Faster distributions
Secondaries funds invest later in an asset’s life cycle, resulting in potentially faster distributions than traditional private equity.
Immediate diversification
Invest in a multitude of underlying companies across different geographies, sectors and vintages.
Invest alongside experts
With extensive secondaries experience and access to high-quality fund managers, our team only targets top-tier deals.
¹ Steady returns and a shorter J-curve are aimed for, but not guaranteed.
Steady returns with
potentially less volatility.
potentially less volatility.
Median returns from secondaries have outperformed those of all other alternative asset classes, and with significantly lower return dispersion.2
Strong returns across quartiles
Net IRR dispersion, vintage years 2000-2019
Net IRR dispersion, vintage years 2000-2019
5%-25%
2nd Quartile
Median
3rd Quartile
75%-95%
Source: Cambridge Associates, Bain & Company | Note: As of Q2 2023
2 Past performance is not indicative of future returns
2 Past performance is not indicative of future returns
Our unique approach to secondaries
Our secondaries strategy seeks to generate lower risk, shorter duration returns compared to traditional private equity, while capitalising on our long-standing relationships with top-tier fund managers.
Deal type
Balance of diverse secondary LP portfolios and GP-led continuation vehicles.
Geography
Global exposure with a focus on North America and Europe.
Underlying investment type
Emphasis on buyouts with exposure to a range of other asset classes.
Secondaries in action:
Project Athena
Project Athena
Learn how Moonfare’s secondaries strategy works in practice through a real-world example.
The company
US-based "Athena" helps thousands of the world's leading brands better understand their consumers so they can unlock business growth and outpace the competition.
Why we like it
"Athena" became a market leader through superior technology, advanced analytics and cross-industry data. It has a diverse customer base, resulting in low churn and high revenue retention.
The Deal
Structured as a GP-led secondary transaction, Moonfare invested in the single asset continuation vehicle managed by a leading U.S. middle-market private equity firm.
Moonfare’s Edge
We sourced the deal through existing relationships with top-tier intermediaries who coordinated the transaction, while tapping into our network to inform the investment process.
Matching secondaries with the flexibility of a semi-liquid, open-ended fund.
Our secondaries strategy combines simplicity with diversified exposure, all through a single ticket.
Easier to manage
Commitments are paid upfront, and investors don’t have to keep track of multiple capital calls and distribution notices.
Compounding effect
Secondaries returns have the potential to be reinvested sooner in a semi-liquid, open-ended fund, which could lead to greater compounded growth.
Inherent liquidity
Semi-liquid, open-ended funds may provide investors with greater liquidity compared to traditional closed-end funds.³
³ Liquidity is not guaranteed. Redemptions are not guaranteed, may not be eligible to all investors and are subject to demand and to Board approval.
Meet the people behind the scenes
Combined years PE experience
0+Return on capital
0xTransactions
€0bn+A closer look at
secondaries
secondaries
Private equity secondaries involve selling or buying individual assets or portfolios of investments before the end of the fund's cycle. In a nutshell, secondaries come in two forms:
LP-led transactions
allow existing investors or limited partners (LPs) to sell their stakes to other LPs, typically at a discount to the initial purchase price.
GP-led transactions
involve fund managers or general partners (GPs) forming a ‘continuation’ vehicle, where they roll over their best assets. This allows them to create additional value and benefit from future upside.
Learn the ins and outs of private equity secondaries.
Boosted by rising demand for liquidity and portfolio management tools, plus growing investor interest, the secondaries market has grown strongly over the past few years. ⁴,⁵ And the stage is set for further expansion.
4 https://www.jefferies.com/wp-content/uploads/sites/4/2024/01/Jefferies-Global-Secondary-Market-Review-January-2024.pdf
5 https://www.lazard.com/research-insights/lazard-2023-secondary-market-report
Resources
Moonfare’s investment team has compiled several of our benchmark white papers, articles and other resources for your review.
Frequently asked questions
What are secondaries? And what is the difference between LP-led and GP-led transactions?
- Secondaries provide investors access to private equity investments outside the traditional fundraising cycles and add flexibility and diversification to investors’ portfolios. Secondary transactions are split between LP-led and GP-led:
- LP-leds refer to the purchase of a (typically mature) LP interest in a single fund, multiple funds or entire portfolios, allowing to achieve significant diversification by gaining exposure to a wide variety of industries, sectors and GPs.
- GP-leds refer to an investment into a special purpose single or multi-asset continuation vehicle set up by a GP to have more time and capital to grow the underlying asset and to generate additional value.
What are the benefits of secondaries?
A mix of LP-led and GP-led secondaries offers investors diversified exposure across GPs, sectors, geographies and vintages. Secondaries have a unique cash flow and return profile, offering the potential for faster distributions and resulting in a possibly mitigated J-curve. Additionally, when investing in secondaries, investors buy into defined assets, mitigating blind pool risk in the case of LP-leds or fully eliminating blind pool risk in the case of GP-led transactions. Finally, secondaries typically allow investors to acquire assets at a discount to NAV, resulting in an immediate uptick in valuation.
What differentiates Moonfare Secondary Strategy?
Our Secondary strategy aims to combine diversification and efficient exposure with simplicity of use and greater liquidity. By combining the return profile of secondaries with an evergreen structure, we aim to offer a product that is easier to manage, offers broad diversification, benefits from the compounding effect of earlier secondary distributions and offers greater flexibility and liquidity compared to traditional closed-ended funds
How do you select the underlying assets? What does your asset allocation look like?
Moonfare’s Secondary Strategy aims to build a well-diversified portfolio by primarily investing in a balance of LP-led and GP-led transactions, maintaining global exposure with a focus on North America and Western Europe, and diversifying across underlying asset classes with an emphasis on buyouts.
How does my investment in Moonfare Secondary Strategy work?
We will call 100% of your commitment upfront, allowing you to gain immediate exposure to Private Markets via one single contribution. Distributions will be automatically re-invested offering you compounding benefits and potentially accelerated NAV growth over time, as well as an efficient and simple investment experience.
What is the minimum investment?
The minimum investment in Moonfare’s Secondary Strategy starts at $25,000.
We leverage technology to provide lower minimums than usual, all while respecting requirements and regulations.
Investment minimums depend on where investors are located and on the relevant jurisdiction.
When can I invest and when can I redeem my investment?
- You will be able to invest in Moonfare’s Secondary Strategy on a monthly basis. LPs will have the option to redeem, with the consent of the GP, up to a certain percentage of the total fund NAV on a quarterly basis after the expiry of a determined lock-up period1.
- Liquidity and redemptions are not guaranteed, are subject to conditions and may not be eligible to all investors.
About Moonfare
Moonfare aims to lead a new era of private equity investing by creating the opportunity for higher returns for more people. We are building the world's most engaged investor community to inspire investments that drive the world forward.
Important information
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. 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. 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. 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.
In the United States, securities products and services are offered through Moonfare Securities USA, LLC (“Moonfare Securities”). Moonfare Securities is a registered broker-dealer (brokercheck.finra.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).
- 1 Minimum investment may vary by country and local regulation.
- 2 Source: McKinsey "Private Markets Annual Review 2022"
- 3 Past performance is no guarantee of future returns.