Secondary market is closed.
Our secondary market.
A path to early liquidity.
A path to early liquidity.
Moonfare holds a semi-annual digital secondary market. This structured auction enables eligible investors looking for early liquidity to sell their Moonfare allocations to other members or our institutional partner, Lexington Capital.
Liquidity cannot be guaranteed. Subject to demand.
Features
and benefits
and benefits
On demand
Moonfare has partnered with the world's largest and longest-running operator of private equity secondaries, Lexington Partners. Together, we bring institutional liquidity to the Moonfare platform.
Full service
Throughout the process, a Moonfare team member will be on standby to help you out. Our team closely monitors and manages the auction process to ensure an efficient and optimal outcome for all clients on our platform.
Digital, through and through
It's our way of revolutionising the way things are done; no cumbersome processes or paper-based methodologies here.
Semi-annual structured auction
Twice a year — in the spring and fall — we hold an auction for clients who want to sell their stakes in Moonfare’s private equity funds or acquire new stakes. Buyers in this auction process can also upsize their existing stakes.
Liquidity on the secondary market is not guaranteed.
Auction Timeline
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Frequently asked
questions
questions
How is the Net Asset Value (NAV) associated with a fund investment determined?
NAVs reflect the value of an investor’s stake in a private equity fund. Fund managers report NAV to their investors quarterly and according to strict valuation guidelines. The fund managers Moonfare works with are large organisations with significant investors, like life insurance companies and pension funds; they have high standards around accuracy and controlling the valuation process. Moonfare and our investors benefit from these high standards. The NAV reported to our investors additionally includes any potential cash reserves and liabilities of the feeder vehicles.
How are remaining capital commitments considered with respect to Net Asset Value (NAV)?
Buyers and sellers on the secondary market use NAV as a reference for pricing the stake involved in their transactions. The buyer assumes the obligation to meet the remaining capital commitments in full.
What kinds of fees should I expect?
Moonfare’s secondary market fees are:
- Payable only by the seller
- Payable only if a transaction is fully consummated (i.e. success-fee based)
- Based on the Total Exposure* of the fund commitment being sold, defined as the sum of:
- The net purchase price received; AND
- The unfunded commitment released
*minimum fees apply (see below)
What is the fee amount?
Moonfare will charge the seller the higher of:
- 5.0% of Total Buyer Payment Obligation (Total Buyer Payment Obligation= Unfunded Capital Commitment + current net asset value (NAV) of the interest); OR
- EUR 5,000 flat fee *
EXAMPLE I
Capital commitment: EUR 100,000
Contributed capital: EUR 25,000
Current NAV of the interest: EUR 20,000
Unfunded capital commitment: EUR 75,000
Purchase price for the interest: EUR 16,000 (80% of NAV)
Total Buyer Payment Obligation = EUR 91,000
5.0% of Total Buyer Payment Obligation = EUR 4,550
Flat fee = EUR 5,000
Fee to be charged for transfer: EUR 5,000 for transfer
EXAMPLE II
Capital commitment: EUR 500,000
Contributed capital: EUR 125,000
Current NAV of the interest: EUR 150,000
Unfunded capital commitment: EUR 375,000
Purchase price for the interest: EUR 139,500 (93% of NAV)
Total Buyer Payment Obligation = EUR 514,500
5.0% on Total Buyer Payment Obligation = EUR 25,725
Flat fee = EUR 5,000
Fee to be charged for the transfer: EUR 25,725 for transfer
*Moonfare may lower the fees for certain transactions exceeding a minimum transaction volume to be set by Moonfare in its sole discretion.
Is my identity made public to other buyers or sellers?
It's necessary to disclose the identity of either transacting party to the respective counterparty when a transaction is executed — but not during the auction process.
Are secondary market transactions reversible or cancellable?
A transaction becomes legally-binding and irreversible once legal agreements have been executed by both buyer and seller. Prior to signing the agreement, either the buyer or seller can withdraw from the process.
When can I buy or sell interests?
A potential buyer or seller can indicate interest to participate in the Moonfare secondary market at any time via the Moonfare platform. Moonfare will conduct a structured auction process on a semi-annual basis, usually in the spring and fall each year, to facilitate transactions between buyers and sellers.
How are offers to buy and sell matched in the Moonfare secondary market auction?
Moonfare matches bids that emerge through the auction to provide sellers the best price available. Higher bids from buyers are filled first. In case of any remaining supply (i.e. stakes offered by sellers for auction), Moonfare will fill orders starting with the next highest price until all supply is sold — while respecting the seller’s reserve price.
The minimum transaction size between any buyer and seller is €100,000. In case of a stalemate between different offers to buy or sell, larger orders take preference.
Stakes offered for sale in the auction can only be sold in their entirety, either to one sole buyer or to several different buyers provided that the total original stake is sold in its entirety. Moonfare reserves the right, at its sole discretion and with a view to achieve the most favourable outcome for its existing investors and funds, to assign buyers and sellers provided the general auction rules are maintained. Moonfare reserves the right to cancel or abort any auction if the consummation of the transaction would not be beneficial to its investors, platform and/or partners.
When do transactions settle? When should I expect to send or receive funds?
Once a buyer and seller are matched, documents must be completed and funds transferred within the periods provided in the match notification. Moonfare will facilitate the execution of completed transfers once documents are approved and funding is confirmed from all participants.
When does my order become binding in the Moonfare secondary market auction?
Bids are binding upon the close of the auction. If you wish to change or cancel your bid, you may contact us before then.
Which entity is responsible for Moonfare's secondary market?
The secondary market is operated by Moonfare GmbH.
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.