KID PRIIP
Final Frontier Liftoff K/S
1. Regulations
The regulation on key-information documents for Packaged Retail and Insurance-based Investments Products(PRIIPs), is presented in the following regulations:
In Regulation (EU) No 1286/2014 of the European Parliament and of the Council:
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R1286Commission Delegated Regulation (EU) 2017/653 revised on 01.01.2023:
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02017R0653-20230101Commission Delegated Regulation (EU) 2021/2268 :
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32021R2268
2. Method classification
The fund has been classified as Category 3. This classification is primarily due to the fact that the underlying investments are made in real assets, the value of the PRIIPs does not develop linearly with an investment in the underlying asset, and there are appropriate benchmarks/proxies available for modelling that meet the specified requirements.
As a result of this classification, the modelling of performance scenarios and the summary risk classification are conducted in accordance with the prescribed modelling requirements for a Category 3 KID PRIIPs, as outlined in Regulation (EU) 2017/653 Delegated Regulations.
3. Benchmark used for modeling:
To apply the calculations set out in the regulation and given that the fund is newly established with no historical price data, a valid benchmark or proxy is required. This benchmark/proxy must possess a sufficient price history and duration that comply with the regulatory requirements. Additionally, it must be representative of the fund in terms of structure, return and risk profile, asset class exposure, and geographical exposure.
The selected proxy is the MSCI Europe Aerospace & Defense Index, a sector-specific gross return index published by MSCI, designed to track the performance of European companies within the aerospace and defense sectors. The index includes a representative group of companies operating in areas such as defense technology, satellite communications, surveillance, drone technology, and related dual-use solutions - core areas of the fund’s investment strategy. The index is particularly relevant for funds with exposure to the defense and space industries, as it reflects the economic dynamics and performance patterns typical of such investments. Its geographic focus on Europe aligns with the fund’s regional investment scope, while the return and risk profile are consistent with the fund’s expected performance characteristics. Additionally, the MSCI Europe Aerospace & Defense Index offers a sufficiently long and reliable historical data series, ensuring compliance with the requirements of the PRIIPs Regulation in the selection of a proxy
4. Cost:
In the modelling, the expected costs of the fund must be taken into account as the reason why the fund is newly established. For the modelling, we have included the entry costs (includes start up cost and interest for the bridge loan), management fees and other ongoing costs (running costs – operation expenses, meetings and deal flow costs and administration, and relevant fees (compensation to the General Partner for assuming unlimited liability for the obligations of the Product)) , and carried interest that appear in your LPA if you exit after 10 years:
Total entry costs of EUR 141
Management fees and other ongoing costs EUR 765
Carried interest of EUR 20,408
The costs in the KID tables show the share of the costs that accrue to the investor in an investment example of EUR 10,000.
KEY INFORMATION DOCUMENT
PURPOSE
This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products.
PRODUCT
Product name and identifier: A-shares in Final Frontier Liftoff K/S, CVR-nr. 45093395
Product manufacturer: Final Frontier Management ApS, CVR-nr. 45057119
Website of manufacturer https://finalfrontier.vc/
Contact information: +45 29 89 14 04
Authorisation: Finanstilsynet
Last production date: 11 April 2025
Alert: You are about to purchase a product that is not simple and may be difficult to understand.
WHAT IS THIS PRODUCT?
Type
Final Frontier Liftoff K/S (the "Product") is an Alternative Investment Fund (AIF) structured as a limited partnership under Danish law, with its registered office in Denmark, managed by Final Frontier Management ApS (the "Manager"), with Final Frontier General Partner Liftoff ApS as general partner (the “General Partner”). The Product operates as a closed-ended fund, investing through minority ownership stake in companies that are based primarily in the Nordics and developing “defense-tech” and “space-tech” products, including any ancillary technologies, enabling technologies and other ancillary activities. Interim distributions may be made during the life of the Product, but only to the extent permitted by the financial performance of the underlying investments and prevailing market conditions. Consequently, investor returns depend primarily upon the successful exit from the investment at a value greater than the initial investment at the end of the realisation period. The product is classified in accordance with Article 6 of the SFDR.
Term
The Product has an investment period of one year and realization period of nine years, both extendable by one year with approval by the Limited Partner Advisory Committee (LPAC). Investors cannot redeem or withdraw their investment on demand during the term of the Product. Investors should therefore be prepared to hold their investment until the Product successfully realizes its underlying investment through an exit.
