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: • 3.0% of Total Exposure; OR • EUR 3k 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 3.0% on Total Exposure = EUR 2,730 Minimum Fee = EUR 3,000 Fee Charged: EUR 3,000 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 3.0% on Total Exposure = EUR 15,435 Minimum Fee = EUR 3,000 Fee Charged: EUR 15,435 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 and 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 where in its sole view that 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.

Invest in Moonfare's Semi-liquid, Open-ended Secondaries Fund

Secondaries provide investors access to private equity investments outside the traditional fundraising cycles and can add flexibility and diversification to investors’ portfolios.

Secondary transactions are often split between LP-led and GP-led: the nature of these transactions can differ significantly for levels of diversification, return expectation, transaction structure and parties involved
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What is the difference between LP-led and GP-led transactions?
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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, targeting 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, with the aim of generating additional value.

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