• Germany’s oldest private bank teams up with Berlin-based fintech company to offer private equity solutions
• The private equity asset class was highly successful in 2019 and currently offers favourable entry valuations
430-year-old private bank Berenberg and digital private assets investment platform Moonfare, founded in 2016, start a partnership to provide Berenberg customers with digital access to top-tier private equity funds.
Private equity experienced significant growth in 2019, with global assets under management standing in excess of 4 trillion US dollars. The asset class consists of a variety of strategies, such as buy-out, venture capital and growth, and has in previous years consistently out-performed other asset classes. It currently boasts particularly favourable entry valuations, and can also be used to diversify portfolios. Very high minimum levels of investment and restricted access previously meant that investments in private equity were only an option for institutional investors and ultra-high-net-worth families.
“We are delighted to offer our customers outstanding access to this asset class through our cooperation with Moonfare,” says Klaus Naeve, Head of Wealth Management Germany at Berenberg. “The selection of private equity offers, combined with low minimum levels of investment for this asset class and a completely digital process, is unique in the European market,” says Mr Naeve.
Berlin-based fintech company Moonfare allows qualified individuals to invest directly in selected private equity funds starting from a minimum investment of 200,000 euros. Investors will receive access via a digital platform, that allows quick, uncomplicated investments whilst complying with regulatory requirements. Moonfare’s Investment Committee, which consists of experts from the private equity industry, selects top-tier funds through an in-depth due diligence. From this selection of funds, Berenberg then chooses the funds it deems to be the most promising and offers these to its customers.
Berenberg Wealth Management offers each individual customer a personalised service. Berenberg’s advisors draw on an extensive network of specialists to offer customised solutions to their customers, which are always backed by Berenberg’s first-class know-how. With 120 equity analysts, the bank is one of the largest analyst institutes in Europe. Its fund managers received multiple awards, and its competence centres develop specific solutions for entrepreneurs, foundations and family offices.
Thanks to the partnership with Moonfare, Berenberg’s advisors are now able to add top-tier private equity funds to their portfolio recommendations when they match the customer’s investment goals and strategy. Berenberg’s clients benefit from access to high return investments and have the opportunity to further diversify their portfolios to include another asset class. Both the advisors and their clients have direct access to the digital Berenberg/Moonfare platform, where they can review and subscribe for investment opportunities. The platform is optimised for efficient processes, transparent data access and comprehensive reporting. This new development positions the Berenberg/Moonfare platform as the leading private market offering in German private banking.
“Historically, access to private equity funds was exclusive for institutional investors committing more than 10 million euros per fund. By allocating 25% or more to alternative investments, this exclusive group boosted their portfolio returns over decades. We are delighted that our partnership benefits investors by combining Berenberg’s wealth management expertise and tailored advice with Moonfare’s technology and unmatched access to the best private investment opportunities,” says Dr. Steffen Pauls, founder and CEO of Moonfare.
Founded in 1590, Berenberg is one of Europe’s leading privately owned banks today with its Wealth and Asset Management, Investment Bank and Corporate Banking divisions. Headquartered in Hamburg and led by managing partners, Berenberg maintains a strong presence in the financial centres of Frankfurt, London and New York.
Moonfare was founded in 2016 and is now active in several European countries and in Asia. The fintech company offers high-net-worth private investors, banks and asset managers access to top tier private equity funds at lower minimum amounts and lower fees than previously available. Investing starts with as little as 200,000 euros in funds that typically require minimums of several million US dollars. Moonfare allows individuals to invest in Private Equity like a professional.