Objectives
The Product's objective is to maximize the Internal Rate of Return (IRR) by undertaking, monitoring, developing, and realizing investments primarily in defense-tech and space-tech companies in pre-seed and seed stages with high growth potential. The Manager aims to provide strategic advisory and commercial support to the portfolio companies, facilitating their growth and enhancing their value in preparation for a successful exit. The Product adheres to relevant international laws and conventions, ensuring that it does not invest in companies involved in prohibited activities such as the production or use of weapons of mass destruction. This commitment to ethical investing aligns the Product with global standards for responsible and sustainable practices.
Intended retail investor
The Product will accept investment commitments exclusively from investors classified as professional investors or semiprofessional investors who commit to investing a minimum of EUR 100,000. Semi-professional investors are considered retail investors under MiFID II regulations. Investors classified as semi-professional must explicitly confirm that they have thoroughly reviewed and understand the characteristics and associated risks of the Product, and acknowledge and accept a reduced level of investor protection.
WHAT ARE THE RISKS AND WHAT COULD I GET IN RETURN?
The summary risk indicator reflects the level of risk associated with this Product compared to other financial products. It illustrates the likelihood of the Product losing value due to market fluctuations or its inability to meet payment obligations.
The Manager has classified this Product as a 6 out of 7, indicating the secondhighest risk category. This classification implies a high probability of significant losses based on potential future performance. Please note that the risk classification may change over time and should not be considered a reliable indicator of the Product's future risk profile. The risk elements described herein are not exhaustive and you may incur additional risks associated with this investment.
The Product does not provide any protection against future market developments, meaning that you could lose some or all of your investment.
The risk indicator represents the level of risk associated with investing in a private equity fund, reflecting the inherently higher risk of investments in private, unlisted companies. Due to the concentrated nature of the Product's investments, the risk exposure is significantly greater compared to a more diversified investment.
Additionally, the Product is subject to several risks that may not be fully captured by the risk classification:
Liquidity Risks: There may be prolonged periods during which it is difficult to sell, list, or otherwise exit investments in portfolio companies. Delays or challenges in realizing exits can negatively impact returns and potentially lead to the write-down of investments.
Key Person Risks: The Product's performance is dependent on the skills and decisions of the Manager’s key personnel. The Product's success relies significantly on the Manager’s ability to maintain continuity.
Valuation Risks: The valuation of portfolio companies may be incorrect due to uncertainties in financial forecasts, incomplete or inaccurate data analysis, or market volatility, resulting in realizable exit values lower than estimated.
Performance Scenarios
This table illustrates the potential returns on your investment over a recommended holding period of 10 years, based on an example of an initial investment amount of EUR 10,000. The scenarios presented demonstrate possible outcomes of your investment under various market conditions, enabling you to compare these potential results with the performance scenarios of other investment products.
The figures shown include all costs related directly to the Product but exclude any fees paid to your advisor or distributor, and they do not reflect your personal tax situation, which could affect your returns. The stress scenario represents potential outcomes under extreme market conditions but does not consider circumstances where the Product may be unable to meet its obligations. The scenarios provided are estimates based on historical data from similar investments; they do not predict exact future performance, and your actual returns may differ based on market developments and your investment duration.
WHAT HAPPENS IF FINAL FRONTIER MANAGEMENT APS IS UNABLE TO MAKE PAYMENTS?
Your investment is made directly into the Product. The Manager operates independently in financial and legal terms, and solely administers the Product. Consequently, your investment is not dependent on the Manager's financial position or ability to repay.
Costs over Time
The table below shows the cumulative costs deducted from your investment upon exit after 10 years, assuming an initial investment of EUR 10,000. These costs vary according to the size of your investment, how long you hold the Product, and the Product’s performance. The Product has a recommended holding period of 10 years and cannot be redeemed early. The figures provided assume the Product performs in line with the moderate scenario and are estimates only; actual costs may differ in the future.
Composition of Costs
The table below illustrates:
How different types of costs impact the investment return you may receive at the end of recommended holding period, expressed annually, in the moderate scenario and
The significance of each cost category in terms of its effect on your overall returns.
HOW LONG SHOULD I HOLD IT, AND CAN I TAKE MONEY OUT EARLY?
Recommended investment period: 10 years
The Product is illiquid, and you cannot redeem your investment on demand. Any transfer of your investment to another investor requires prior approval from the General Partner, unless the transferee is an Associate of the transferor. If you exit your investment before the recommended holding period, your returns may be significantly lower than expected.
HOW CAN I COMPLAIN?
If you wish to file a complaint, contact Final Frontier Management ApS via email at: n@finalfrontier.vc or by phone at: +45 29 89 14 04.
OTHER RELEVANT INFORMATION
For complete details about this Product, including tax considerations and your legal rights as an investor, you should review the Product’s full Articles of Association, Limited Partnership Agreement, and Investment Policy. Copies of these documents can be provided upon request.