

Research from McKinsey Shows a drop-off in number of listed shares since the nineties. For instance a decrease of more then 25% from 2000-2020 in the USA (Source McKinsey).

Negative outlook Real Estate Market

Higher interest rates and building cost is a negative combination for Real Estate investments. Working from home and increase in online retail will result also in a decline in demand and rental income for commercial real estate. The increase of transfer taxes (The Netherlands around 10%) is an extra barrier to invest.

“Hugo de Jonge” impact in Dutch Real Estate Market

The “Hugo de Jonge” effect is very negative for the Dutch Real Estate Market. Rental income in the “vrije sector” will come down because of an amendment of the rental system (puntentelling) which has a destructive impact on the value. He also increased the transfer tax to 10%. Investors cannot invest/anticipate on an unpredictable government, which also resulted in a stop on investments by small investors and large institutions. Next to this are international institutions (Heimstaden) leaving and selling their assets in The Netherlands.

“Heimstande wil 12.000 Nederlandse woningen uitponden, geen goed nieuws voor woningmarkt”

Source:
BNR Nieuwsradio

“Heimstaden Bostad Sells Dutch Homes”

Source:
Bloomberg

“Netherlands to cap Rents of Thousands of Homes at $1,172”

Source:
Bloomberg

“Hugo de Jonge heeft ramp op woningmarkt aangericht”

Source:
Telegraaf

High Interest Rates

Leading macro analyst predict Interest Rate will not come off in the foreseeable future. Demographic issues in the EU, Shortage of Labour and current wars will have inflationary effect.

Support the Backbone of the Economy

Private Equity Funds invest in medium-size and large unlisted companies which are the backbone of the economy.

“US Federal Reserve holds interest rates at 22-year high”

Source:
Financial Times

“MKB en Private Equity aan elkaar verslingerd: ‘Imago van Sprinkhanen is weg”

Source:
Telegraaf

“Vermogen Private Equity in opmars als opkoper van MKB bedrijven”

Source:
Financieel Dagblad

“OECD says markets wrong on interest rate cuts”

Source:
Financial Times

New Reach Investments Bringing Private Equity Within Reach