Dear Valued Member of the Moonfare Network,
On 24 February 2022, the Russian army invaded Ukraine, marking a watershed moment in the post cold war era. The ensuing war has brought many hardships for the Ukrainian people as more than three million have fled the country so far. At this point, we would like to express our solidarity with the Ukrainians in their struggle for the right to self-determination, personal freedom and safety.
Here’s what you’ll find in this month’s Satellite:
Russia-Ukraine War: Mapping the Impact on Private Markets and Beyond
What is first and foremost a humanitarian crisis, the ongoing war in Ukraine has sent shock waves through the global economy, adding more risks to an already fragile economic recovery. The effects of the crisis are likely to be felt across markets for some time as we may face supply chain disruptions and rising costs in the energy and commodity markets. With the help of Moonfare’s Investment Manager Philip Meschke, we analysed key implications of the conflict, including:
📍The effects of the war on private markets
📍The reverberation of higher input costs in global business
📍Europe’s process towards energy independence as a source of growth
📍The consequences of this historic geopolitical shift
How Private Markets Will Change as They Open to Non-Professional Investors
Retail investors are gaining broader access to private equity opportunities – a trend that began in the US but is now expanding globally. This is a positive development, but it also means that the industry will need to become more accommodating to those with less investment expertise and smaller portfolios. There are a number of areas to which private equity investors need to pay attention to as this trend evolves.
The Case for Private Credit: Lower Volatility, Diversification Benefits and Downside Protection
Private debt has experienced unprecedented growth since 2009, becoming the third-largest asset class in the alternatives space - behind only private equity and real estate. In our most recent whitepaper, we argue that private debt can be a good addition to a mature portfolio inclusive of private equity for its lower volatility, diversification benefits and the downside protection offered by its attractive risk-return profile.
[VIDEO] Private Equity Fund Managers in Search for Best-in-Class ESG Investments
Part of the private equity industry's bet on sustainable investing is that by incorporating environmental, social and corporate governance (ESG) principles, fund managers can maximise value on sale. This race for best-in-class ESG investments is already underway: almost three-quarters of PE executives expect to capture an ESG premium in portfolio companies they are considering exiting.
To learn more about sustainable investing we invite you to watch our newest video and, if you’ve missed it, jump over to our comprehensive white paper that dives deeper into the intricacies of the strategy.
Interested in the exciting world of private markets and the exclusive investment opportunities it offers? Check our selection of top-tier private equity funds by logging on to the Moonfare platform.
If you have any questions, please reach out to one of our representatives. We will be happy to assist you.
Moonfare does not make investment recommendations and no communication, through this website or otherwise should be construed as a recommendation of any security. Alternative investments in private placements are highly illiquid, speculative, and involve a high degree of risk. Past performance is not indicative of future results. Investors may not get back their money originally invested and those who cannot afford to lose their entire investment should not invest. Prior to investing, carefully consider the respective fund documentation for details about potential risks, charges, and expenses. The value of an investment may go down as well as up. An investment in a private equity ("PE") fund or investment vehicle is not the same as a deposit with a banking institution. Investors receive illiquid and/or restricted membership interests that may be subject to holding period requirements and/or liquidity concerns. Investors who cannot hold an investment for the long term (at least 10 years) should not invest. In the most sensible investment strategy for PE investing, PE should only be part of your overall investment portfolio. The PE portion of your portfolio may include a balanced portfolio of different PE funds. For additional information, including Moonfare's affiliates, please see here.