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00:00YOU HAVE OTHER BIG PLAYERS, BLACKROCK, APOLLO GETTING INTO THIS. YOUR MINIMUM INVESTMENT IS ABOUT 50,000 EUROS. SMALLER THAN THE MULTIMILLIONS OFFERED BY MOST. WHY IS NOW THE TIME FOR RETAIL AND PRIVATE EQUITY? > > A GREAT QUESTION AND THIS IS A REALLY INTERESTING ASSET CLASS FOR A NUMBER OF REASONS. IT HAS NOT BEEN AVAILABLE TO INDIVIDUAL INVESTORS. MY PERSONAL BACKGROUND IS WORKING ON THE INSTITUTIONAL SIDE, AT PENSIONS, ADVISING PENSION FUNDS. I CANNOT PERSONALLY INVEST MY PENSION FUND IN THE ASSET CLASS. ACCESS HAS BEEN LIMITED. YOU SEE WHAT IS HAPPENING IN THE PUBLIC MARKET. WE ARE LIVING LONGER, WE NEED THESE SAVINGS. THIS IS AN ASSET CLASS THAT IS VERY INTERESTING FROM THE PERSPECTIVE OF MITIGATING INFLATION, THE VOLATILITY, PROVIDING RETURNS, AND IT IS ACTUALLY NECESSARY FOR INDIVIDUAL INVESTORS. DANI: WE DO SEE WHAT IS GOING ON WITH PUBLIC MARKETS RIGHT NOW. IS THERE NOT SOME EXTENT THAT IF YOU HAVE RETAIL IN PRIVATE EQUITY AND YOU MAKE IT MORE LIQUID THAT THERE IS AN OPPORTUNITY IT BECOMES MORE VOLATILE LIKE WE ARE WITNESSING? > > THIS IS AN INTERESTING QUESTION AND FOR US, VERY IMPORTANT. A LOT OF THE VALUE CREATION YOU SEE IN PRIVATE EQUITY COMES FROM THE ILLIQUIDITY TO A CERTAIN EXTENT. PRIVATE EQUITY FIRMS BY THE COMPANIES, HOLD ON FOR FIVE YEARS, CREATE THE VALUE, BUT INDIVIDUAL INVESTORS NEED THAT LIQUIDITY MORE FOR VARIOUS REASONS. BECAUSE OF THAT, MOONFARE HAS LOOKED AT WHAT WE CAN DO FOR OUR CLIENTS. WE HAVE A SECONDARY MARKET YOU CAN SELL. THE PERSPECTIVE AS YOU GO IN UNDERSTANDING THE ILLIQUIDITY AND THE LONG-TERM HOLD OF THESE INVESTMENTS. IT IS IMPORTANT THAT EDUCATION AND MAKING SURE INVESTORS APPRECIATE THAT, BUT AT THE SAME TIME YOU NEED ILLIQUIDITY, YOU HAVE AN OPTION. WE ARE NOT TRYING TO MAKE THIS -- DANI: BUT HAVE YOU SEEN ANY CHANGE IN BEHAVIOR IN THE PAST WEEK, THE PAST MONTH, AS THERE ARE WIDER MACRO FEARS? > > IT HAS BEEN A VERY VOLATILE ENVIRONMENT AND RIGHTLY SO. PEOPLE ARE WONDERING WHERE IS THE BEST PLACE TO PUT THEIR MONEY? PEOPLE ARE BEING MORE THOUGHTFUL. WE HAVE SEEN PRIVATE EQUITY TEND TO PERFORM WELL IMMEDIATELY POSTRECESSION. IT IS A BENEFICIARY OF THE FACT THAT VALUATIONS GO DOWN IN THESE TYPES OF ENVIRONMENTS. YOU HAVE OPPORTUNITIES TO BUY WELL. WE KNOW INCREASED VALUATIONS OVER THE PAST YEAR HAVE BEEN A FACTOR IN PUBLIC AND PRIVATE MARKETS SO THIS IS AN INTERESTING TIME TO BE GOING INTO PE. WE HAVE SEEN THAT ACROSS ALL SECTORS OF PE. WE ARE VERY EXCITED ABOUT THIS INVESTMENT ENVIRONMENT. DANI: I GUESS THAT IS HOW YOU HAVE TO BE, YOU HAVE TO HAVE CAUTION. WE STARTED OFF BY TALKING, 50,000 EUROS MINIMUM INVESTMENT, WHICH IS DIFFERENT FROM THE VERY HIGH NET WORTH THAT WOULD USUALLY BE TARGETED BY PRIVATE EQUITY. DO YOU SEE A FUTURE WHERE IT IS A THOUSAND OR A COUPLE HUNDRED? EVERY DAY INVESTORS ABLE TO INVEST IN PRIVATE EQUITY? > > WE HOPE SO. WE ARE LOOKING INTO WAYS -- WE HAVE A MISSION OF DEMOCRATIZING PRIVATE EQUITY. IN THE PAST YOU NEEDED A MINIMUM OF A MILLION. I THINK IT COMES TO -- I MENTIONED BEFORE IT IS A PARALLEL EFFORT. WE ARE TRYING TO DO THIS BUT IN A MEASURED WAY. WE ARE ALSO MAKING SURE OUR CLIENTS REALIZE THAT EVEN IF YOU ARE PUTTING IN THE LOWER TICKETS , YOU UNDERSTAND THE ILLIQUIDITY OF THE ASSET CLASS. DANI: IS THERE STILL MORE EDUCATION TO BE DONE? > > DEFINITELY. THIS IS NOT AN ASSET CLASS AT THE LOWER END -- IT IS NOT LIKE YOU ARE SPEAKING ABOUT AT THE SAME WAY YOU ARE SPEAKING ABOUT THE PUBLIC MARKETS. THE EDUCATION PROCESS NEEDS TO HAPPEN WE THINK THIS IS AN ASSET CLASS THAT IS BENEFICIAL IN PERSONAL ACCOUNTS AND SAVINGS. IT HAS A ROLE TO PLAY WITHIN A WELL DIVERSIFIED PORTFOLIO. I REMEMBER SEEING DATA WERE ULTRA HIGH NET WORTH INDIVIDUALS TEND TO PUT 10% OF THEIR TOTAL ASSETS IN PRIVATE INVESTMENTS. HIGH NET WORTH INDIVIDUALS -- YOU CAN SEE THAT DIFFERENTIAL AT THE HIGHER END. PEOPLE ARE STAYING ALIVE LONGER, THEY NEED SAVINGS, THEY NEED HIGHER RETURNS. IT DEFINITELY HAS A PLACE WITHIN THE PORTFOLIO.

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Moonfare Investment Director on Private Equity Access

Moonfare Investment Director Sweta Chattopadhyay discusses the limited access to private equity. She speaks with Bloomberg's Dani Burger on "Bloomberg Daybreak: Europe." (Source: Bloomberg)

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