BERLIN, July 7, 2021 — Moonfare, the leading digital investment platform for top-tier private markets funds, has signed the Principles for Responsible Investment (PRI), the United Nations–supported organisation with over 4,000 signatories worldwide.
PRI signatories commit to responsible investment principles that provide a framework for integrating environmental, social and governance (ESG) factors into their decision-making processes.
“With the growth of our assets under management at Moonfare, we will continuously redouble our focus on the responsibility that comes with managing these large sums,” says Moonfare founder and CEO Steffen Pauls. “Signing the PRI allows us to once again underscore our commitment to backing managers who hold themselves to the highest standards.”
ESG as a lever for driving returns across the private equity industry
Across the private equity industry, investors are increasingly seeing ESG as a lever for driving returns. Considering ESG factors upstream can help future-proof investments that may face increasingly tight regulatory environments before their holding period has elapsed.
According to Pitchbook’s “2020 Sustainable Investment Survey,” 95% of private equity fund investors already evaluate ESG risk factors within their investment process or will be increasing their focus on ESG risk factors.¹
This focus on ESG is especially strong in Europe, where investors in private equity funds have allocated the most capital — $190 billion, as of June 2020 — using responsible and sustainable criteria like the PRI, according to a Bain & Company analysis of Preqin data.
Driving sustainable investment using the Moonfare platform
Moonfare will first and foremost implement the PRI framework within its fund-selection process, which assesses different private markets funds across key areas like persistence of returns, rigor of the team’s deal filter and integration of ESG standards through both target selection and operational value creation at portfolio companies. Fund managers’ implementation of responsible investment principles will continue to be a key factor in Moonfare’s fund selection process.
“Sustainability and the integration of ESG principles help form the core of our investment philosophy at Moonfare,” says Moonfare Investment Director Sweta Chattopadhyay, who leads sustainability topics from within the Moonfare investment team. “It is something our clients care deeply about and, as long-term investors in private markets, we tend to share their view. We believe that this approach also ultimately leads to better risk-adjusted returns for our portfolio.”
“We are very pleased to welcome Moonfare as a PRI signatory,” PRI CEO Fiona Reynolds says. “In joining PRI, Moonfare commits to considering ESG factors in its investment and ownership decisions. We look forward to working with the team.”
Many of the fund managers whose strategies Moonfare has offered on its platform have signed the UNPRI, including KKR, EQT, Permira, Apax Partners, Genstar, AlpInvest Partners, Glendower Capital, Cinven, Lexington Partners and Oakley Capital.
About the PRI
The PRI works with its international network of signatories to put the six Principles for Responsible Investment into practice. Its goals are to understand the investment implications of ESG issues and to support signatories in integrating these issues into investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.
The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice. The Principles were developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system.
The six key principles are:
Moonfare offers individual investors access to top private markets investment opportunities for the first time. With a technology-powered onboarding process and asset management platform, Moonfare allows clients to register and invest directly in the funds on its platform in as little as 15 minutes and with minimums from as low as €50,000 for professional investors.
The Moonfare investment team conducts ground-up due diligence on all funds. Fewer than 5% of available funds pass this process and make it onto the Moonfare platform. This focus on quality is one reason Moonfare has won the trust of more than 1,600 clients who have invested more than €900 million on its platform to date.
Moonfare was named one of LinkedIn’s top 10 German startups in 2020. The company also partners with banks and asset managers, including Berenberg, one of the oldest private banks in Europe, and Fidelity International.
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