Moonfare reaches EUR1bn AUM driven by ‘private markets go retail’ phenomenon
Private equity investment platform Moonfare has surpassed EUR1 billion assets under management, a critical milestone for the company. It took just under three years to raise the first EUR500 million and then only eight months to double that amount.
Global wealth management faces disruption as private markets open access for individual investors. Private markets investments – such as private equity and venture capital funds – are seeing massive inflows as investors are looking for yield and inflation protection.
Affluent individual investors are increasingly demanding access to private asset classes that were previously only accessible to institutions.
According to consulting firm Oliver Wyman, individuals are expected to allocate an additional USD1.5 trillion to private markets by 2025.
Moonfare was founded by former KKR Managing Director Dr Steffen Pauls with the mission to provide access for individual investors to top-tier private equity at low minimums via a fast and easy-to-use digital experience. The platform has been enthusiastically adopted by investors seeking extraordinary returns. In the first week of September 2021, the firm passed the milestone of €1 billion assets under management, making it the clear leader in its field in Europe and Asia.
Leadership position based on differentiated strategy and scalable platform Moonfare’s success is based on a number of factors that set the company apart and enable it to scale globally:
• Broad asset class coverage with careful selection of top-performing funds. In private markets, manager selection is key to success. Moonfare’s highly qualified investment team conducts an extremely thorough due diligence and the investment committee (consisting of industry veterans like David Lindstrom and Winson Ng) selects only a small percentage of covered funds. The final offering of funds is recognised as unique in terms of both quality and breadth.
• Ambitious international market expansion. Moonfare operates in 13 countries across Europe and Asia, giving the platform a strong lead in terms of geographic coverage. It is also the only platform that directly transacts with individual investors (B2C) and partners with banks and other advisors (B2B and B2B2C). With regard to the latter, Moonfare has not only partnered with over 50 institutional B2B players (banks, wealth managers and family offices), but also serves institutional and wholesale clients in Europe through its exclusive partnership with Fidelity International.
• Scalable platform with unique features. The Moonfare engineering team has developed an automated platform to provide a seamless user experience and facilitate further exponential growth. Among
the many unique features, the Moonfare Secondary Market stands out. In partnership with Lexington Partners – one of the largest institutional secondary players globally – the platform allows investors to sell their existing stakes, bringing liquidity to traditionally illiquid asset classes and removing a key obstacle to investing for individuals.
“Today’s milestone not only proves that there is strong demand for private markets investment by private individuals, but also demonstrates the size of the opportunity ahead,” says Moonfare founder and CEO Dr. Steffen Pauls. “Our digital platform is built for scale. As we grow in size, the value we create for investors increases. We will continue to select only the very best investments for our platform and focus on the user experience.”