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Investing

Who can invest?

Investors qualify to join Moonfare if they meet certain criteria based on local regulations — which may include a minimum financial instrument portfolio and sufficient prior investment experience. Due to the nature of funds we offer, Moonfare investments are available exclusively for: (i) Professional And Semi-Professional Investors Pursuant To Section 1 Para. 19 No. 32 and 33 KAGB (Germany); (ii) Professional Investors within the meaning of Annex II to Directive 2014/65/EU (EU); (iii) Certified High Net Worth Investors And Self-Certified Sophisticated Investors pursuant to COBS 4.12.6 R and COBS 4.12.8 R (UK); (iv) Qualified Investors Pursuant To Art. 10 Para. 3 CISA And Art. 6 CISO (Switzerland); (v) Qualified Private Investors within the meaning of the Austrian Alternative Investment Fund Managers Act (Austria); (vi) “Semi-professional Investors" pursuant to sec. 5(5) of the Danish Consolidated Act no. 1047 on Alternative Investment Fund Managers and Professional Investors within the meaning of Annex II to Directive 2014/65/EU (Denmark); (vii) accredited investors under Section 4A(1)(a) of the SFA (Singapore); (viii) 'wholesale client' within the meaning of the Corporations Act 2001 (Cth) (Australia); and (ix) Qualified Investors & Eligible Clients (Israel).

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

How does the typical Moonfare investment work?

Moonfare investment vehicles pool interest in individual private equity funds. Capital calls, capital distributions and fees are all paid through the Moonfare investment vehicle. We work with industry-leading partners such as Pandomus, Deloitte, Apex Service Partners and DocuSign to ensure the process is efficient and secure.

What's the minimum commitment?

The minimum allocation for Moonfare feeder funds usually starts at €50,000 for portfolio funds (and €100,000 for feeder funds), depending on where investors are located. We now offer the Moonfare Secondary Fund with a minimum allocation of €25,000, and the ELTIF with a minimum allocation of €10,000 (also dependant on jurisdiction). We leverage technology to provide lower minimums than usual, all while respecting requirements and regulations.

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.

When is capital drawn on my commitment?

Capital call schedules are determined by the underlying fund managers. In general, we structure our investments with a 25 percent upfront capital call. The remaining commitment will usually be drawn over the underlying fund's investment period, typically five to six years.

What's the selection process for the funds on Moonfare?

We screen the investments on our platform using in-depth due diligence and outside-in analysis. The Moonfare FiveStar Diligence Method outlines the criteria we look for — including fund managers’ track records, team and terms. While we only focus on top-quartile investments, we cannot guarantee future performance. For a more complete breakdown of our selection criteria, please get in touch.

What is a typical fund that Moonfare offers?

We only work with top-tier funds, pre-selected for quality. We typically offer funds raising capital in excess of $1 billion, with strong past performance and a track record of creating value for investors. The managers we feature on the Moonfare platform marry deep industry networks with operational excellence — enabling them to source quality deals and deliver consistent value.

What's Moonfare's typical hold period?

Each opportunity has its own investment horizon, but a typical private equity fund investment has a maturity of 10 years.

Secondary Market

How is the Net Asset Value (NAV) associated with a fund investment determined?

NAVs reflect the value of an investor’s stake in a private equity fund. Fund managers report NAV to their investors quarterly and according to strict valuation guidelines. The fund managers Moonfare works with are large organisations with significant investors, like life insurance companies and pension funds; they have high standards around accuracy and controlling the valuation process. Moonfare and our investors benefit from these high standards. The NAV reported to our investors additionally includes any potential cash reserves and liabilities of the feeder vehicles.

How are remaining capital commitments considered with respect to Net Asset Value (NAV)?

Buyers and sellers on the secondary market use NAV as a reference for pricing the stake involved in their transactions. The buyer assumes the obligation to meet the remaining capital commitments in full.

What kinds of fees should I expect?

