End-to-End Digital Experience
You can indicate your interest to buy/sell when the Moonfare Secondary Window opens
You will be notified of potential matches
You accept the match and your transaction is executed
Frequently Asked Questions
How are Net Asset Values (NAV) of the funds determined?
NAVs represent an updated assessment of investment value. This value is reported quarterly by the underlying fund managers and determined in line with strict valuation guidelines. The fund managers we work with are large organizations with large investors like life insurance companies and pension funds, who have high standards with regards to accuracy and control of the valuation process. Moonfare and its investors benefit from their high standards. The NAV reported to our investors additionally includes any potential cash reserves and liabilities of the feeder vehicles.
How are remaining commitments and existing NAV considered?
The Bid / Ask price indication is related to the NAV of the fund as per the most recent quarterly statement. Indications do not include the seller’s remaining commitments, however the buyer assumes the obligation to meet this commitment in full.
What is the fee structure? Are there transaction costs?
Moonfare currently offers Secondary Windows as a service free of charge to investors. Depending on demand and experience with the service, we might change this model at a later stage.
Is my identity known to other buyers or sellers?
The identity of the transacting parties will be disclosed when a transaction is executed, not during the matching process.
Are secondary transactions reversible or cancellable?
You can change or cancel your order during the Secondary Market Window. Facilitated transactions are not reversible after having been executed. In the next Secondary Window, you can once again express your interest in buying or selling.
When can I buy or sell interests?
Interest to buy or sell may be indicated during secondary windows. After the secondary window is closed, our auctioning process commences after which buyers and sellers are notified. Transfer documentation and funding instructions are being provided to the transacting parties. Typically, a secondary window will be open for 7 days. Start and end dates are being broadly announced.
How are bids and offers matched?
Moonfare pledges to utilize a streamlined auctioning process yielding fair results at scale for both buyers and sellers. While a secondary window is open, an investor can indicate an interest to sell, stating the minimum reserve price for their whole commitment in a particular fund. In the meantime, buyers submit an interest to buy at a maximum price (the “Bid Price”). After the secondary window is closed, interest to buy and sell is analyzed and matches for a particular commitment size are made at the same clearing price, which is equal to the lowest Bid Price that enables all interested sellers with an appropriate reserve price to liquidate their stake. Commitments can only be sold in their entirety.
How are clearing prices determined?
Lower prices result in fewer sellers while higher prices result in fewer buyers. The clearing price is the single price at which the highest (commitment) volume of interested buyers and sellers are successfully matched.
When do the transactions settle? When should I expect to send or receive funds?
Once a trade is matched, documents are required to be completed and funds transferred within the periods provided in the match notification. Moonfare will facilitate execution of completed transfers once documents are approved and funding is confirmed from all participants. As part of the approval process, Moonfare will collect approval of transfers from the underlying fund‘s general partner, which cannot be unreasonably withheld.
Is my order binding?
Bids are binding upon the close of the Secondary Window. If you wish to change or cancel your bid, you may contact us before then.
A Solution for Traditionally
Long hold periods on direct private equity investments mean that invested capital is typically tied up for 5+ years until invested funds have been returned, and another 5+ years until the full capital gain has been received, limiting many investors’ willingness to participate in these opportunities.