Risks
No return/profit guarantee: Past returns and forecasts are no guarantee of success in the future.
Lack of influence: In principle, Kapital 1852 has no right to influence the selection of target companies by the target fund managers. The fund-of-funds does not acquire any voting or control rights of its own in the target companies, even during the term of the fund.
Blind pool: The private debt fund-of-funds does not yet have a (full) stake in target funds at the time of investment.
Illiquidity: Shares are typically not publicly traded and can therefore only be sold at a significant discount to the fair values and/or book values during the term of the investment and with the consent of the GP.
Currency risk: The Infrastructure Debt fund-of-funds follows a global investment strategy, which may result in currency risks at the investment and/or target fund level.
Leverage: The use of leverage is often permitted and common at the target fund and investment level. While the use of leverage can improve performance, it also increases the potential for losses.
Fair value fluctuations: The value of the respective target funds may fluctuate significantly due to macroeconomic drivers and/or other changing market conditions, including in particular
market interest rates.
Taxes: The tax implications of the various jurisdictions in which the fund-of-funds is active are not yet known at the time of investment and may also change during the term of the fund-of-funds. Additionally, the investor bears the risk of the tax and regulatory conception of the fund-of-funds and the investments made by the fund-of-funds.
Total loss risk: Losses in value up to the amount of the total loss of the invested capital are conceivable through the realisation of risks.
Issuance risk: A low placement volume may result in lower diversification or unwinding.