Moonfare’s secondary market fees are:
• Payable only by the seller
• Payable only if a transaction is fully consummated (i.e. success-fee based)
• Based on the Total Exposure* of the fund commitment being sold, defined as the sum of:
• The net purchase price received; AND
• The unfunded commitment released
‍
*minimum fees apply (see below)

What is the fee amount?

Moonfare will charge the seller the higher of:
• 5.0% of Total Exposure; OR
• EUR 5k flat fee (minimum fee)

EXAMPLE I

Commitment: EUR 100,000
Contributed: EUR 25,000
NAV: EUR 20,000
Unfunded: EUR 75,000
Cash price: EUR 16,000 (80% of NAV)

Total exposure = EUR 91,000
5.0% on Total Exposure = EUR 4,550
Minimum fee = EUR 5,000

Fee charged: EUR 5,000 for transfer

EXAMPLE II

Commitment: EUR 500,000
Contributed: EUR 125,000
NAV: EUR 150,000
Unfunded: EUR 375,000
Cash price: EUR 139,500 (93% of NAV)

Total exposure = EUR 514,500
5.0% on Total Exposure = EUR 25,725
Minimum Fee = EUR 5,000
‍
Fee Charged: EUR 25,725 for transfer

Is my identity made public to other buyers or sellers?

It's necessary to disclose the identity of either transacting party to the respective counterparty when a transaction is executed — but not during the auction process.

Are secondary market transactions reversible or cancellable?

A transaction becomes legally-binding and irreversible once legal agreements have been executed by both buyer and seller. Prior to signing the agreement, either the buyer or seller can withdraw from the process.

When can I buy or sell interests?

A potential buyer or seller can indicate interest to participate in the Moonfare secondary market at any time via the Moonfare platform. Moonfare will conduct a structured auction process on a semi-annual basis, usually in the spring and fall each year, to facilitate transactions between buyers and sellers.

How are offers to buy and sell matched in the Moonfare secondary market auction?

Moonfare matches bids that emerge through the auction to provide sellers the best price available. Higher bids from buyers are filled first. In case of any remaining supply (i.e. stakes offered by sellers for auction), Moonfare will fill orders starting with the next highest price until all supply is sold — while respecting the seller’s reserve price.

The minimum transaction size between any buyer and seller is €100,000. In case of a stalemate between different offers to buy or sell, larger orders take preference.

Stakes offered for sale in the auction can only be sold in their entirety, either to one sole buyer or to several different buyers provided that the total original stake is sold in its entirety. Moonfare reserves the right, at its sole discretion and with a view to achieve the most favourable outcome for its existing investors and funds, to assign buyers and sellers provided the general auction rules are maintained. Moonfare reserves the right to cancel or abort any auction if the consummation of the transaction would not be beneficial to its investors, platform and/or partners.

When do transactions settle? When should I expect to send or receive funds?

Once a buyer and seller are matched, documents must be completed and funds transferred within the periods provided in the match notification. Moonfare will facilitate the execution of completed transfers once documents are approved and funding is confirmed from all participants.

When does my order become binding in the Moonfare secondary market auction?

Bids are binding upon the close of the auction. If you wish to change or cancel your bid, you may contact us before then.

Which entity is responsible for Moonfare's secondary market?

The secondary market is operated by Moonfare GmbH.

Legal

What are the risks of investing in a Moonfare fund?

Investments in alternative investment funds, and private equity investments via feeder funds in particular, are speculative and involve a high degree of risk. Investors who can't 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 on the platform. The value of an investment may decrease as well as increase and investors may not be able to retrieve their original investment. Past performance does not guarantee future performance. An investment in a fund or investment vehicle is not the same as a deposit with a banking institution. Please look to the respective fund documentation for details about potential risks, charges and expenses. 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 a part of your overall investment portfolio. The private equity portion of your portfolio may also 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.

Which fees will I need to pay when investing in a Moonfare fund?

For a detailed overview of our fees, please see the 'Fees' section on the respective fund page.

