Moonfare, a global platform and manager of private equity, has introduced its first semi-liquid strategy.
The approach is driven by Moonfare’s chief investment officer, Sanjay Gupta, who stated that it targets two significant topics in the private equity industry: secondary investments and liquidity.
Gupta stated: “As the most liquid segment of all private equity assets, secondary investments are particularly well suited to a semi-liquid offering. There is minimal friction between private equity’s historical illiquidity and increasing investor demand for a potential exit earlier than the traditional ten-year tie-in.”
Targeting a balance between GP-led continuation vehicles and LP-led secondary transactions, Moonfare’s proprietary secondaries strategy will take advantage of its experience in direct investments as well as its connections to reputable managers and intermediaries.
Blue-chip managers’ funds and high-quality assets will be the main focus.
According to Moonfare, the approach might provide advantages that more conventional private equity structures would not, such as defined assets, profits reinvestment, the capacity to keep assets for longer than the customary ten-year holding period, and a compound interest-advantaged cash flow profile.
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By GlobalDataDue to the way that primary fundraising growth is driving secondary deal flow and record secondaries fundraising in recent years, Gupta anticipated that secondary funds, which could offer a favourable risk-return profile, significant J-curve mitigation, shorter time to distributions, and the prospect for broad diversification, will keep rising.
Moonfare provides access to private market investment possibilities for qualified individual investors, family offices, and advisers. Eligible investors can register and make direct online investments with Moonfare due to its digital onboarding process and asset management platform.
It has provided more than 110 private-market funds to date, with a focus on real asset categories like infrastructure, venture capital, growth, and private equity buyouts from some of the top global general partners, including KKR, Carlyle, and EQT.
In addition, Moonfare provides secondaries and its own unique funds, which include carefully chosen co-investments.