{"id":1955,"date":"2025-09-21T14:43:27","date_gmt":"2025-09-21T14:43:27","guid":{"rendered":"https:\/\/tworivers.capital\/frequently-asked-questions\/"},"modified":"2026-11-11T10:13:00","modified_gmt":"2026-11-11T10:13:00","slug":"frequently-asked-questions","status":"publish","type":"page","link":"https:\/\/staging.tworivers.capital\/en\/frequently-asked-questions\/","title":{"rendered":"Frequently asked questions"},"content":{"rendered":"\t\t
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Frequently asked\u00a0questions<\/h1>\n

The questions investors ask us most often. Would you rather speak to someone directly? Call +31 (0)20 261 19 76<\/a> or book an introductory\u00a0call<\/a>.<\/p>\n <\/div>\n <\/section>\n

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What exactly does Two Rivers Capital\u00a0do?<\/summary>
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\u00a0contact.<\/div><\/details>\n
What is the minimum\u00a0commitment?<\/summary>
\u20ac500,000. You do not pay this amount in one go. The first payment is at least \u20ac100,000. 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 \u20ac500,000, on average around \u20ac100,000 a year. Read how capital calls\u00a0work<\/a><\/div><\/details>\n
What is the target\u00a0return?<\/summary>
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<\/sup> This is an objective, not a promise. The actual return may turn out lower or be\u00a0negative.<\/div><\/details>\n
What are the\u00a0costs?<\/summary>
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\u00a0document.<\/div><\/details>\n
How long is my money tied\u00a0up?<\/summary>
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\u00a0minutes<\/a><\/div><\/details>\n
When will I receive\u00a0distributions?<\/summary>
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\u00a0J-curve<\/a><\/div><\/details>\n
What are the\u00a0risks?<\/summary>
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\u00a0risk.<\/div><\/details>\n
How does the participation exemption\u00a0work?<\/summary>
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 (co\u00f6peratie) 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<\/sup> See the worked\u00a0example<\/a><\/div><\/details>\n
Does the team invest its own\u00a0money?<\/summary>
Yes. The team invests \u20ac10\u00a0million of its own in each\u00a0Clusterfund.<\/div><\/details>\n
Why invest through Two Rivers rather than directly in the\u00a0funds?<\/summary>
The best specialised buyout funds are often oversubscribedMore investors want to take part than there is room for, so the fund chooses who can\u00a0join.<\/span><\/span>. 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 \u20ac500,000, a Clusterfund spreads your investment across around 10 of these\u00a0funds.<\/div><\/details>\n
What is the difference between the\u00a0Clusterfunds?<\/summary>
The same approach, each time with a new set of funds. Clusterfonds\u00a0I closed with \u20ac80\u00a0million in commitments and is in its investment period. Clusterfonds\u00a0II is open for commitments. View the closed\u00a0fund<\/a><\/div><\/details>\n
How will I be kept informed as an\u00a0investor?<\/summary>
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\u00a0contact.<\/div><\/details>\n <\/div>\n