Will the Moonfare team give me investment advice?

No. For regulatory reasons, we can't advise individual clients on their specific investments. Please consult your investment advisor or consultant.

Taxes

Which types of income from Moonfare investments are taxable and how are they taxed?

When investing in a Moonfare fund, primarily the taxable income include: 

• Capital gains: Profits from the sale or redemption of investments.
• Dividends: Distributions from the investment, which may include profits earned by the funds.
• Other: This may include interest, or other types of income depending on the specific investments. 

Both dividends and capital gains may be subject to taxation. Generally, dividends are taxed as ordinary or special income, while capital gains may be taxed at different rates depending on the holding period and local tax laws.

The specific tax treatment of these incomes depends on your individual circumstances and the tax laws of your country of residence. For more information, refer to the country-specific tax guides section on the respective fund page.

Are the tax implications the same when investing as an individual, corporation or private office?

No, the tax obligations can differ based on the investor's legal status and type of income: 

• Individual investors are typically subject to personal income tax or wealth tax.
• Corporations are usually subject to corporate income tax or business tax.
• Private offices and other structures may have different tax considerations depending on their structure. 

For more information, refer to the country-specific tax guides section on the respective fund page. It is advisable to consult with your local tax professional to understand the specific tax obligations based on your legal status.

Do tax obligations vary for investors based on their country of residence?

Yes, tax obligations can vary significantly based on the investor's country of tax residence and in some cases also on the investor’s nationality. Different countries have varying tax laws and treaties that can affect how investments are taxed. For more information, refer to the country-specific tax guides section on the respective fund page.

It is advisable to consult with your local tax professional to understand your specific obligations based on your residency.

Do I need to pay taxes if I haven't received any distributions from the Moonfare Fund for a particular year?

Depending on the tax regulations of your country of tax residence, you may need to pay taxes on the income earned by the fund during the year, even if the said income has not been distributed to you. For more information, refer to the country-specific tax guides section on the respective fund page.

What documents will Moonfare provide to help with tax filings?

We provide various documents and information to help you gather the necessary details to file your taxes. These include quarterly investor reports, annual account statements, descriptions of income distributed in the distribution notices, and investor tax reporting. Please refer to the below for the expected delivery timelines.

When can I expect the documents/tax reports to be available each year?

COUNTRY

FINANCIAL YEAR

EXPECTED DELIVERY

DELIVERABLE

STATUS

Austria

2023

21 JUL 24

Investor Tax Reporting

Delivered

Belgium

2023

31 JUL 24

Investor Tax Reporting

Delivered

Germany

2022

15 JUL 24

Investor Tax Reporting (Ergebnismitteilung)

Delivered

Switzerland

2023

31 AUG 24

Investor Tax Reporting

Delivered

United Kingdom

2023

30 SEP 24

Investor Tax Reporting

Delivered

United States

2023

31 AUG 24

K-1 / K-1 Equivalent

Delivered

Austria

• Financial Year: 2023

• Expected Delivery: 21 JUL 24

• Deliverable: Investor Tax Reporting

• Status: Delivered 

Belgium

• Financial Year: 2023

• Expected Delivery: 31 JUL 24

• Deliverable: Investor Tax Reporting

• Status: Delivered

Germany

• Financial Year: 2022

• Expected Delivery: 21 JUL 24

• Deliverable: Investor Tax Reporting (Ergebnismitteilung)

• Status: Delivered

Switzerland

• Financial Year: 2023

• Expected Delivery: 31 AUG 24

• Deliverable: Investor Tax Reporting

• Status: Ongoing 

United Kingdom

• Financial Year: 2023

• Expected Delivery: 30 SEP 24

• Deliverable: Investor Tax Reporting

• Status: Ongoing 

United States

• Financial Year: 2023

• Expected Delivery: 31 AUG 24

• Deliverable: K-1 / K-1 Equivalent

• Status: Ongoing 

Note

• UK: Follows a tax year from 6 April 2023 to 5 April 2024; however, the tax reporting is prepared on a calendar year 2023 basis

• DE/US: Tax reporting is issued per feeder and not per investor

• AT: Tax reporting is issued per share class of a feeder and not per investor

• BE/CH/UK: Tax reporting is issued per investor covering all allocations/feeders

How can I obtain individual tax advice or information if I have specific questions about taxes on my investment in a Moonfare fund?

