· What is the main objective of the fund?
From Natixis Investment Managers we have launched a fund that we think will allow the entry of all investors who do not have much experience or have not historically had the opportunity to invest in private markets, to be able to do it for the first time. It is a fund that first, It offers a very important diversification of assets. Through a single fund and a single portfolio, the investor will be able to have exposure to private capital with different strategies senior and subordinate private debt, infrastructure, both the capital part and the part of the debt and also the entire real estate part, again, again, both with capital and debt. It is intended to be a complete vehicle that exposures all the typologies of private markets that exist. In addition, it will have a very simple operation, we will not have capital calls or distributions. It will be hired as a liquid background with a quarterly ship.
Investors They will enter the quarter once to that NAV and when they want to leave the same they will leave the quarterly ship that there are at that time. This is the Evergreen component, an unplanmed fund where each investor chooses their own expiration when they want to get out of the bottom. It is a fund that, within the ElTif 2.0 framework, allows access to non -professional investors from € 10000. Historically, private markets have been reserved for large institutional investors, insurers, foundations, pension plans, family officers. With this solution we intend to democratize the access of all types of investor, not professional in this case, to private markets, with the advantages that these markets offer.
The background It will have exposure to the different types of dynamic assets, it will not be permanent. In the fund management, for example, the entire Natixis strategy team participates, among other things, our chief economist Mabrouk Chetouan, to, depending on the macroeconomic perspectives, monetary policy and the predictable behavior of capital markets that have, overcome or infraction some type of asset. For example, if our strategy team provides that, with Trump’s tariff policy the world will enter into recession in 2026-2027, for example, the background as that moment approaches, would reduce its exposure to those most cyclical assets such as Private Equity or real estate, for example Venture Capital, and possibly the exposure to more resistant assets as infrastructure or debt would possibly upload.
· What type of private assets includes the fund (Private Equity, Private Debt, Infrastructure, Real Estate, etc.)
The initial Asset Allocation in which the fund will be is approximately 50% in private capital, with different strategies. 10% in private debt, approximately 10% in infrastructure capital, 5% in infrastructure debt and approximately 10% between capital and real estate debt. There will be a permanent liquidity reserve of 15%. ELTIF regulation requires a minimum of 10% liquidity. We, being a bit conservative, we wanted to rise to 15%. The fund will invest at least 50% in underlying funds from different Natixis managers.
· What criteria do you use to select underlying assets or funds?
In Natixis Investment Managers we have a multigestor model, we now have 18 managers, nine of them with advanced management capabilities in private markets. At least half of the fund will be invested in funds from the house. The other, up to 50,%, are going to be external funds, where we will possibly go to first level Tier 1 funds in each type of asset. In such a way that the solution will mix internal funds of the house, more focused on the Mid Market, with external funds, surely more focused on the upper Market or the Upper Mid Market.
· What has been the historical profitability (if any) and what is the objective profitability?
In this type of funds we do not talk about Tir, because it always has a temporary component of the flows. We talk about annualized profitability and multiple at the exit. Those are the two metrics in terms of performance we handle. The idea we have with this fund in the clean class is to offer a net annualized profitability of more than 10%. With that we are going to have the net exit multiple after 10 years, which is the average possession of this type of funds that we see in the market, the investor would come out with a net multiple between two 2.5 times his money. That is, an inverter who invested € 10000 in the next closure, which we are going to do in June 2025, the expectation is that in June 2035 it could go out with a net profitability between € 200,000 and € 25000 over those € 10000 that initially invest.
These calculations are also quite conservative because we have not taken into account the possible selection effectthat is, if we are able to select the best underlying funds, nor that dynamic Asset Allocation that spoke. If we are able to overcome or underprate, depending on the vintage, the best funds in private markets. In fact, there is a very important component of the effect of the final profitability that the investor obtains because not all the vigns, nor private capital, nor private debt … offers the same profitability.
· What investor profile considers most suitable for this fund?
The regulation, eltif 2.0. to which this fund is accepted allows the investment of non -professional investors from € 10000. That is to sayin principle this would be a very aligned idea with investors that have little experience in private markets and that they want to make a first foray from the diversification of the background and the operation so simple. That said, it is true that private markets obviously have a premium of illiquidity with which you have to count.
Private markets, from our point of view, are going to play a more strategic role in the composition of portfolios. They have clear raw advantages of additional profitability, less volatility, much more exposure to the real economy and not to the financial economy, more impact capacity, etc. But of course, All this is at the cost of not having a daily liquidity as the UCits funds have. In the case of our Fund, we establish a Look UP Pours, that is, a period in which you cannot leave until 2030. From the launch of the fund in 2025 to 2030. These first five years the background is completely closed, completely illegid. We have done so, first so that any investor that enters it has the need to have a long -term vision.
Likely an investor that wants to be only 12 or 24 months invested in a background of these characteristicsNot a suitable background for him. And in addition, we have made this period of illiquidity to let our managers compose the best possible portfolio without worrying about having to face possible refunds in the short term. We think that it will maximize the profitability of the fund and that it will be for the benefit of all investors. From 2030 the quarterly liquidity windows open, where the investor would have to, with a six -month notice, notify that he wants to get out of his investment and in that case, with those quarterly liquidity I could leave.
Obviously this is limited with typical gates Of the 5 % that establishes the regulation, but in principle we think it is a good idea for all those investors with that long -term mentality who want to diversify their liquid portfolio towards ilequid assets and benefit from the advantages they have with a first experience. That is, in a very simple way, with a very diversified portfolio, with an operation that will not have capital calls or distributions, but will be operationally relatively similar to a liquid background where you enter and leave the NAV.