Key Information Document
INVESTOR CLASS
Purpose
This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products.
Product
Product: Bluegem III (“Fund”)
PRIIPs Manufacturer: Bluegem III UK Limited (the “Company”)
Competent Authority: The Financial Conduct Authority (“FCA”)
Release Date: 17th March 2020
Please visit https://www.bluegemcp.com/ for further information or contact Bluegem Capital Partners LLP at Eagle House, 5th Floor, 108-110 Jermyn Street, London SW1Y 6EE or at e-mail enquiries@bluegemcp.com
You are about to purchase a product that is not simple and may be difficult to understand.
What is this product?
Type: The Fund is a Luxembourg special limited partnership (société en commandite spéciale), established and existing under the laws of the Grand Duchy of Luxembourg, whose registered office is at 4, rue Lou Hemmer, L-1748 Sennigerberg, Luxembourg. The Fund is managed by Lemanik Asset Management S.A. The Fund qualifies as an alternative investment fund within the meaning of the Directive 2011/61/UE on alternative investment fund managers (the "AIFMD") as implemented in Luxembourg by the law of 12 July 2013 on alternative investment fund managers, as amended from time to time (the "AIFM Law"). Lemanik Asset Management S.A (the "AIFM") has been entrusted with the portfolio management and risk management of the Fund
Objectives: Bluegem III represents a continuation of Bluegem’s distinctive and successful approach to private equity investing: i) a disciplined approach to identifying hidden gems in the consumer space with good value creation potential and ii) a relentless passion to unlock this potential to generate superior returns for investors.
Bluegem’s strategy, team composition, sourcing efforts, investment process, portfolio monitoring approach and fund size are all driven by this focused investment strategy. The primary focus of Bluegem III will be to make control buyout investments of €30 million to €80 million into medium-sized companies in Western Europe where Bluegem has identified compelling opportunities to create value. Bluegem III, like Bluegem II, will focus on one sector only: consumer brands. Following Bluegem I and Bluegem II’s robust performances and the historical commitment of investors (re-up rate of 92% from Bluegem I to Bluegem II), Bluegem is aiming to raise €500 million of commitments for Bluegem III.
Intended retail investor: The Fund is intended for sophisticated investors, investment professionals, high net worth bodies corporate, unincorporated associations and partnerships and trustees of high value trusts who wish to invest for the long term, have experience in investing in financial markets and collective investment undertakings, who understand the risks involved in investing in the Fund (and/or those who have received advice from their fund manager, adviser or broker regarding investment in the Fund and who can bear the economic risk of a substantial or entire loss of their investment and who can accept that there may be limited liquidity in the Fund). Investors should familiarise themselves with the risks involved and must evaluate the Fund's objective and risks in terms of whether they are consistent with their own investment goals and risk tolerances. No investment in the Fund is intended as a complete investment plan.
Maturity Date: The Fund does not have a fixed life.
What are the risks and what could I get in return?
RISK INDICATOR
⚠️
The risk indicator assumes you keep the Product for 10 years. You may not be able to cash in early. You may have to pay significant extra costs to cash in early.
The summary risk indicator is a guide to the level of risk of the Product compared to other products. It shows how likely it is that the Product will lose money because of movements in the market or because we are not able to pay you. We have classified this Product as 4 out 7, which is a a medium risk class. This rates the potential losses from future performance at a medium level, and poor market conditions could impact our capacity to pay you. This Product does not include any protection from future market performance so you could lose some or all of your investment. If we are not able to pay what is owed, you could lose your entire investment.
The following are some of the other types of risks materially relevant to the Shares which are not taken into account in the summary risk indicator:
Operational; key personnel; investment (related to the assets); asset valuation, financing and regulatory
See further the Annual Report for the Company as cited in the section "Other Relevant Information" below.
PERFORMANCE SCENARIOS
This table shows the money you could get back over the next 10 years, under different scenarios, assuming that you invest in €10,000 from the outset. The scenarios shown illustrate how your investment could perform. You can compare them with the scenarios of other products. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and are not an exact indicator. What you get back will vary depending on how the market performs and how long you keep the investment. The stress scenario shows what you might get back in extreme market circumstances, and it does not take into account the situation where we are not able to pay you. The figures shown include all the costs of the product itself, but may not include all the costs that you pay to your advisor or distributor. The figures do not take into account your personal tax situation, which may also affect how much you get back.
What happens if the Company is unable to pay out?
Investors may suffer loss If the Company is unable to pay out. Investors do not have protection from an Investor compensation or guarantee scheme.
What are the costs?
The Reduction in Yield (RIY) shows what impact the total costs you pay will have on the investment return you might get. The total costs take into account one-off, ongoing and incidental costs.
The amounts shown here are the cumulative costs of the product itself, for three different holding periods. They include potential early exit penalties. The figures assume you invest £10,000. The figures are estimates and may change in the future.
COSTS OVER TIME
The person selling you or advising you about this product may charge you other costs. If so, this person will provide you with information about these costs and show you the impact that all costs will have on your investment over time.
COMPOSITION OF COSTS
The Table below shows:
The impact each year of the different types of costs on the investment return you might get at the end of the recommended holding period; and
The meaning of the different costs categories.
How long should I hold it, and can I take money out early?
RECOMMENDED HOLDING PERIOD (RHP): 10 YEARS.
Investors are tied in for a minimum of 10 years. The term of the Fund shall continue until the tenth anniversary of the First Closing Date. Disinvestment will take place at the end of the Funds life. Investors may transfer with General Partners approval.
The Fund may extend by an additional one-year period at the General Partners sole discretion then by a further additional one-year period, at the election of the General Partner with LPAC (Limited Partner Advisory Committee) approval.
How can I complain?
As a shareholder of the Company you do not have a right to complain to the Financial Ombudsman Service about the management of the Company. Complaints about the Company or the key information document can be made via e-mail to the address given on the Company’s online at https://www.bluegemcp.com/ or directed to either Bluegem Capital Partners LLP) on +44 (0)20 7647 9710 and/or enquiries@bluegemcp.com with registered office Bluegem Capital Partners LLP at Eagle House, 5th Floor, 108-110 Jermyn Street, London SW1Y 6EE
Other relevant information
The disclosures in this KID, including the cost, performance and risk calculations follow the methodology prescribed by EU rules. The performance figures have been arrived at as a reasonable and conservative best estimate of the expected values for the performance scenarios. This KID document and all other regulatory disclosures from the fund are available on our website https://www.bluegemcp.com/