Guide to Investing in Private Equity with Moonfare

Moonfare is a digital investment platform that brings private equity funds to the individual investor. Moonfare offers a range of private equity funds, including buyout funds, growth equity funds, and venture capital funds at low minimums and via a fast and user-friendly digital experience.

Founded in 2015 by Dr. Steffen Pauls and Alexander Argyros, Moonfare has raised over $175 million in funding from investors such as Insight Partners, Vitruvian Partners, and Fidelity International, and has over 3,300 investors and a total asset under management (AUM) of €2 billion.

With a low minimum investment of $75,000, a streamlined investment process, and a team of experienced investment professionals, Moonfare is a good option for investors and advisors who are looking for a more accessible, liquid, and transparent way to invest in private equity funds.

Background

When it comes to accessing private equity funds, traditionally, individuals would have to commit large amounts of capital and wait for returns that could take years to arrive. Moreover, investors would have to navigate a complex and costly process requiring multiple intermediaries and paperwork. Moonfare has emerged as an innovative solution to these challenges, allowing individuals to easily access top-tier private equity funds with low minimums and fees. The platform pools commitments from multiple investors into feeder funds that invest directly into underlying funds with specific strategies. Investors can choose between direct investments or portfolio investments to achieve instant diversification.

Moonfare also offers a low minimum investment of $75,000, making it more accessible to individual investors. There is no need for paperwork as the entire process is handled online. The platform also has a team of experienced investment professionals who ensure that only the best funds make it onto the platform. Less than five percent of the funds Moonfare researches meet their standards and make it onto the platform, thus ensuring that investors have access to top-tier funds with long track records of delivering excellent risk-adjusted returns.

Advantages

Moonfare offers the following advantages:

• Low minimum investment of $75,000
• Streamlined digital investment process
• A secondary market for private market funds
• A team of experienced investment professionals
• Pooling commitments from multiple investors into feeder funds
• Direct investments or portfolio investments for instant diversification
• Returns distributed over time
• Funds on the platform are carefully selected by experienced General Partners with long track records (under 5% acceptance rate)
• Investing is simple and handled online without paperwork

How it Works

Moonfare’s investment process is simple and straightforward. Investors need only to put down 25% upfront to get started with Moonfare, with the rest spread out over the fund's life cycle. The platform pools commitments from multiple investors into feeder funds that invest directly into underlying funds with specific strategies. Investors can choose between direct investments or portfolio investments to achieve instant diversification. The platform also offers a secondary market for private market funds, meaning that investors can buy and sell their allocations to funds on a secondary basis.

Competitors

Moonfare is not the only digital platform for investing in private equity funds. There are a number of other platforms, such as The Coaterie, EquityZen, Linqto, and Carta, which offer similar services. However, Moonfare stands out from the crowd due to its low minimum investment of $75,000, streamlined investment process, experienced leadership team, and access to the top-tier private equity and venture capital funds from firms like KKR, Carlyle, EQT and Insight Partners.

Conclusion

Moonfare has emerged as an innovative solution to the challenges of accessing private equity funds, allowing individuals to easily invest in top-tier funds with low minimums and fees. The platform pools commitments from multiple investors into feeder funds that invest directly into underlying funds with specific strategies, offering the choice between direct investments or portfolio investments for instant diversification. Furthermore, the platform also offers a secondary market for private market funds, providing investors with the opportunity to buy and sell their allocations to funds on a secondary basis.