Fidelity International, the $706bn asset manager, has acquired a minority stake in Berlin-based fintech Moonfare, a tie-up which will allow its client to access a wide range of private market funds.
Founded in 2016, Moonfare oversees around €500m on its platform and has more than 1,000 users, including banks, family offices and their advisers.
Moonfare offers access to a range of private equity funds with a minimum investment of €100,000, and collaborates with some of the biggest private equity firms including KKR, Carlyle, EQT and Warburg Pincus. As a result of the partnership with Fidelity — the first institutional investor to acquire a stake in Moonfare — clients will be able to access private market funds on the platform with a minimum €50,000 investment.
Christian Staub, managing director for Europe at Fidelity International, said there was growing demand among clients to access private market strategies.
“There are powerful forces within the industry which will make this venture a success,” he said.
READ Berenberg partners with fintech to give clients access to private equity
“Private banks and retail outlets have woken up to the fact that the old balanced portfolio construct, such as equity and fixed income, is no longer working when interest rates are at or close to zero. Clearly you need to bring additional diversification and other sources of return into a portfolio.
“In the institutional space, clients are allocating more to private equity, infrastructure and other private assets. It’s started with the high net worth part of the market, but it is starting to trickle down.”
Financial details of the Fidelity’s minority stake in Moonfare, made via the asset manager’s International Strategic Ventures arm, were not disclosed. However, Staub will join Moonfare’s advisory committee.
Fidelity’s tie-up with Moonfare comes just two months after the asset manager made a foray into the private credit market, hiring a team from European digital bank MeDirect. The team brought with it a €400m European collateralised loan obligation fund.
Steffen Pauls, founder and chief executive of Moonfare, said: “Private equity want to tap into the largest untapped pool of capital, which is private individuals. It’s a strategic priority for many of them.
“Many of them are building up resources. But the problem is they cannot send fundraising people to investors who want to invest €50,000. There is a necessity for a model that is truly automated and scalable. This is exactly what we’ve built.”
Last year Germany’s oldest private bank, Berenberg, partnered with Moonfare to provide its customers access to private equity funds.
To contact the author of this story with feedback or news, email David Ricketts