Moonfare and Lexington Partners launch digital secondary market for individual PE investors
Moonfare is bringing a full-service liquidity offering to individual investors in private equity, one of the most illiquid asset classes.
Lexington, one of the largest secondaries fund managers in the world, will participate in the Moonfare Secondary Market alongside interested Moonfare clients as a buyer of stakes in Moonfare funds. In a formal process twice per year or, subject to certain conditions, on an ongoing basis, Moonfare investors will be able to trade their fund stakes for cash.
The exclusive agreement with Lexington and improvements to the Moonfare Secondary Market benefit every investor on Moonfare’s platform. Across all asset classes, from publicly traded stocks to classically illiquid private equity positions, increasing liquidity improves the health and efficiency of the associated markets.
“We listened to the market, and illiquidity was one of the main concerns left standing between individual investors and allocations to private equity,” says Moonfare founder and CEO Dr. Steffen Pauls. “With this agreement, Moonfare has once again delivered a game changer to the private equity industry.”
“Our agreement with Lexington also confirms our obsession with fund selection,” adds Steffen. “Demand for our carefully chosen funds forms the basis of our new partnership with Lexington and everything we do.”
“We are excited to sign this partnership with Moonfare, which will make Lexington an important liquidity provider to individual investors, an underserved portion of the market,” says Pål Ristvedt from Lexington Partners. “Moonfare’s demonstrated track record in offering high-quality private equity funds was also a key driver of this agreement.”
At any time, Moonfare clients can indicate interest digitally on the platform to participate as a buyer or a seller in the Moonfare Secondary Market. Twice per year, in the spring and in the fall, Moonfare will conduct a formal process to collects bids digitally and endeavor to find the best liquidity solution possible for sellers.
In the event a Moonfare investor wishes to sell his or her fund stake outside of the liquidity process, Moonfare will work with the client to prepare an offer for Lexington to review.