In order to use this know how, a fund of funds with a volume of €91.6m was launched in June 2000.
From 2000 to 2004, a total of 12 financial investments involving volumes between €2.5m and €10.0m were made and the entire NORD KB volume was invested. The chart below illustrates the diversification of risk pursued by the fund of funds for the 12 target funds to currently 109 portfolio companies, the accumulated sales of which amount to more than €10bn. This broad distribution leads to a comprehensive diversification of risk that can only be achieved by a fund of funds.
In 2006 a second fund of funds, the NORD KB Dachfonds II was launched with a volume of €220m. The chart below illustrates the strong risk diversification. There are 67 portfolio companies in 13 target funds so far. With the end of the investment period the risk will be shared between 16 target funds and approximately 200 portfolio companies.
In 2010 the third fund of funds, the NORD KB Dachfonds III was launched with a target size of €200-300m. Fund of funds fundraising will be closed in the first quarter of 2011. Because of the prosperous development of the predecessors many of the existing investors of the first two funds of funds decided on investing again. Through this 75% of the total commitments of NORD KB II could already be reached again.
The investors of NORD KB include savings banks (60%), federal state banks (10%), public insurances (20%) and pension plans (10%). The minimum subscription amount is €5m, which corresponds to an average commitment of funds of €1.5m based on the experience made with capital calls.
As with the first two funds of funds, a target return of a minimum of 15% annually is intended to be achieved for the NORD KB Dachfonds III.