Important disclaimers

Investments offered by Moonfare involve a high degree of risk and may result in partial or total loss of your investment. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. Moonfare products are restricted to qualified investors who have sufficient knowledge and experience to understand the risks of investing.

Investments offered by Moonfare are illiquid and there is no guarantee that you will be able to exit your investments early. Additionally, investors will typically receive illiquid and/or restricted membership interests that may be subject to holding period requirements and/or liquidity concerns. In the most sensible investment strategy for private equity investing, private equity should only be part of your overall investment portfolio. Further, the private equity portion of your portfolio may include a balanced portfolio of different private equity funds. Investments in private equity are highly illiquid and those investors who cannot hold an investment for the long term (at least 10 years) should not invest.

Any securities offering is private and you will be required to verify your status as an ”Accredited Investor” and, for certain products, as a “Qualified Purchaser” to participate. No securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through us. Please refer to the respective fund documentation and private placement memorandum for additional information and disclaimers.

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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.

What are the key risks?

1. You could lose all the money you invest

• If the business offering this investment fails, there is a high risk that you will lose all your money. Businesses like this often fail as they usually use risky investment strategies.

• Advertised rates of return aren’t guaranteed. This is not a savings account. If the issuer doesn’t pay you back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher risk of losing your money. If it looks too good to be true, it probably is.

• These investments are very occasionally held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.

2. You are unlikely to be protected if something goes wrong

The Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover investments in unregulated collective investment schemes. You may be able to claim if you received regulated advice to invest in one, and the adviser has since failed. Try the FSCS investment protection checker here.

The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm. Learn more about FOS protection here.

3. You are unlikely to get your money back quickly

• This type of business could face cash-flow problems that delay payments to investors. It could also fail altogether and be unable to repay any of the money owed to you.

• You are unlikely to be able to cash in your investment early by selling your investment. In the rare circumstances where it is possible to sell your investment in a ‘secondary market’, you may not find a buyer at the price you are willing to sell.

• You may have to pay exit fees or additional charges to take any money out of your investment early.

4. This is a complex investment

• This kind of investment has a complex structure based on other risky investments, which makes it difficult for the investor to know where their money is going.

• This makes it difficult to predict how risky the investment is, but it will most likely be high.

• You may wish to get financial advice before deciding to invest.

5. Don’t put all your eggs in one basket

• Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.

• A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about unregulated collective investment schemes (UCIS), visit the FCA’s website here.

Past performance is no guarantee of future returns. The CA US Private Equity (PE) Index is sourced from Cambridge Associates’ Q4 2020 “Index and Selected Benchmark Statistics” report. The Cambridge Associates Private Equity Index is a pooled horizon IRR calculation based on quarterly data compiled from over 8,300 private equity funds, including fully liquidated partnerships, formed between 1986 and 2020. S&P 500 Total Return Index as sourced from Yahoo Finance. S&P 500 TR Index data are annual compounded return calculations which are time weighted measures and are shown for reference and directional purposes only. The CA PE Index is not an investable index and is used solely for illustrative purposes. The CA PE Index includes only Buyout and Growth Equity funds which are similar to the investment opportunities currently offered by Moonfare. Due to the fundamental differences between the two calculations, direct comparison of IRRs to time weighted returns is not recommended. The chart shows the net growth of a $100 hypothetical initial investment in the referenced indexes on December 31, 1999. Index data does not include the effect of Moonfare’s feeder fees, that are levied on top of the private equity funds offered and are estimated to decrease their net returns by c. 2.3% on an annual basis.

Moonfare does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. No material provided by Moonfare is intended to address the financial objectives, situation or specific needs of any individual investor. Alternative investments in private placements, and private equity investments via feeder funds in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Prospective investors should carefully consider the risk warnings and disclosures for the respective fund or investment vehicle set out therein. Information provided by Moonfare is subject to change, may be incomplete, and has been obtained from sources believed to be reliable, but not guaranteed. Moonfare assumes no liability for the information provided. The value of an investment may go down as well as up and investors may not get back their money originally invested. Past performance is not necessarily a guide to future performance. An investment in a fund or investment vehicle is not the same as a deposit with a banking institution. Please refer to the respective fund documentation for details about potential risks, charges and expenses.

Within the European Union, Moonfare GmbH and its registered employees are acting as so-called “tied agents” within the meaning of sec. 2 para. 10 of the German Banking Act (Kreditwesengesetz - KWG) in the name, on account and under the liability of Fondsdepot Bank GmbH.

In the United Kingdom (UK), Moonfare UK Ltd. (FRN: 947638) is an appointed representative of Khepri Advisers Limited (FRN: 692447) which is authorised and regulated by the Financial Conduct Authority.

In the United States, securities products and services are offered through Moonfare Securities USA, LLC (“Moonfare Securities”). Moonfare Securities is a registered broker-dealer (finra.brokercheck.org) with the United States Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority, Inc. (www.finra.org) and the Securities Investor Protection Corporation (www.sipc.org).

In Singapore, the platform is operated under the supervision of Moonfare Singapore Pte. Ltd. (135 Cecil Street #10-01 Philippine Airlines Building, Singapore 069536), an affiliate of Moonfare GmbH, and licensed under the Securities and Futures Act (license no. CMS101201) to conduct the regulated activity of dealing in capital markets products.

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