In a move marking a significant turning point in the world of alternative investments, Moonfare, a company renowned for its commitment to democratizing private equity investments, is launching a new strategy under the advanced ELTIF 2.0 regime. This strategy is particularly tailored to provide retail investors with unprecedented access to the private equity sector.
Moonfare’s Mission and The ELTIF 2.0 Strategy
The ELTIF (European Long-Term Investment Fund) initiative aligns seamlessly with Moonfare’s mission to make private equity more accessible to a wider audience. Sporting a minimum investment of 10,000, the ELTIF aims to draw in retail investors, enabling them to invest alongside institutional investors in funds that typically necessitate a minimum participation of $10 million.
The strategy is set to offer investment opportunities in third-party private equity funds and co-investments, predominantly targeting buyout transactions in established, profitable companies, with a modest number of growth investments also included.
The Significance of Well-Structured ELTIFs for Retail Investors
Steffen Pauls, Moonfare’s CEO, underscores the importance of providing retail investors with well-structured ELTIFs that deliver competitive performance, protection, and education. The fund-of-funds structure will enable diversification across various sectors, geographies, and managers, with the portfolio including over 50 underlying companies.
Moonfare’s Partnership with Lexington Partners
Moonfare’s partnership with Lexington Partners introduces a secondary liquidity mechanism, allowing investors to trade their fund stakes for cash twice a year or on an ad-hoc basis under certain conditions, although liquidity is not guaranteed.
This game-changing ELTIF 2.0 strategy is a significant stride towards the democratization of alternative investments, offering individual investors new gateways into the private equity world.
