FAQ

Frequently asked questions from investors

What are qualified investor funds?

Investments into qualified investor funds, such as Jet Funds, are not open to the general public. Jet Funds allow investors – most frequently financial institutions and individuals – to take part in much larger investment opportunities than they would be able to achieve by themselves. That means you can invest with us only if you are aware of the risks that accompany investing in the fund and if the investment is appropriate for your financial situation. You must confirm this fact in a declaration even before you invest. Your status as a qualified investor is then confirmed by the fund’s administrator.
What does it mean that Jet Funds are closed funds?

The shares investors own in the fund always correspond to the value of the assets owned (i.e. primarily illiquid ownership stakes in businesses). Therefore, it is not possible for the fund to redeem its own shares within its investment horizon at any request by one or more investors.
When can I invest into Jet Funds?

It is currently possible to invest into the Jet Industrial Lease fund.

The subscription period for the Jet 2 Fund has ended. That fund is fully subscribed. The investment horizon of the Jet 1 Fund will end in 2024 and it is no longer possible to invest into it.
What return on investment can I expect from Jet Funds?

The target internal rate of return for the Jet 2 fund, net of all expenses and fees, is set at 15% p.a.* For the Jet Industrial Lease open-ended real estate fund, the target internal rate is set at 8% p.a.* Its average annual return is 12,69% p.a. (Class I1 shares as of 31 March 2024)*.

Note: * These returns are not guaranteed. Past returns are no guarantee of future performance.
Who invests into Jet Funds?

Jet Funds are open to investments by both private qualified individuals and institutional investors such as funds of funds, family investment companies, and such financial institutions as banks, insurance companies and international asset managers.
What companies do you invest in?

In Jet private equity funds, we invest into small to medium-sized production companies in Europe that we subsequently group into industry platforms. Depending upon the development phase the individual businesses are in, we pursue our strategy by means of buy-out, growth, rescue/turnaround, or late-stage venture acquisitions. We maintain portfolio diversification while investing in industrial fields. These include in particular the new energy sectors (mechanical engineering, distribution), advanced materials, railway industry, automotive, wood processing, and opportunistic investments (healthcare and healthy lifestyle).

The Jet Industrial Lease real estate fund invests in industrial real estate (manufacturing and logistics centres, and occasionally office buildings in attractive locations) in the Central European region. The fund specializes in the sale & leaseback acquisition model.
What is the ownership structure of Jet Funds?

The partners of Jet Investment are the general partners in Jet Fund, having committed 10–20% ofcapital in the case of private equity funds and 5–15% for all other funds. The remaining shares are held by the limited partners, primarily consisting of high net worth individuals as well as domestic and international financial institutions.
When and how do you divest your companies?

We develop the companies in the private equity funds through active management. We agree to sell only at the time of their maximum market potential. Divestments in the funds may occur at any time during a fund’s investment horizon, but most probably in its second half.

We hold the Jet Industrial Lease real estate fund portfolio for the long term, but divestment may take place in the event of a very favourable market offer.
How long is Jet Funds’ investment horizon?

The investment horizon of the Jet 1 Fund will end in 2024. The investment horizon of Jet 2 Fund, is planned for 8+2 years; we therefore expect its closing in December 2028.
How and when are distributions made to investors?

In the case of private equity funds, distributions from a fund’s undeployed cash are made to investors on an ongoing basis when the fund has cash available that it has received as dividends from portfolio companies or from their sale and which it has not already reinvested into other investment projects. Distribution is always by way of redeeming the fund's investment shares or by way of dividend payments from the fund.

In the case of the Jet Industrial Lease open-ended fund, the distribution is made individually, based on each investor’s decision, and always in the form of a redemption. According to the terms of the contract, the investor can give notice to the fund of a planned redemption after 3 years and execute the redemption within 12 to 15 months after the notice.
What is a capital call?

In signing an investment contract with a private equity fund, the investor undertakes to invest an amount of the investor’s own choosing. Jet Fund thereby obtains permission to ask for those funds during the investment period through a so-called “capital call”. During the first 3 years of the investment horizon, there are several capital calls, typically before businesses are acquired. For example, Jet 1 Fund utilized six capital calls within its investment period. When a capital call goes out, the investor has at least 30 days to send the requested amount to the fund. Upon doing so, the investor receives a proportionate number of investment shares in the fund. In addition, after each capital call, the investor receives an account statement from which he or she can determine the precise number of shares the investor holds in the fund.
Can I leave Jet Funds during the investment horizon?

Private equity funds cannot be exited before the end of the investment horizon. Withdrawal is possible only if the investor finds a buyer for his or her stake, reaches bilateral agreement with the counterparty on the divestment, and obtains approval of Jet Investment.

