Crescenta PE Growth Top Performers: invest in the tech companies that will define the future

Crescenta PE Growth Top Performers I, FCR is the first fund portfolio (fund of funds) that we activated in Crescenta, together with the Buyouts fund, in which you can invest from €10,000 upwards, provided that this investment does not represent more than 10% of your assets.

The fund's name hides many clues about its strategy and objectives:

• Private Equity (PE): it is the most conventional investment strategy within private capital. It consists in investing in private companies, i.e. those that are not listed, such as family or industrial companies, with the aim of boosting their financial performance and growth.
• Growth: there are different investment strategies within PE, such as growth, which consists in taking minority positions in technology-based companies that have a high potential for growth due to offering a trending product or service that contributes to the development and growth of the economy.
• Top Performers: Top Performers: we have added this concept because the fund portfolio only invests in the best funds on the market.
• I: it indicates the fund's number. We number them because Crescenta's goal is to regularly launch new investment opportunities in this strategy. Private equity funds establish a target size based on the capital that it expects to attract. Once it is met, the fund closes and does not usually accept more investors, so if you were not able to invest in it, you can always wait for following editions of the funds.
• FCR: it specifies the type of vehicle it is, in this case it is a Risk Capital Fund.

We refer to it as a fund portfolio because it is a fund that invests in a small number of funds, which are known as underlying funds. The selection is exhaustive. We seek top-tier funds (the best in their category), and we do not include more than five to seven funds, with the aim of achieving a high level of diversification without compromising its profitability.

In total, the fund portfolio will have exposure to over 300 companies, with exposure to different subsectors within the technology sector (SaaS, infrastructure or cybersecurity), which provide high diversification by investing in various sectors, markets, geographies, etc.

In addition, these underlying funds are exclusive, since they have only been recently available to professional investors and have a minimum entry ticket of millions of euros. Insight or G Squared are two of the underlying funds in which Crescenta Growth invests.

The portfolio lasts 10 years (with the possibility of extending it another two), and it incorporates 20% of investment in secondary funds, with the aim of reducing its life cycle so you can receive distributions earlier and thus provide it with liquidity. In addition, the nature of this long-term investment helps reduce volatility levels.

The aim of the fund portfolio is to make a 2.5x on the investment (2x MOIC) and obtain an annualised return of between 18% and 22% (22% IRR).

This estimate is based on the underlying funds' history of net returns, which exceed 22% IRR.

Companies use Private Equity Growth funds to finance an accelerated business development and territorial expansion that enables them to maximise the market share while maintaining their quality and service levels and, in turn, to gradually improve their operational efficiency. The purchase of other businesses and internationalisation, among others, are also funded.

Crescenta Private Equity Growth Top Performers I, FCR is a fund designed for retail and professional investors with an investment commitment from €10,000 upwards.

This is the best type of investment in terms of risk/return if you want to build a diversified technology-based portfolio of private capital and explore trending investments by investing in companies in an accelerated growth phase.

• Diversification: at both the sector and the geographical level
• The largest universe of companies: more than 90% of companies are not listed. You will have access to companies such as SpaceX, Uber, Spotify, Vinted, Airbnb, etc.
• Access: top quartile funds or the best growth funds have very limited access, as they are usually subscribed by all their previous investors, which have always been high-net-worth investors or institutional customers. Now, Crescenta is providing the opportunity to co-invest through this type of investment from a €10,000 commitment.
• Discounts in the technology sector: after COVID, all these companies experienced a considerable rally, but in recent years access to debt has become more complicated. There is also less liquidity, valuations have experienced corrections, i.e. they have decreased, and thus we consider it a good time to enter.
• Exposure to megatrends: we believe that it is time to participate in technological trends that will shape the future, such as artificial intelligence and cybersecurity.

Ana Hernández, Investment Manager at Crescenta: “Don't forget that the best way to invest in private markets is by gradually building a diversified portfolio, which is why we believe that Growth is the perfect fund, and totally complementary to Buyouts, to create an optimal portfolio that replicates the distribution recommended by large advisory companies and private banks”.

At Crescenta we are known for carrying out an extremely exhaustive selection process, establishing a highly select preliminary filter: we only analyse flagship funds of top-tier management companies with a Buyout strategy in Large Caps and the Upper Mid-Market to end with a selection of five to seven funds.

1. Dealflow: we work on gaining access to the best international firms (KKR, CVC, Permira, Blackrock, Apollo and Ardian, among others)

2. Due diligence: we conduct a qualitative (we measure the fund's track record, ratios such as EBITDA, debt levels, return, portfolio, market, etc.); qualitative (we measure the team, the alignment of interests, the experience, the management company's value proposal, etc.) and legal (characteristics of the fund, contracts and conditions, taxation, etc.) analysis.

3. Portfolio creation: following this analysis, we select the five best funds, and we build a portfolio with the best funds, seeking total diversification (geography, vintage year, sector, strategy, management, etc.).

You can access the fund's complete prospectus in your private area.

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The information included in this post has not been approved by the National Securities Market Commission. This post has been produced for information purposes only. Neither this post nor its content constitute an offer, request or invitation to purchase, an investment agreement or commitment or any kind of decision. This post neither constitutes specific investment advice to purchase or sell an investment or to subscribe any investment contract or any other financial service, nor does it involve any advice or recommendation on tax-related matters. We recommend that any tax-related decision is consulted with lawyers and/or tax advisors.

You should not use this post as a basis for making your financial decisions. All forecasts, opinions, estimates and projections included in this post constitute a judgment reached by Crescenta or of renowned third parties, and they are provided solely for illustrative purposes. These forecasts, opinions, estimates and projections involve known and unknown risks, uncertainties and other factors that can make the actual results, performance or achievements materially different from the future results, performance or achievements expressed or implied in such forecasts, opinions, estimates and projections.

Past performance is not indicative of future returns. The value of the investments and the income derived therefrom can increase or decrease, and you may not recover the invested amount. Private Capital investments can give rise to a series of risks that investors must be able to assess.

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Crescenta