Moonfare’s Investor Community Continues to Allocate to Private Equity in Uncertain Market Conditions

Moonfare, a leading global digital private equity platform, grew its assets under management (AUM) by nearly 50% to €2.5 billion in the 12 months ending March 2023, as individual investors continue to show a strong appetite for private market assets during the uncertain economic outlook.

The strong worldwide growth highlights investors’ widespread desire to access alternatives in search of diversification and higher risk-adjusted returns.

In the US, AUM almost tripled from $67 million to nearly $197 million over that timeframe. Meanwhile, AUM in Singapore rose by nearly 130% to €68.9 million in the same period.

Moonfare’s community of investors grew by more than 33% to 3,617 in the year ending Q1 2023, while Moonfare’s global community increased by two-thirds to almost 54,000 over the same period (number of registered users on the platform).

In the context of this fast-growing demand for private markets, Moonfare increased the number of funds offered on its platform to 96, up 45% from Q1 2022.1

Steffen Pauls, Founder and CEO of Moonfare, said: “Our continued growth outlines that, for more and more investors, private equity is becoming a ‘must have’ in their portfolios. This is particularly salient in the current environment, as private markets asset classes can boost risk-adjusted returns and diversification benefits relative to traditional stock and bond portfolios.”

Increasingly, investors are abandoning traditional ‘60/40’ stock and bond portfolio allocations by adding in a mix of private assets to build potential upside and bolster their investments. Research from Hamilton Lane, for example, has shown that portfolios diversified with private equity and credit can offer superior risk-adjusted returns when compared with portfolios consisting of public equity and fixed income securities.2

This is particularly significant during times of economic uncertainty, when private equity can showcase its potential. Indeed, research shows that some of the best private equity vintages in terms of returns follow recessionary periods.3