Moonfare announced the final close of Moonfare Co-Investment Fund II, a Luxembourg-domiciled vehicle, at $83m, above target after raising the capital within 12 months.
The second-generation fund represents a 43% increase on the prior vintage, Moonfare Co-Investment Fund I, with the group pointing to sustained interest in co-investments among private wealth clients and smaller institutions.
Moonfare, which is headquartered in Berlin and operates in 24 countries, said the fund attracted commitments from eligible investors across more than 20 markets, including individuals, single family offices and smaller institutional investors. It highlighted particularly strong demand in Germany, the UK, the Netherlands and the US.
Investor appetite shifts
Steffen Pauls, Moonfare’s founder and co-chief executive, described investors as becoming more discerning as performance across private markets diverged, a trend he noted was increasingly visible beyond institutional limited partners. He added that the close reflected investor confidence in Moonfare’s “curated and selective approach to deliver strong returns.”
Philip Meschke, head of private equity at Moonfare, pointed to a “robust pipeline” of opportunities, supported by relationships with established firms and “a leading set of emerging managers” that he said were generating higher returns in specialist areas. In a period of increasing dispersion, he said Moonfare would remain “highly selective” in constructing a diversified portfolio for the vehicle.
Early deployment
Moonfare said Moonfare Co-Investment Fund II was already 30% invested, with deals completed alongside Hg, Vista and EQT. The fund will continue deploying capital progressively, targeting 12 to 15 co-investments, primarily in North America and Europe.
Moonfare expects the portfolio to span sectors including technology, financial and business services, healthcare, consumer and industrials. The fund is managed by Moonfare’s investment team and a dedicated co-investment committee. The platform expects a third vehicle, Moonfare Co-Investment Fund III, to launch within the next 12 to 18 months.
Moonfare had €3.9bn in assets under management as of the fourth quarter of 2025.
