In 2024, Moonfare's Private Markets ELTIF Strategy will offer individual investors a simple, diversified and affordable approach to investing in private equity opportunities from top-tier managers.
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You'll invest alongside leading fund managers in a large number of successful companies from a portfolio of exclusive private equity funds and exciting co-investments.
Top-tier private equity managers invest in great companies, then make improvements to increase their value. The winning formula behind Airbnb, Hilton Hotels and Dell.
Private equity has historically achieved superior risk-adjusted returns than more well-known asset classes, such as public equity and fixed income.
Our selection of premier funds and direct co-investments creates diversification across company stages, sectors and geographies.
Publicly traded stocks, ETFs, mutual funds and bonds are only a fraction of investment opportunities. Most institutional investors and the ultra wealthy include private market investments in their portfolios to ‘seek alpha’ or market-beating returns.
Source: Hamilton Lane Private Market Investing: Staying Private Longer Leads to Opportunity (April 2022)
Diversification across strategies, geographies and industry sectors aims to mitigate risk while uncoupling from public markets smooths the ups and downs. An opportunity tailor-made for our times.
*Depicts number of funds as of October 2023 (including co-investments).
The difference between top and bottom performers is far more pronounced in private markets than in public ones.
This is why a thorough due diligence process is so important, and where Moonfare truly shines.
Public versus private manager performance dispersion
Based on returns over a 10-year period until 2023
Source: https://am.jpmorgan.com/us/en/asset-management/ adv/insights/market-insights/guide-to-alternatives/
*As of September 2023
Source: Moonfare, Wall Street Journal, Yahoo Finance
Note: As of September 2023, Silver Lake owns 26% of Dell Technologies. Silver Lake has been gradually decreasing its share since public listing of Dell Technologies in 2018.
Our curated portfolio provides you with unique exposure to a basket of leading global private equity fund managers and co-investments with high upside potential. Find out for yourself how this can complement your existing investments.
Download the AppWe source funds through our investment team's extensive network of GP relationships, along with the help of third-party sources such as PitchBook, Bain & Company and Preqin, as well as through online sources, banks and placement agents.
Moonfare's relationships with fund managers is perhaps our most valuable asset. Our investment committee, which includes Moonfare's most senior leaders, has a vast network of strong professional relationships, often built from working alongside or on opposite sides of transactions, with the most reputable fund managers.
Moonfare's team regularly connects with fund managers through direct communication, face-to-face meetings and regular update calls. Doing so reinforces our understanding of the manager’s fundraising schedule, objectives, evolution of their strategy and the portfolio performance and health. This also positions Moonfare as a strategic LP, which secures our access to some of the world’s most sought-after funds.
Investors qualify to invest with Moonfare if they meet certain criteria as per local regulation. Due to the nature of the funds we offer, Moonfare investments are available exclusively to “Accredited Investors” as defined in Rule 501(a) of the US Securities Act of 1933. Certain Moonfare products are only available to investors who also qualify as “Qualified Purchasers” under Section 2(a)(51) of the United States Investment Company Act of 1940
Generally speaking, our Venture Capital, Growth Equity and Buyout Portfolios focus on different stages of the underlying companies' development.
The Venture Capital Portfolio offers a diversified range of eight to 12 venture capital funds, which invest in emerging companies and start-ups with the potential for long-term growth. Typically, there are different stages of venture capital funding, from seed stage (when companies are still in the concept phase) until the last round of private funding before IPO.
Moonfare’s Growth Equity Portfolio targets companies that have reached an inflection point. This usually means they have established a proven business model, achieved substantial organic revenue growth and generally reached positive EBITDA — and now require further capital to scale. Moonfare’s Buyout Portfolio consists of buyout funds, which take majority ownership in mature companies with a proven history of positive cash flows and profitability.
As target companies of venture capital funds are typically still in the developmental stage, the asset class is higher risk when compared to growth equity and buyout. While the default rate on the individual companies is high, the overall fund performance is driven by a few outlier deals, the so-called 'home runs'.
Early start-up investments, when executed properly, can deliver superior investment returns over the long term. As such, venture capital has outperformed its peer alternative asset classes over multiple time horizons.
The minimum allocation for Moonfare funds starts at $75,000 for US investors. We leverage technology to provide lower minimums than usual, all while respecting requirements set by local regulations and our GPs.
The Moonfare Venture Capital Portfolio aims to allocate funds over a 12 to 18 month period to ensure diversification across sectors, geographies and fund stages.
Generally speaking, VC funds invest actively for three to four years and are locked in for about seven to ten years.
Once our investment team has carefully selected the underlying funds, Moonfare's Venture Capital Portfolio will be open to clients on a first-come first-serve basis. The target fundraise of the fund is $50m.
Our experienced team analyses hundreds of funds each year and only choose a handful — around 5%. We use our proprietary tools to ensure that each fund achieves the right risk-return profile for our investors.
Our team takes several factors into consideration, such as the manager and their team, investment strategy, performance history, terms and conditions, peer performance comparions, ESG factors and underlying investor base. This thorough due-diligence process helps us hand-pick opportunities that provide exceptional diversification and return potential.
¹ Moonfare (2020). “The J-Curve and Building a Self-Funding Private Equity Portfolio.”