Frequently asked questions

Two Rivers Capital is a fund of funds. We pool the capital of entrepreneurs, family offices and high-net-worth individuals in a Clusterfund. With it, we invest in around 10 specialised European buyout funds, which together buy and grow more than 100 profitable lower mid-market companies. With one investment you spread across more than 100 companies, with one fixed point of contact.

€500,000. You do not pay this amount in one go. The first payment is at least €100,000. We call the rest in stages, spread over around 5 years, as the underlying funds buy companies. Because the first distributions are offset against later calls, you usually pay in around 80% of your commitment: for €500,000, on average around €100,000 a year. Read how capital calls work

The open fund targets a net return of 15% or more per year (net IRR) and a net multiple of 2.0x or more: over the full fund term, the aim is for you to get back more than 2 times the amount you have paid in.¹ This is an objective, not a promise. The actual return may turn out lower or be negative.

The Clusterfund charges a management fee and a profit share. The underlying funds charge their own fees, as is usual for private equity funds. The target net return is after all of these costs. We go through all costs with you in the introductory call. The details are in the brochure and the fund document.

The fund term of a Clusterfund is around 12 years, but your money is not fully tied up for that whole period. You pay in instalments, spread over around 5 years. As soon as the funds sell companies, usually from the fourth or fifth year, you already receive distributions. You cannot exit early. The exact fund term and any extension are set out in the fund document. See how it works in 3 minutes

As soon as the underlying funds sell companies, usually from the fourth or fifth year. Distributions then follow in instalments until the end of the fund term. Read about the J-curve

Private equity is illiquid. You cannot simply sell your interest early, as there is no stock exchange or ready buyer for it. The fund term is around 12 years. The return depends on the underlying funds and companies and may fall short of expectations. You may lose some or all of your investment. In the early years, the value of your interest is usually lower than the amount you have paid in, because costs come before proceeds. You must be able to meet every capital call, even if it comes at an inconvenient time. Diversification across around 10 funds limits the risk of a single setback, but does not eliminate risk.

The participation exemption is a corporate income tax rule. Profits that a company derives from a shareholding in another company are exempt under certain conditions, so the same profit is not taxed twice. A Two Rivers Clusterfund is a cooperative (coöperatie) and aims to invest only in funds to which the participation exemption applies. In principle, the Clusterfund then owes no corporate income tax on the proceeds from those funds. If you invest through a Dutch entity that pays corporate income tax, such as your holding BV, the exemption in principle also applies to your interest in the Clusterfund. If you invest privately or through a foreign company, different treatment applies. Have your situation reviewed by your own tax adviser.² See the worked example

Yes. The team invests €10 million of its own in each Clusterfund.

The best specialised buyout funds are often oversubscribedMore investors want to take part than there is room for, so the fund chooses who can join.. They prefer to work with a small number of investors who each commit a large amount. Two Rivers pools its investors' commitments and can get a place that way. Most funds also require a substantial minimum commitment. Spreading across around 10 funds yourself therefore means meeting that minimum 10 times. With one commitment from €500,000, a Clusterfund spreads your investment across around 10 of these funds.

The same approach, each time with a new set of funds. Clusterfonds I closed with €80 million in commitments and is in its investment period. Clusterfonds II is open for commitments. View the closed fund

Every quarter, you receive a report and there is a meeting with the partners, at which managers of the underlying funds also present their portfolios in person. Your reports and documents are available in the online investor portal. You have one dedicated point of contact.