Why and how to invest now in Private Real Estate?

After some challenging times for global real estate markets, there is a general feeling that an inflexion point has been reached in a number of sectors with the notable exception of conventional offices in secondary locations.

To help you navigate through a still hazy environment, we felt it would be useful to share with you our conviction.

IK’s 4 key sectors of expertise

IK Partners: a leading European Private Equity firm in the lower to mid-market segment, with a consistent track record

Since launching its mid-market strategy in 1989, IK has raised 10 flagship funds and invested more than €11 billion across 120 companies.

For the last 3 vintages, the companies sold by IK VII, VIII and IX generated a strong performance, with a gross return of 2.7x¹ the invested amount and a gross IRR of 26%¹.

IK’s distinctive value-creation strategy focuses on scale and earnings growth, transforming strong local businesses into international leaders through operational improvements and buy-and-build strategies.

Another of IK’s competitive advantages is their discipline and selectivity, targeting premium assets with strong economic fundamentals and high growth potential.

1. As at 31 March 2024. Past performance is not a reliable indicator of future performance. No guarantee is given on the success, profitability, return or benefit of this investment.

Private Equity remains a great opportunity

Diversification

Private Equity provides diversification in a portfolio, aiming for high returns to compensate for illiquidity and a long-term maturity. In addition it continues to outperform* stock markets over the long term during different economic cycles.

Good Momentum

Periods of economic downturn are usually good entry points for Private Equity funds to capitalize on attractive entry valuations

Attractive returns*

Leading Private Equity managers are well equipped to seize attractive opportunities and implement growth strategies based on operational efficiency and the ability to adapt to complex and uncertain environments.

* Past performance is not a reliable indicator of future performances. No guarantee is given on the success, profitability, return or benefit of this investment

Why invest in IK X?

Established institutional presence in the European Mid-market space

• A leading European GP investing in lower- to mid- market companies for over 3 decades.

• A unique positioning in the European mid-market, leveraging the scale and resources of a large-cap-like platform, with a strong local presence and in-house dedicated operations team.

Value creation strategy focusing on Scale and Earnings Growth

• Transforming strong local businesses into international leaders through operational improvements and pre-identified buy-and-build strategies.

• Targeting premium assets with strong economic fundamentals and high growth potential.

Focus on Resilient Sectors in the Middle market

• 4 key sectors: Business Services, Healthcare, Consumer and Industrials.

• Across Northern Europe: France, the Nordics, DACH**, the Benelux and UK & Ireland.

**Germany (D), Austria (A), and Switzerland (CH).

Attractive and Consistent 30-year Track Record

• The strategy generated a 2.7x¹ Gross MOIC and 26%¹ Gross IRR on realized deals on the last 3 vintages (IK VII, VIII and IX)³. Since inception, 2.3x¹ Gross MOIC and 34%¹ Gross IRR on realized investments in the Mid Cap strategy⁴.

• For IK X, the firm is targeting above 2.5x² Gross MOIC and 25%² Gross IRR.

Source: IK Partners – June 2024 and BNP Paribas Wealth Management – June 2024.

1. As at 31 March 2024. Past performance is not a reliable indicator of future performances. No guarantee is given on the success, profitability, return or benefit of this investment. – 2. Source : IK Partners. Target returns are not reliable indicator of future performance, and no guarantee or assurance is given that such performance targets will be achieved. Actual results may differ materially from the target returns presented herein. Any investment involves significant risk, including the loss of principal. – 3. For information purposes, IK VII was the first fund raised under the current leadership of the Mid Cap strategy. – 4. For information purposes, the track record of all IK funds since inception (realized and unrealized deals) is 2.0x Gross MOIC and 34% IRR.

Introducing BNP Paribas Wealth Management's Private Equity Senior Management

Claire Roborel de Climens

Global Head of Private and Alternative Investments ·
BNP Paribas Wealth Management

Since joining BNP Paribas Wealth Management in 2004, Claire Roborel de Climens has set up the Private Equity Group. In 2010 she was also nominated Head of Real Estate. In 2015, she became Head of the Private and Alternative Investments department, adding the Hedge Funds, Strategic-A (asset allocation service), Philanthropy Advisory and AgriFrance activities to her scope of responsibility.

Claire sits on the board of Global General Partner, the AIFM manager of Private Assets feeder funds, as well as on the Advisory Boards of various international Private Equity, Infrastructure and Real Estate funds.

Prior to joining BNP Paribas Wealth Management, Claire worked ten years for PAI Partners, a leading pan-European Private Equity firm, as a manager in the Finance Department, Investor Relations activities and then as an investor in the General Industrials sector where she was involved in many LBO transactions.

She started her career as an auditor at Ernst & Young where she worked for six years for large industrial groups and Private Equity funds. Claire Roborel de Climens is a graduate of the EMLyon business school.

