White paper
Moonfare, the leading digital investment platform for top-tier private markets funds, is launching a second vintage of its flagship Buyout Portfolio to build on the success of the portfolio franchise it launched in 2020.
BERLIN, June 8, 2021 — Moonfare, the leading digital investment platform for top-tier private markets funds, is launching a second vintage of its flagship Buyout Portfolio to build on the success of the portfolio franchise it launched in 2020.
Moonfare Buyout Portfolio I, a core part of Moonfare’s efforts to put top private equity funds within reach of individual investors, closed in May oversubscribed and performed strongly across key metrics. The fund raised a total of €70m, 40% above its original €50m target.
Investor capital will flow to nine underlying funds focused on the buyout space. The portfolio includes funds running leading buyout strategies like EQT IX, KKR Asian Fund IV, CD&R Fund XI and Genstar Fund X. The portfolio also includes more tactical additions, like Ares Corporate Opportunities Fund V and Alpinvest Co-Investment Fund VIII, along with a leading secondaries fund and leading US healthcare buyout fund.
Connecting top fund managers with individuals in a fully digital and diversified fashion
“If you look at the fund managers in our first Moonfare Buyout Portfolio, you are looking at something like a private equity hall of fame,” says Moonfare founder and CEO Dr. Steffen Pauls. “Connecting managers like these with individual investors — in a fully digital and diversified fashion, no less — is what Moonfare is all about.”
“We do not see anyone else in the market offering individual investors funds of this caliber with minimums as low as ours,” Steffen adds.
At close, 425 Moonfare clients invested in Buyout Portfolio I, seizing the chance to access top private equity funds from minimums as low as €50,000. Among the investor group, 336 or 79%, were first-time Moonfare investors. Investors on average allocated almost €165,000 each to Buyout Portfolio I.
Introducing the newest vintage of the Moonfare Buyout Portfolio
Targeting €100m, Moonfare Buyout Portfolio II will build upon the success of the inaugural vintage by offering a portfolio of top funds diversified across geographies, fund managers and investment strategies with the same low minimums.
On top of the usual benefits of portfolio investing – like returns that do not hinge on a single manager or asset’s performance – investors in the Buyout Portfolio also enjoy reduced cash outlay. Early distributions from some funds have the potential to offset later capital calls from others.
Buyout Portfolio investors also leverage the expertise and experience of the Moonfare investment team and Investment Committee.
Steffen Pauls, Managing Director Magnus Grufman, Chief Investment Officer Winson Ng, Investment Director Sweta Chattopadhyay and Investment Committee member David Lindstrom represent a combined 85 years of experience in the private equity industry, covering more than 425 commitments to private markets funds worth more than €35 billion total.
Moonfare Buyout Portfolio II is open to accredited Moonfare investors now and will continue fundraising through 2022 or until it is fully subscribed.
About the Moonfare Buyout Portfolio
For decades, private equity and especially private equity buyout funds have provided an attractive albeit difficult to access opportunity for investors.
Over the past 20 years, private equity has significantly outperformed public markets, achieving annual net returns of 11.3% compared to 7.8% from the S&P 500, according to private markets advisory Cambridge Associates.
But dispersion among private equity managers' performances means that picking the right strategies can increase outperformance even further.
Since 2000, strategies offered on the Moonfare platform have delivered a median net internal rate of return of 19%. This obsession with quality lays the groundwork for the Buyout Portfolio.
Moonfare’s thorough due diligence and fund selection process ensures that the portfolio will only target top-tier funds. Moonfare actively covers more than 150 private equity fund managers through personal and institutional relationships established over decades.
The Moonfare investment team sources well over 300 eligible opportunities per year through its coverage activities and inbound offers but only invests in a small subset of these funds, concentrating in the highest-quality opportunities.
By fully digitizing the investment process and pooling capital from individual investors, Moonfare has been able to considerably improve the investor experience and lower barriers to entry, giving many individual investors access to private equity funds for the first time.
Compared with other similar investment opportunities, like funds of funds, the Buyout Portfolio offers investors both diversification and a pure-play approach to the buyout space. Each fund in the portfolio must independently pass Moonfare’s due diligence process.
Important notice: This content is for informational purposes only. Moonfare does not provide investment advice. You should not construe any information or other material provided as legal, tax, investment, financial, or other advice. If you are unsure about anything, you should seek financial advice from an authorised advisor. Past performance is not a reliable guide to future returns. Don’t invest unless you’re prepared to lose all the money you invest. Private equity is a high-risk investment and you are unlikely to be protected if something goes wrong. Subject to eligibility. Please see https://www.moonfare.com/disclaimers.
Benefit from what institutional investors already know: the greatest shareholder value comes from private markets, and funds like those offered on Moonfare have generated an average IRR of 19% — outperforming the S&P 500 by 13%.*
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* Past performance is no guarantee of future returns.
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