It is possible to exit an open-ended real estate fund at any time, but not prior to 3 years from the signing of the contract. To withdraw from the fund, a minimum of 12 months’ notice is required. Investment shares are then redeemed after a minimum 1-year period and are paid out after a further 6 weeks according to the fund’s NAV as of the specified dealing date.

Private equity glossary

Angel investments

Investments into small companies at the phase of their formation. It constitutes a bridge between the initial investment by the company’s founder(s) and an entry of venture capital. Typical angel investors are individuals close to the company’s owners.

Capital call

A call from an investment company for the investor to deposit the promised investment into the fund. The sum of all capital calls may not exceed the total amount of the investor’s capital commitment.

Private equity

Collected capital of institutional investors (e.g. pension funds, insurance companies, banks, investment funds, funds of funds, and family offices), as well as high and very high net worth individuals used for direct financing of companies not publicly traded on any stock exchange.

General partner (GP)

The general partner is the manager/owner of a fund with potentially unlimited rights to act concerning that fund. He or she is responsible for managing and administering investments and, for doing so, he or she is entitled to a management fee and a percentage of the fund’s return, the amount of which is established by the fund’s bylaws.

Limited partner (LP)

A limited investor in a private equity fund (also termed a silent partner) has only limited rights in matters concerning the fund’s management and does not participate in its operations. He or she is entitled to receive returns from the fund’s investments.

Private equity fund

A fund pooling the investments of institutional investors, individual investors, and fund managers. The purpose of a private equity fund is to invest capital into companies that are not publicly traded and to generate profit by developing them and subsequently selling them off.

Private equity & venture capital

Venture capital consists of funds invested into companies in the early stages of their development. Private equity capital comprises investments into companies in the late stages of their development as well as in mature companies.

Track record

Results demonstrating a fund’s long-term profitability and rate of return

Capital commitment

Total amount an investor has undertaken to invest into a fund. This amount is invested not all at once but gradually based on capital calls from the fund’s manager at such times as the fund intends to buy new companies.

EBITDA

Earnings before interest, tax, depreciation, and amortization. It is an indicator of a company’s operating performance.

Venture investments

Investments during the initial phase of their development into smaller companies with high growth potential (start-ups) and needing financial capital for introducing a product to the market, developing an existing product or its marketing. Typical investors are venture funds.

Late stage venture

Investments into relatively developed companies with their own products but which do not have established corporate management structures for their further development as well as sufficient financial or strategic capital. Investments usually comprise managerial and financial support for new products, technologies, or general company expansion. Typical investors are private equity funds.

Growth

Investments into mature companies with established positions in their markets needing financial resources for their own development, expansion into new markets, or financing of acquisitions. Typical investors are private equity funds.

Buy-out

Purchase of a majority ownership share in a company

Acquisition

The process of acquiring a property or group of assets identified in advance. In the case of a private equity fund, this usually entails taking over a company.

Growth & dividend part of the portfolio

A combination of two fundamental parts of a portfolio characterized by returns of different types in order to diversify investment risk. The dividend part of the portfolio consists of prosperous businesses offering attractive and stable dividends. The growth part of the portfolio comprises companies with substantial potential for restructuring and subsequent growth.

Liquidity

The ability to convert assets into cash or the speed at which this can be achieved

Turn-around / rescue

Investment into companies that are performing poorly in the short term with the objective of consolidating and restructuring their operations. Liquidation processes are also permissible in certain cases.

Diversification

Distribution of the portfolio’s holdings across various investment instruments, industries or geographies, and/or company types with the objective of reducing investment risk

Cashflow

The difference between incoming cash and cash flowing out for a certain period

Due diligence

A comprehensive examination of a company that precedes an investor’s entering the target company. Among other aspects, it includes a deep and detailed financial, managerial, and technical audit.

Exit strategy

A pre-defined procedure followed upon reaching an investor’s strategic objective or a process for when the determined strategy fails. Typical exit strategies may include selling the company to a strategic partner, merger with another company, stock exchange flotation, or closing down the company.

IRR (internal rate of return)

Internal rate of return is a highly objective indicator of an investment’s performance that measures the investment’s returns and value over time relative to the invested amount.

Paid-in capital (PIC)

The proportion of capital called up relative to the total fund capital subscribed

Distributed value to paid-in multiple (DVPI)

A ratio of the cumulative amount of a fund’s distribution to the amount of capital called up

Residual value to paid-in multiple (RVPI)

A ratio of a fund’s capital value to the amount of capital called up

Total value to paid-in multiple (TVPI)

A ratio of the sum of a fund’s capital value and the cumulative amount of the fund’s distribution to the amount of capital called up. It is used as an indicator of a fund’s performance before the end of its lifetime

p. a. (per annum)

on a yearly basis

FAQ