Buyout funds (LBO) are one of the three main private equity strategies. GPs blend their investing savvy with operational know-how to build long-term value for their portfolio companies and investors.
Moonfare’s buyout portfolio is the perfect entrypoint for private equity investing — giving you access to a curated selection of top-tier buyout funds for one low-minimum investment.
Moonfare’s buyout portfolio is the logical entrypoint for private equity investing — giving you access to a curated selection of top-tier buyout funds for one low-minimum investment.
How does it work? Through our buyout portfolio, you indirectly invest in undervalued or underperforming companies and turn them around. The target result? A significant profit upon acquisition or IPO and historically-exceptional returns for investors.
Moonfare’s inaugural buyout portfolio (below) has been one of our most popular strategies — closing with €70 million of capital raised, 40 percent above its target.
The Moonfare buyout portfolio II is the next vintage in the series and targets 10 funds — comprising an entirely new selection of current and upcoming buyout-oriented strategies.
The Moonfare buyout portfolio II offers all the benefits of a fund of funds without the drawbacks. Like a fund of funds, it provides instant diversification with one ticket and helps allocate across multiple strategies with a lower minimum. The difference? You already know part of the portfolio composition upfront — unlike in a fund of funds. which usually has a blind-pool risk. Moreover, a fund of funds usually has an additional layer fee. In contrast, our buyout portfolio II invests alongside the feeders of the Moonfare direct offering — which means we don't need an additional feeder.
We will call 25 percent of your commitment two to four weeks after the relevant close. After you invest that 25 percent, we'll follow the capital call cadence of the underlying funds. Given the diversification in the portfolio and the administrative burden each call might pose, we aim to call on a quarterly basis. As a result, you should expect up to four calls a year.
The Moonfare buyout portfolio II aims to build a balanced and diversified portfolio by primarily investing in mid to large cap buyout private equity funds. There's also flexibility to invest in adjacent opportunities — including co-investment, turnaround and secondaries funds. You can also directly invest into operating companies. We identify the portfolio funds with the goal of offering investors long-term, attractive returns while balancing risk through diversification across geographies, fund managers and investment strategies. Buyout private equity funds, co-investment funds, turnaround and secondaries funds all offer unique features — complementing each other well in a portfolio.
No, the funds in the portfolio won't be sold once they have been subscribed.
Your investment will be denominated in EUR and its performance's reference currency will be EUR. When an underlying fund is USD denominated, Moonfare will not engage in any hedging activities. That means that the Moonfare fund and, ultimately, the investors, will bear any currency exchange risks.
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