Abante launches the second year of its global private equity fund and lowers the minimum to €50,000.

Abante has launched the second year of its global private equity fund. The financial advisory firm has launched Abante Private Equity II, a multi-strategy private equity fund of funds , offering the opportunity to invest in the leading strategies and asset managers globally in this type of asset through a single, efficient and diversified vehicle. Like the first version of the fund, the vehicle will be served by Altamar Private Equity as investment advisor.

Abante Private Equity II, FCR has a 10-year term and a target net IRR of 12%. The new features of this second version of the fund compared to the one launched in 2019 are that, on the one hand, the minimum investment amount has been lowered to €50,000 and, on the other, it includes a life insurance policy that covers the committed capital in the event of the investor's death. This facilitates retail investors' access to this private markets investment strategy, which offers broad diversification with a low correlation with listed markets.

"With Abante Private Equity II, we are reinforcing our commitment to bringing private equity closer to individual investors, offering them the opportunity to incorporate a type of asset into their portfolios that allows for diversification as it is low in correlation with listed markets. We also expect this type of asset to continue growing in the coming years ," said Joaquín Casasús, partner and managing director of Abante. "This fund allows individual investors, who still have low exposure to private assets, to access, through active management, unlisted companies with high long-term growth potential and to capture and capitalize on global market trends," he added.

This life insurance policy represents an innovation in this type of investment, launched by Abante and Mapfre. It is a group life insurance policy for individuals that covers, in the event of death, the outstanding liability of the deceased. The policyholder and the party who assumes the premium is the manager, the insured is the participant, and the beneficiary is the fund. The insurance has a limit of two million euros per liability, the maximum age to join is 67, and the insurance expires at 75. The cost of the insurance will be borne by Abante's management company.

With this innovative insurance, as Casasús explains, " some people's reluctance to invest in private equity is overcome , because, as it is an illiquid product with a long investment period, they were worried about leaving their families with a problem if something happened to them and their heirs were unable to meet their commitments."

Abante Private Equity II, FCR will have a highly diversified portfolio , both in terms of managers and by stage of the economic cycle, company size, economic sectors, value creation strategies, geographies, etc. Due to the market momentum, Abante Private Equity II will have a greater weighting in secondaries than the vehicle launched in 2019, but will maintain its majority exposure to primary buyout funds . Thus, it is designed so that investors who already have the first version in their portfolio can gradually invest in it as the first version begins to make distributions.