I would like to give you an update on how we are encountering the ongoing Covid-19 pandemic and resulting high volatility in the financial markets. I am aware that many of you are running businesses and manage investments that are strongly impacted and would like to thank you for your concern and ongoing support for our business.
How has Moonfare responded to the crisis?
My first concern was to ensure that our customers, our employees and their families were safe. One of the benefits of being a digital platform business is that we are extremely flexible in terms of where we work and can interact with investors and partners via digital means. All Moonfare employees are therefore working from home. We also decided to postpone all of our planned Moonfare City Dinners, which we hope to resume hosting later in the year.
While I did not expect specifically a virus outbreak of such tragic dimensions, I have been anticipating and with my management team preparing for a strong and prolonged market downturn for a while. Therefore, we are well prepared and have measures implemented that will allow us to operate even through an extended downturn. well beyond 2021. Due to our fundraising last year we have a strong cash position and won’t be affected with changes in the financial markets.
Are investments into Moonfare’s funds safe?
The short answer is a decisive yes.
- The long investment horizon of Private Equity inherently shields investments of cyclical fluctuations. Even if there were valuation adjustments, for all funds offered on the Moonfare platform there will be a long time until realization and companies will create a lot of value in recovering markets. Depending on a fund’s strategy a bear market could even pose additional opportunities.
- The structure of the Luxembourg investment vehicles protects our investors’ funds from outside influences as the Feeder directly invests into the respective funds and is managed by an independent provider.
- When I started Moonfare, I took a fundamental decision to only offer thoroughly selected, well established top tier private equity funds on the platform with an outstanding track record. The GPs we are partnering with differentiate themselves from other funds by their established playbooks for any market cycle. They have managed successfully through the 2008 GFC and have both the financial and operational resources to turn uncertainty to their advantage.
What comes next?
While we are hoping for a quick recovery as much as anyone else, we are preparing for an extended downturn. As a commitment to our investors, partners and the Moonfare-community we will focus in the coming weeks on the following areas, where we hope to add value and make a difference:
- Our Investor Success team is actively reaching out to all our registered users to offer support, address concerns and create transparency. We will make it clear that we will always be there for our investors and will ask and listen carefully for ways to add value.
- Our investment and marketing teams are collecting and curating relevant information from our GP partners and other sources to help stay abreast of the latest developments in private markets. We will share these through our various digital channels and provide proprietary insight to the Moonfare community.
- Last but not least we will continue to bring the best private investment opportunities to the Moonfare platform.
I am confident that Moonfare and private markets investing will come out of this crisis stronger and well prepared for accelerated growth.
Stay safe and healthy.
Founder and CEO Moonfare