5 Things Every Investor Should Know About Private Market Funds

In short: Private market funds give investors access to assets outside public stock markets—private companies, infrastructure, and real estate—usually through regulated structures such as ELTIFs. Here are five basics to know before making your first investment.

1. They are designed for long-term value growth.Private market funds invest in assets that build value over time—private companies, infrastructure, and real estate. Patience is more critical to value growth here than in most other asset classes.

2. They present return scenarios, not guarantees.Each fund’s Key Investor Document (KID) contains return scenarios—ranging from stress scenarios to favorable scenarios—thereby providing investors with insight into a range of possible long-term outcomes. None of these scenarios is guaranteed.

3. They are regulated, transparent, and meet institutional standards.As EU-regulated vehicles, private market funds combine access to private markets with strong governance and reporting standards.

4. The minimum investment varies from fund to fund—some have none at all.Not every private market fund on Moniflo has a minimum investment.If a fund specifies a minimum investment, it is listed on the respective fund page—there is no standard amount for all funds.

5. They complement UCITS/OGAW funds rather than replacing them.UCITS/OGAW funds keep your portfolio liquid. Private market funds are designed for long-term wealth accumulation. With Moniflo, you can manage both in one place.

FAQ

Q: What is a "return scenario"?

‍A: A possible outcome presented in the fund’s Key Investor Document (KID)—typically ranging from stress scenarios to favorable scenarios. It provides investors with insight into possible performance ranges, but makes it clear that none of these outcomes is guaranteed.

Q: How much capital is required to invest in private market funds?

‍A: Through Moniflo, the minimum investment per order is €250. If a specific fund has a higher minimum investment requirement, the higher amount applies.

Q: Do private market funds use debt (leverage)?

‍A: Some private market funds may raise debt—within the limits set by regulations and the fund’s rules—provided that the debt is used for investments in eligible assets and the regulatory conditions are met.

Q: What types of assets can private market funds invest in?

‍A: Eligible assets include unlisted companies, real assets (infrastructure, affordable housing, energy), SMEs, and intellectual property. Under ELTIF 2.0, there is additional flexibility for fund-of-funds structures, green bonds, and fintech investments.

Q: Are there any restrictions on how many assets a single fund may hold?

‍A: Yes—regulatory requirements mandate diversification limits to limit concentration risks.

Private market investments are long-term and illiquid in nature. They are not suitable for everyone. Please review all fund documentation carefully before investing. Your capital is at risk.