Moonfare pools funds from private investors into feeder funds which are then used to invest directy into underlying PE funds. This is how they have made investing in private equity accessible with only 25% due upfront and the rest spread out over the funds lifecycle. Moonfare conduct due diligence on each fund manager they appoint.
It’s important to note that there are no tax wrappers available at Moonfare such as an ISA.
#1. Direct private equity fund investment
Private equity fund investments were out of reach for people except for family offices, institutional investors, and the ultra-wealthy. But Moonfare opened the niche up by giving access to private investors. Direct funds allow investors to pick and choose the funds that meet their objectives.
These funds have historically generated returns that average IRR of 19% since 1999, which outperforms the S&P 500 by 13 percent. The typical investment period for one of these funds is 7 to 10 years with your commitment spread out over the lifecycle of the fund.
#2. Portfolio funds
This product cuts across regions, wealth managers and investment strategies. These invest in a collection of funds which provides instant diversification. Portfolio styles available on Moonfare are:
The perfect entry point for private equity investing is Moonfare’s buyout portfolio. It allows individuals to select top-tier buyout funds for one low-minimum investment.
Retail investors and individuals with good net worth are looking for alternative investments to benefit from high returns. And there is a high return on the venture capital.
This invests in companies that can demonstrate proven business models with plans to use the additional capital to scale up into new markets, launch new products, or enhance existing business models to increase profitability.
#3. Secondary market
The secondary market at Moonfare is held semi-annually by digital auction. This enables investors to sell their existing Moonfare allocations to other members, or Moonfares institutional parnet, Lexington Capital.