To learn more about this opportunity

Contact your Relationship Manager

DISCLAIMER

This confidential document is communicated by the Wealth Management métier of BNP PARIBAS SA a French limited liability company with share capital of EUR 2,468,663,292 whose registered office is located at 16 boulevard des Italiens 75009 Paris, France, registered with the Paris Trade and Companies Registry under number 662 042 449, supervised and authorised as a Bank by the European Central Bank ("ECB") and in France by the French Autorité de Contrôle Prudentiel et de Résolution (“ACPR”) and regulated by the French Autorité des Marchés Financiers (“AMF”) (hereinafter BNP Paribas).

IK X Fund No.2 SCSp is a Luxembourg special limited partnership (société en commandite spéciale), formed under the laws of the Grand Duchy of Luxembourg and qualifies as an alternative investment fund pursuant to the Luxembourg Law of 12 July 2013 on alternative investment fund managers as amended ( the "AIFM Law"), (the "Master Fund"). Its General Partner is IK X Fund GP S.à r.l. a Luxembourg private limited liability company (société à responsabilité limitée). It is managed by IK Investment Partners AIFM, a Luxembourg limited liability company (société à responsabilité limitée) and regulated by the Commission de Surveillance du Secteur Financier (“CSSF”) the Luxembourg financial regulator, appointed pursuant to an alternative investment fund management agreement and any replacement alternative investment manager to the Master Fund for the purposes of AIFM Law and Directive 2011/61/EU.

PrivAccess XV – Europe Mid Cap X is a compartment of PrivAccess XV SICAV-RAIF SCA (hereinafter “Feeder Fund“) a Luxembourg investment company with variable capital, structured under the form of a Multi-Compartment Reserved Alternative Investment Fund, registered as a corporate partnership limited by shares, notified to the CSSF. It is managed by its general partner: PrivAccess General Partner S.à r.l., and Global General Partner SA, which is an Alternative Investment Fund Manager authorised by the Luxembourg CSSF, has been appointed to manage the Feeder Fund.

This material is confidential and intended solely for the use of the person to whom it has been delivered and must not be distributed, published or reproduced, in whole or in part nor may it be quoted or referred to in any document without the prior consent of BNP Paribas. This confidential document is provided solely for the purpose of providing general information and shall not constitute an offer, a solicitation or an investment advice nor shall it form the basis of or be relied upon in connection with any subscription or commitment. In addition, this confidential document and its content shall not in any way be construed as an advertisement, inducement or recommendation of any kind or form whatsoever. For the purposes herein, “BNP Paribas” means BNP PARIBAS SA and its respective affiliates and related corporations.

Although the information provided herein may have been obtained from published or unpublished sources considered to be reliable, and while all reasonable care has been taken in the preparation of this confidential document, BNP Paribas does not make any representation or warranty, express or implied, as to its accuracy or completeness and does not accept responsibility for any inaccuracy, error or omission nor any liability for the use of or reliance on this confidential document or any part of the information contained herein. Past performance is not a reliable indicator of future performance. BNP Paribas is not giving any warranties, guarantee or representation as to the expected or projected success, profitability, return, performance, result, effect, consequence or benefit (either legal, regulatory, tax, financial accounting or otherwise) of any security.

Prior to making any commitment, the investor should take advice from his legal, tax and financial advisors. Subscribers should be in a position to fully understand the features of the subscription and be financially able to bear a loss of their investment and be willing to accept such risk. Save as otherwise expressly agreed in writing, BNP Paribas is not acting as financial adviser of, or in any fiduciary capacity to, the subscriber in any subscription.

This confidential document contains only a summary of certain sustainability related aspects of the Feeder Fund and is not purported to be complete nor does it constitute an offer to invest in the Feeder Fund. It is not intended to be complete and will be qualified in its entirety by reference to the Issuing Document, which should be read in its entirety, in particular as regards the pre-contractual disclosure obligations under the SFDR, including how applicable sustainability risk factors are integrated into the decision-making process and their impact on returns. The descriptions or terms regarding sustainability-related aspects of the Feeder Fund in the Issuing Document shall prevail. See SFDR Sustainability-Related Disclosures (i) in the Issuing Document which has been communicated to you before your potential commitment into the Feeder Fund and which will remain available after your commitment into the Feeder Fund on the page https://services-uk.sungarddx.com/LogOn/128060, and (ii) in the SFDR Sustainability-related Disclosures which are available before your potential commitment into the Feeder Fund on the pages https://mywealth.bnpparibas.lu/content/dam/wealth/common/ggp/Website_Sustainability-Related_Disclosures-(PrivAccess_XV-Europe_Mid_Cap_X).pdf and https://mywealth.bnpparibas.lu/content/dam/wealth/common/ggp/Summary-Website_Sustainability-Related_Disclosures_FR-IT-DE-SP-NL.pdf which will remain available after your commitment into the Feeder Fund on the page https://services-uk.sungarddx.com/LogOn/128060.