For legal reasons, Moonfare may not provide tax advice to clients on their specific investments. The information provided in these FAQs is for informational purposes only, does not purport to be and should not be construed as tax advice.

When analysing the applicable taxation of an investment in a Moonfare fund, each investor’s individual circumstances as well as applicable laws need to be considered. For specific tax advice, please consult your local tax advisor. If you have further questions about the documents provided by Moonfare, you can write to us at [email protected] or contact your Moonfare Relationship Manager for assistance.

Complaints

How does Moonfare handle complaints?

At Moonfare, we prioritize the satisfaction of our clients and aim to resolve any issues they encounter promptly.

Your complaints are important to us, and we take them very seriously while adhering to financial service regulations on transparency and consumer protection.

We commit to thoroughly investigating each complaint and working diligently to achieve your satisfaction with the resolution.

What is considered a complaint?

A complaint is defined as any expression of dissatisfaction or discontentment conveyed by a client, potential client, investor, partner, or service provider regarding a financial service or product provided by Moonfare.

It's important to note that the term "complaint" need not be explicitly stated, and complaints can take various forms. This definition encompasses grievances, criticisms, or claims for damages resulting from our services.

Where should I raise a complaint?

To file your complaint, it is best to contact us directly. This way, we can deal with your issue as soon as possible. Please file your complaint using our complaint form found HERE

When submitting your complaint, please provide as much information as possible, including:

• A clear description of the complaint and its impact,
• The date the issue occurred,
• Your preferred resolution,
• Supporting documents, e.g., screenshots,
‍
Note: If your complaint is raised through a representative, it must be accompanied by a notarized power of attorney form.

How long will the complaint process take?

Upon our receipt of your complaint, you'll receive a written acknowledgment of the complaint receipt and investigation initiation. This will additionally include the name and contact info of the person in charge of your complaint. If necessary, we may request additional information. For EU complaints, you will receive this confirmation no longer than 10 business days after complaint submission. For UK complaints, unless the complaint is resolved within 3 business days, you will receive this confirmation as soon as possible.

For EU complaints, after receipt of the complaint, you can expect a response from us within 1 month. For UK complaints, it could take up to 2 months. If we do not respond within this time, you will be informed of the causes of the delay and a new presumed answer date.
‍
If the complaint is resolved, we'll inform you of our position and available options.

To establish Moonfare's complaint-handling procedure and policy, we have considered the following legislation:‍

‍For EU (Luxembourgish legislation)
- CSSF Regulation Nr 16-07
- CSSF Regulation Nr 10-4
- CSSF Circular 17/671 of October 13, 2017
- CSSF Circular 18/698 of August 23rd, 2018
- 04/10/2018 JC 2018 35 Guidelines on complaints-handling for the securities (ESMA) and banking (EBA) sectors‍

‍For UK:
FCA Handbook: DISP 1.1A Complaints handling requirements for MiFID complaints

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Taxes

Which types of income from Moonfare investments are taxable and how are they taxed?

Are the tax implications the same when investing as an individual, corporation or private office?

Do tax obligations vary for investors based on their country of residence?

Do I need to pay taxes if I haven't received any distributions from the Moonfare Fund for a particular year?

What documents will Moonfare provide to help with tax filings?

When can I expect the documents/tax reports to be available each year?

