Lower Mid-Market Buyout Strategy: Munich Private Equity Partners launches sixth generation of fund of funds

Munich Private Equity Partners (MPEP), an investment boutique specializing in private equity funds of funds for institutional investors, has launched MPEP VI. This sixth fund of funds will follow the same strategy as its predecessors and invest exclusively in primary funds with a lower-mid-market buyout strategy. The focus is on the investment regions of Europe and North America.

Through separate vehicles for each investment region, professional investors can flexibly tailor their regional allocation to European and North American funds to their needs at the time of investment.

MPEP VI is an actively managed fund that is not index-linked. Both regional vehicles are classified as Article 8 products under the Sustainable Finance Disclosure Regulation (SFDR), according to MPEP.

The total target volume is €350 million. The asset manager had previously planned €300 million for the MPEP V, the so-called lower mid-market fund generation. The program significantly exceeded this target volume during the fundraising process: MPEP V closed in November 2024 with capital commitments totaling €440 million, according to MPEP.

“Our aim is not to achieve rapid growth in assets under management, but rather to leverage the high return potential of the Lower Mid Market for our investors through partnerships with the best fund managers,” explains MPEP Managing Director Christopher Bär.

And: "Therefore, we deliberately invest exclusively in primary funds, as we are convinced that additional decision criteria, such as a strong focus on 'fee-free, carry-free' co-investment and secondary deal flow, can significantly limit manager selection." MPEP intends to focus its selection process solely on manager quality.

The fund of funds provider intends to invest in ten to twelve lower-mid-market funds per investment region: "The criteria for selecting target funds include, among other things, industry-leading results in previous investment programs, a significant investment by the fund managers with their own capital, competitive advantages in sourcing, and proven expertise in the strategic and operational development of companies across all market phases."