Moonfare continues to expand at accelerating pace, doubling assets in less than a year to €2 billion AuM and surpassing 40,000 registered users.
BERLIN, July 7, 2022 — In less than a year, Moonfare, the global leading private equity investment platform, has doubled assets under management surpassing €2 billion. Simultaneously the company has grown its global community of like-minded investors to over 40,000 users.
After less than five years, Moonfare has become the world's leading digital private equity investing platform, growing exponentially year on year. The Berlin-based FinTech is disrupting private market investing by opening access to leading private equity funds for qualified investors and their advisors at low minimums (starting at around $125.000). Moonfare’s rapid growth underlines the rising trend of “Private Equity goes Retail”. This phenomenon continues to gain momentum as investors are looking to alternative assets for portfolio diversification and to benefit from PE’s record returns,¹ ². Fund managers too are looking to tap into the private capital pool of individual investors in order to diversify their revenue base.³
“There’s something really exciting happening in private markets. Many regard the democratization of private equity as one of the largest disruptions in financial history and I personally think this is true”, says Steffen Pauls, CEO and Founder of Moofare. “Moonfare’s ongoing growth demonstrates this shift. We are grateful and proud that we have reached this important milestone of €2 billion AuM earlier than we anticipated and have again managed to double assets in less than a year, especially in light of the current market situation. We will be continuing down this growth path. Just last week we opened our 7th global office in Zurich with more to come soon including Moonfare’s expansion into Israel and beyond.”
According to consulting firm Oliver Wyman, individuals are expected to allocate additional $1.5 trillion to private markets in the next years to 2025⁴. This development may be accelerated by the current volatility of public markets. Most recently, markets have been characterized by three factors: surging inflation, rising interest rates and geopolitical challenges. In this new environment, investors who opt for a balanced portfolio and diversify as broadly as possible into assets such as private equity, stand the best chance of continuing to generate high returns as earlier recessions have demonstrated. Studies show that PE’s highest returns tend to follow economic downturns. In fact, research indicates that in the 2008 financial crisis the private equity model was resilient and flexible, with access to sufficient capital even in times of recession.⁵
“Data shows that recession-era vintages are indeed among the best performing. In fact, the 2001 vintage has been one of the best performing vintages over the last 20 years, according to PitchBook.⁶ The more recent 2008-2009 vintages of the GFC also performed significantly better than the years preceding the financial crisis,” says Steffen Pauls. “Currently, PE firms are sitting on huge amounts of dry powder to deploy. In February, Preqin estimated the amount to be a near-record of $1.78 trillion.⁷ What is needed now are managers with many years of experience, who have already been through downturn cycles and have a proven ability and the resources at hand to create organic value, not only in booms but also in recessionary periods.”
Moonfare works with fund managers with strong, consistent track records and high-quality investment and operational teams. Moonfare’s investment team conducts ground-up due diligence on all funds. Out of over 200 funds screened on a yearly basis fewer than 5% of available funds pass this process and make it onto the Moonfare platform. This unique focus on quality and a proprietary due diligence framework is one of the reasons why Moonfare has won the trust of more than 40,000 users globally.
For more information on how private equity as an asset class can benefit from economic downturns see the Moonfare webinar with Steffen Pauls, CEO and Founder of Moonfare.
About Moonfare
Moonfare offers individual investors and their advisors access to top-tier private equity investment opportunities for the first time. With a digital onboarding process and asset management platform, Moonfare allows clients to register and invest in as little as 15 minutes. To date, Moonfare has offered over 55 private market funds from top general partners worldwide with an emphasis on private equity buyouts, venture, growth, and real asset categories such as infrastructure.
Moonfare’s investment team conducts ground-up due diligence on all funds. Fewer than 5% of available funds pass this process and make it onto the Moonfare platform. This focus on quality is one reason why Moonfare has won the trust of more than 3,000 clients who have invested more than €2 billion on its platform. Headquartered in Berlin, Moonfare operates in 23 countries across Europe, Asia, America and has offices in New York, Hong Kong, London, Luxembourg, Singapore and Zürich with more to open soon.
Media Contact
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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.
¹ 2021 Annual European PE Breakdown | PitchBook
² Research and Consulting for Alternative Asset Managers in… | Cerulli
³ Private markets have grown exponentially | The Economist
⁴ Competing For Growth (oliverwyman.com)
⁵ How private equity will respond to the next economic downturn | EY - Global
⁶ PitchBook_Benchmarks_as_of_Q3_2021_with_preliminary_Q4_2021_data_Global.pdf
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