Want to know more about feeder funds or the working method of Marktlink Capital? Please feel free to contact us for further explanation.
In this blog, we explain what feeder funds are and why they are an interesting tool for your investment strategy.
You probably know Marktlink Capital from our fund-of-funds, where you, as an investor, invest in a basket of different private equity or venture capital funds. However, with a feeder fund, you invest in one specific fund. We offer these feeder funds for leading funds such as Parcom, Egeria, Forbion, and secondary funds from ICG and CVC. This way, through Marktlink Capital, you gain (exclusive) access to renowned funds that have shown great results for years.
There are a few key reasons to invest in feeder funds, in addition to your investments in the fund-of-funds.
Exclusive access to top funds
With feeder funds, it is possible to directly connect with the winning strategy of strong funds. Normally, this is difficult because funds often have a high entry threshold—think several million. To overcome this, your investment is bundled by us in a feeder fund with the commitments of other private investors. With the feeder, we have the same mission as with our fund-of-funds, namely to give you, as a private investor, access to the best-performing funds.
Portfolio accents
With feeders, you can very specifically accentuate your portfolio. By choosing certain funds with a clear sector focus or strategy, you can tailor your investment strategy to your broader financial situation and investment goals.
Attractive cash flow profile
Not all funds have the same cash flow profile, as there can be some differences in the pace at which money is called or distributed. Many investors invest in a secondaries feeder to optimize their cash flow profile. Since secondary funds invest in mature fund portfolios or companies, the fund's duration is often relatively shorter, meaning the money is expected to be called and returned faster than with a regular PE fund.