COUNTRY

FINANCIAL YEAR

EXPECTED DELIVERY

DELIVERABLE

STATUS

Austria

2023

21 JUL 24

Investor Tax Reporting

Delivered

Belgium

2023

31 JUL 24

Investor Tax Reporting

Delivered

Germany

2022

15 JUL 24

Investor Tax Reporting (Ergebnismitteilung)

Delivered

Switzerland

2023

31 AUG 24

Investor Tax Reporting

Delivered

United Kingdom

2023

30 SEP 24

Investor Tax Reporting

Delivered

United States

2023

31 AUG 24

K-1 / K-1 Equivalent

Delivered

Austria

• Financial Year: 2023

• Expected Delivery: 21 JUL 24

• Deliverable: Investor Tax Reporting

• Status: Delivered 

Belgium

• Financial Year: 2023

• Expected Delivery: 31 JUL 24

• Deliverable: Investor Tax Reporting

• Status: Delivered

Germany

• Financial Year: 2022

• Expected Delivery: 21 JUL 24

• Deliverable: Investor Tax Reporting (Ergebnismitteilung)

• Status: Delivered

Switzerland

• Financial Year: 2023

• Expected Delivery: 31 AUG 24

• Deliverable: Investor Tax Reporting

• Status: Ongoing 

United Kingdom

• Financial Year: 2023

• Expected Delivery: 30 SEP 24

• Deliverable: Investor Tax Reporting

• Status: Ongoing 

United States

• Financial Year: 2023

• Expected Delivery: 31 AUG 24

• Deliverable: K-1 / K-1 Equivalent

• Status: Ongoing 

Note

• UK: Follows a tax year from 6 April 2023 to 5 April 2024; however, the tax reporting is prepared on a calendar year 2023 basis

• DE/US: Tax reporting is issued per feeder and not per investor

• AT: Tax reporting is issued per share class of a feeder and not per investor

• BE/CH/UK: Tax reporting is issued per investor covering all allocations/feeders

How can I obtain individual tax advice or information if I have specific questions about taxes on my investment in a Moonfare fund?

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Investing

Who can invest?

How does the typical Moonfare investment work?

What's the minimum commitment?

When is capital drawn on my commitment?

What's the selection process for the funds on Moonfare?

What is a typical fund that Moonfare offers?

What's Moonfare's typical hold period?

Each opportunity has its own investment horizon, but a typical private equity fund investment has a maturity of 10 years.

Load more articles

Secondary Market

How is the Net Asset Value (NAV) associated with a fund investment determined?

How are remaining capital commitments considered with respect to Net Asset Value (NAV)?

What kinds of fees should I expect?

What is the fee amount?

Is my identity made public to other buyers or sellers?

It's necessary to disclose the identity of either transacting party to the respective counterparty when a transaction is executed — but not during the auction process.

Are secondary market transactions reversible or cancellable?

When can I buy or sell interests?

How are offers to buy and sell matched in the Moonfare secondary market auction?

When do transactions settle? When should I expect to send or receive funds?

When does my order become binding in the Moonfare secondary market auction?

Bids are binding upon the close of the auction. If you wish to change or cancel your bid, you may contact us before then.

Which entity is responsible for Moonfare's secondary market?

The secondary market is operated by Moonfare GmbH.

Load more articles

Legal

What are the risks of investing in a Moonfare fund?

Which fees will I need to pay when investing in a Moonfare fund?

For a detailed overview of our fees, please see the 'Fees' section on the respective fund page.

Will the Moonfare team give me investment advice?

No. For regulatory reasons, we can't advise individual clients on their specific investments. Please consult your investment advisor or consultant.

Load more articles

Complaints

How does Moonfare handle complaints?

What is considered a complaint?

Where should I raise a complaint?

How long will the complaint process take?

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Investing

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Taxes

Investing

Secondary Market

Legal

Complaints

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DISCOVER

New Private Markets ELTIF Strategy

WHITE PAPER

Private equity secondaries in 2024

IN THE NEWS

CityWire

Frequently asked questions

Investing

Secondary Market

Legal

Taxes

Complaints

Taxes

Investing

Secondary Market

Legal

Complaints

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