Moonfare’s newly-launched software interface allows investment platforms and other fintechs to diversify their product offering with alternative assets.
Moonfare’s direct API integration gives partners the opportunity to tap into the growing group of wealthier individual investors who seek exposure to private equity, venture capital and other highly sought-after alternative strategies. Moonfare ensures complete regulatory compliance with local law, rapid technical implementation, global reach and top-notch customer support, while partners retain their own visual user experience and communication.
“The API makes private equity more accessible than ever,” says Simon Bär, Moonfare’s product lead for partnerships, who is heading the API development efforts. He adds: “The solution will help financial service providers monetise their high net worth clients and, in turn, open new revenue streams for their business. Clients, on the other hand, will get access to a lucrative asset class.”
Raisin opens access to private equity
The API is part of Moonfare's digital toolbox that provides fintechs with easy access to private equity opportunities that they can offer to their clients. Alongside the API, the firm also launched its white label solution, which is being used by more than 20 partners, including Raisin. The leading fintech in the savings and investment space is now able to expand its investment product portfolio in Germany to include an all-new alternative asset class. This gives the company an opportunity to become a one-stop-shop for a complete range of financial products.
“If you don’t offer private equity, sooner or later your competitor will.”
Once a preserve of institutional investors and family offices, individual investors are increasingly banking on private market opportunities. The appeal is clear-cut – the right investments in private equity have historically outperformed public equities across cycles, while offering important portfolio diversification benefits¹.
By some estimates, 50 percent of assets under management in private equity is expected to come from retail investors in 2023². The number of households globally with more than $1 million to invest is growing fast and has already exceeded 20 million in 2021³. “If you don’t offer these investment opportunities now, sooner or later your competitor will,” concludes Simon Bär.
Find out more about integrating private equity on your platform here.
¹Private Equity Index vs S&P 500 index: Past performance is no guarantee of future returns. CA US Private Equity (PE) Index as sourced by Cambridge Associates’ Q4 2020 “Index and Selected Benchmark Statistics” report. The Cambridge Associates Private Equity Index is a pooled horizon IRR calculation based on quarterly data compiled from over 8,300 private equity funds, including fully liquidated partnerships, formed between 1986 and 2020. S&P 500 Total Return Index as sourced from Yahoo Finance. S&P 500 TR Index data are annual compounded return calculations which are time weighted measures and are shown for reference and directional purposes only. The CA PE Index is not an investable index and is used solely for illustrative purposes. The CA PE Index includes only Buyout and Growth Equity funds which matches the investment opportunities currently offered by Moonfare. Due to the fundamental differences between the two calculations, direct comparison of IRRs to time weighted returns is not recommended. The chart shows the net growth of a $100 hypothetical initial investment in the referenced indexes on December 31, 1999. Index data does not include the effect of Moonfare’s feeder fees, that are levied on top of the private equity funds offered and are estimated to decrease their net returns by c. 2.3% on an annual basis. The index is denominated in USD and so the returns that an investor receives may increase or decrease depending on FX changes.
²Mittelman, Melissa. “Blackstone Sees Half of Its Assets Coming From Individuals.” Bloomberg.com, Bloomberg, 6 Mar. 2018.
Benefit from what institutional investors already know: the greatest shareholder value comes from private markets, and funds like those offered on Moonfare have generated an average IRR of 19% — outperforming the S&P 500 by 13%.*
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