Any document containing additional information concerning the Feeder Fund and in particular the Issuing Document, the annual reports (which are made available to the investors on a regulatory basis after its investment in the Feeder Fund), the subscription document and the Master Fund documentation are available in English upon request from your relationship manager and from PrivAccess General Partner S.à r.l. (contact details below). If you want more information, especially on the structure of the Feeder Fund and the risks associated with an investment in this Feeder Fund, we advise you to read these documents.

PrivAccess General Partner S.à r.l. – 50, avenue J.F. Kennedy,

L-1855 Luxembourg – Grand-Duchy of Luxembourg

contact@ggp.bnpparibas.com – 00 352 4242 2000

The summary of investor rights is available here or on the page https://wealthmanagement.bnpparibas/lu/en/global-general-partner/Summary-of-investors-rights.html.

An investment in the Feeder Fund should be conditioned upon the previous reading and understanding of its Issuing Document and its Subscription Agreement, which are available in English only, and – in relation to the offer to non-professional investors in Italy, Germany and Belgium and Retail investors in Belgium and Luxembourg - its KIDs, which are available in the relevant language; such documents describe the rights and obligations of the investors. Therefore, prospective subscribers should not rely on any other information not contained in such Issuing Document, Subscription Agreement and Key Information Document (KID).

Under no circumstances will the Feeder Fund, PrivAccess General Partner S.a.r.l, Global General Partner SA, BNP Paribas, the Master Fund, IK X Fund GP S.à r.l., and IK Investment Partners AIFM, pay or reimburse any current or future taxation in the subscribers’ country of origin, residence or domiciliation or wherever subsequent to the subscription, holding, conversion, sale or liquidation of ordinary shares in the Feeder Fund. The subscriber will be responsible for such payment or reimbursement.

No measures have been nor will be taken in any country or territory for the purposes of allowing a public offering of the investment described in this confidential document, or the holding or distribution of any document relating to this investment. These ordinary shares are not recommended by any federal or state securities commission or any other regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this confidential document. BNP Paribas, PrivAccess General Partner S.à r.l, Global General Partner SA, IK X Fund GP S.à r.l. , and IK Investment Partners AIFM are separate legal entities.

This confidential document is not for distribution to US Persons and US Persons are not eligible to apply to become Shareholders in the Feeder Fund. The ordinary shares of the Feeder Fund will be offered and sold only outside the United States to persons who are not US Persons, in reliance on Regulation S.

The Feeder Fund has been notified, under the relevant provisions of the AIFMD, for marketing in Italy towards professional investors (as defined in Italy pursuant to art. 6, parr. 2-quinquies and 2-sexies, of the Legislative Decree n. 58/1998 as amended – “TUF” - and its implementing measures) and other categories of investors as identified pursuant to art. 14. 2 of the regulation implementing art. 39 of TUF adopted by the Italian Treasury with Decree n. 30 of 5 March 2015, as amended by Decree n. 19 of 13 January 2022 (and, in particular, pursuant to art. 14.2.b), to non professional investors who – within the context of the provision of investment advisory services – subscribe for or acquire shares of the Feeder Fund for an initial amount not lower than 100,000 Euros (initial amount not lower than 100,000 Euros for this Feeder Fund) (always provided that, by effect of such subscription or acquisition, the total amount of their investments in reserved AIFs does not exceed 10% of their financial portfolio; the initial participation amount is not fractionable).

In relation to the offer to non-professional investors in Italy – the Key Information Document (KID) in Italian of the Feeder Fund have been communicated to you before your potential commitment into the Feeder Fund (and in particular through dedicated URLs) and will remain available after your commitment into the Feeder Fund on the page https://services-uk.sungarddx.com/LogOn/128060 and the information on “Facilities available to retail investors” (both in English and in Italian) are available or on the public page https://wealthmanagement.bnpparibas/lu/en/global-general-partner/Information-about-the-facilities-Italy.html

More globally and in relation to the offer to non-professional investors in Belgium, Germany, Luxembourg and Italy, the Key Information Documents (KID) written in French, Flemish, German, Italian and English have been communicated to you before your potential commitment into the Feeder Fund (and in particular through dedicated URLs) and will remain available after your commitment into the Feeder Fund on the page https://services-uk.sungarddx.com/LogOn/128060

The Issuing Document of the Feeder Fund is also available for investors only on the same page https://services-uk.sungarddx.com/LogOn/128060.

By accepting this documentation, the subscriber agrees to be bound by the foregoing limitations.