Private equity's foundation
Moonfare’s buyout portfolio is the perfect entrypoint for private equity investing — giving you access to a curated selection of top-tier buyout funds for one low-minimum investment.
How does it work? Through our buyout portfolio, you indirectly invest in undervalued or underperforming companies and turn them around. The target result? A significant profit upon acquisition or IPO and historically-exceptional returns for investors.
Buyout funds have typically
outperformed public markets1
outperformed public markets1
1Past performance is not an indication of future performance. Returns cannot be guaranteed.
Our next vintage is here
Moonfare’s inaugural buyout portfolio (below) has been one of our most popular strategies — closing with €70 million of capital raised, 40 percent above its target.
The Moonfare buyout portfolio II is the next vintage in the series and targets 10 funds — comprising an entirely new selection of current and upcoming buyout-oriented strategies.
Asset allocation of the Moonfare buyout portfolio (previous vintage)
Source: Moonfare, as of 30 June 2021
Frequently asked questions
How does the Moonfare buyout portfolio II differ from a fund of funds?
The Moonfare buyout portfolio II offers all the benefits of a fund of funds without the drawbacks. Like a fund of funds, it provides instant diversification with one ticket and helps allocate across multiple strategies with a lower minimum. The difference? You already know part of the portfolio composition upfront — unlike in a fund of funds. which usually has a blind-pool risk. Moreover, a fund of funds usually has an additional layer fee. In contrast, our buyout portfolio II invests alongside the feeders of the Moonfare direct offering — which means we don't need an additional feeder.
How do capital calls work?
We will call 10-15 percent of your commitment two to four weeks after the relevant close. After you invest that 10-15 percent, we'll follow the capital call cadence of the underlying funds. Given the diversification in the portfolio and the administrative burden each call might pose, we aim to call on a quarterly basis. As a result, you should expect up to four calls a year.
How do you choose the funds? What does the asset allocation look like?
The Moonfare buyout portfolio II aims to build a balanced and diversified portfolio by primarily investing in mid to large cap buyout private equity funds. There's also flexibility to invest in adjacent opportunities — including co-investment, turnaround and secondaries funds. You can also directly invest into operating companies. We identify the portfolio funds with the goal of offering investors long-term, attractive returns while balancing risk through diversification across geographies, fund managers and investment strategies. Buyout private equity funds, co-investment funds, turnaround and secondaries funds all offer unique features — complementing each other well in a portfolio.
Will the funds in the portfolio change?
No, the funds in the portfolio won't be sold once they have been subscribed.
How does it work in terms of currencies?
Your investment will be denominated in EUR and its performance's reference currency will be EUR. When an underlying fund is USD denominated, Moonfare will not engage in any hedging activities. That means that the Moonfare fund and, ultimately, the investors, will bear any currency exchange risks.
About Moonfare
Moonfare aims to lead a new era of private equity investing by creating the opportunity for higher returns for more people. We are building the world's most engaged investor community to inspire investments that drive the world forward.
Important information
Moonfare does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. Alternative investments in private placements, and private equity investments via feeder funds in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Prospective investors should carefully consider the risk warnings and disclosures for the respective fund or investment vehicle set out therein. The value of an investment may go down as well as up and investors may not get back their money originally invested. Past performance is not necessarily a guide to future performance. An investment in a fund or investment vehicle is not the same as a deposit with a banking institution. Please refer to the respective fund documentation for details about potential risks, charges and expenses. Additionally, investors will typically receive illiquid and/or restricted membership interests that may be subject to holding period requirements and/or liquidity concerns. In the most sensible investment strategy for private equity investing, private equity should only be part of your overall investment portfolio. Further, the private equity portion of your portfolio may include a balanced portfolio of different private equity funds. Investments in private equity are highly illiquid and those investors who cannot hold an investment for the long term (at least 10 years) should not invest.
In the United States, securities products and services are offered through Moonfare Securities USA, LLC (“Moonfare Securities”). Moonfare Securities is a registered broker-dealer (brokercheck.finra.org) with the United States Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority, Inc. (www.finra.org) and the Securities Investor Protection Corporation (www.sipc.org).
- 1 Minimum investment may vary by country and local regulation.
- 2 Source: McKinsey "Private Markets Annual Review 2022"
- 3 Past performance is no guarantee of future returns.