Germany-based Moonfare is considering tapping M&A and partnership opportunities to accelerate its growth ambitions and global expansion plans, Managing Director Yuri Narciss told Mergermarket.
The company, an online private equity investment platform for individual investors, is eyeing growth through overseas expansion, new distribution channels, and an enhanced product offering, said Narciss.
It would consider M&A targets such as technology-based companies, which could help Moonfare develop new products, he said. Distribution agreements with intermediaries, banks or multi-family offices – such as Fidelity’s exclusive partnership with the company – are also attractive, he continued.
Valuation boost in next fundraise
Bolstered by its growth strategy, Moonfare projects that its next funding round will propel the fintech startup into unicorn territory, Narciss said.
Moonfare raised USD 125m in Series C financing led by New York-based Insight Partners and backed by Fidelity International Strategic Ventures, as announced in November 2021. Industry estimates put Moonfare at a post-money valuation of USD 700m in the fundraise.
Although it has no concrete funding plans yet, Moonfare aims to double or triple the Series C funding size in its next round, which could materialize in the coming 12-18 months or later, Narciss said.
It would consider an investor blending strategic and financial support – like existing investors Insight Partners and Fidelity – in the next round, said Narciss.
The company is receptive to approaches from financial and legal advisors for its next round, he said.
Proceeds from the next fundraise will be used to continue Moonfare’s expansion plans in Western Europe, Asia, and the US, he said.
Founded in 2016, the company has raised USD 185m to date. Founder and CEO Steffen Pauls owns a majority stake in Moonfare, according to Narciss.
With EUR 1.5bn in assets under management, Moonfare has offered 45 private market funds to investors, he said. The pre-profit company typically charges most clients an around 1% set-up fee and 50bps per year on committed capital, said Narciss. It has 2,500 clients.
The company operates in 22 countries and employs 160 staff in Berlin, Hong Kong, London, and Luxembourg. It also plans to open offices in Singapore and Zurich.
Narciss considers Luxembourg-based Titanbay and Berlin-based Liqid to be Moonfare’s peers.
