The strategy is designed to provide eligible retail investors with access to global private equity investments through stakes in third-party private equity funds and co-investments.
Steffen Pauls, founder and CEO of Moonfare, said: “Today is an extremely important day in Moonfare’s history. Our mission has always been to democratise private equity and the ELTIF 2.0 regime allows us to open up the asset class for eligible retail investors.
“Now, more than ever, private investors have access to private equity through the Moonfare platform.”
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Pauls stressed the need to structure ELTIFs for eligible retail investors so that they perform well in comparison to other ways of accessing private markets, while also offering the necessary protection and education for retail investors.
“We have spent considerable time and resources creating a strategy based on the same institutional-grade investment opportunities as our existing platform, with the same level of due diligence, and with access to secondary liquidity,” he added.
Moonfare’s strategy will focus on buyout transactions in established and profitable companies, alongside some growth investments.
The firm said eligible retail investors will be able to invest alongside institutional investors and managers with a proven track record of significantly outperforming the S&P 500 in funds that usually have $10m minimum tickets. This ELTIF will have a minimum investment ticket size of €10,000.
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The fund-of-fund structure of the ELTIF will offer higher levels of diversification, the firm added, as well as potentially more stable returns.
Exposure will be diversified across sectors, geographies and managers, with more than 50 underlying companies in the portfolio.
Through its partnership with Lexington Partners, the ELTIF will offer a secondary liquidity mechanism to provide a potential path to liquidity before maturity. However, the firm stressed liquidity is not guaranteed.
Moonfare’s partnership with Lexington Partners provides a full-service liquidity offering to individual investors in private equity, allowing them to trade their fund stakes for cash in a formal process twice per year or, subject to certain conditions, on an ongoing basis.
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