Independent asset manager UP2INVEST and the Germany-based fintech CrossLend have announced creating a scalable investment solution for German pension funds using a reverse engineering approach.
UP2INVEST’s fund UP2 German Opportunity Fund 1 (GOF1) invests in venture capital and private equity in the DACH region through selected target fund managers. CrossLend is a fintech company offering credit asset transactions technologies. UP2INVEST, CrossLend, and Germany-based private bank M.M.Warburg created a securitisation solution for pension funds, which took 2 months to design and implement.
This solution aims to have a clear risk/return profile through balanced asset allocation in the PE/VC segments and acquisition within the regulatory framework of a pension fund. In line with the fund conditions of the GOF1, CrossLend has issued a registered bond with a similar term via a special purpose vehicle. The funds invested are available to the GOF1 master fund for target fund investments in German medium-sized companies and start-ups.