Dear Valued Member of the Moonfare Network,
Good to have you back for this month's Satellite.
In this edition, we're looking at crossover funds, vehicles gaining attention as this year's IPOs post some of the largest valuations in history — a good reminder of how much value some companies can build before they list.
Crossover funds are designed around an idea that a listing shouldn't force an exit. These structures invest in pre-IPO companies, hold through listing and use a public-market sleeve to handle potential redemptions. Read our latest report on what crossover funds offer and how they compare to traditional closed-ended alternatives.
Flexibility of crossover funds, however, only matters if you're investing with the right manager. Dispersion across crossover vehicles is wide, just as it is in private markets generally.
This returns gap is easy to underestimate until you see the numbers. Our proprietary research modeled PE vintages from 2000 to 2023 and found top-quartile funds compounded roughly twice the capital of median funds over a 10-year hold. Once again, the old truth of private markets holds: who you invest with matters more than when.
How LPs can invest in public and private markets — with one allocation
The wall between public and private markets is eroding. Crossover funds are the vehicles built to follow capital across.
Private market returns are neither random nor consistent. Here’s why.
Mid-market in private equity: why it pays to look beyond the headlines
Higher interest rates, higher stakes for manager selection
Meet the Cinven dealmaker behind some of Europe's largest deals
