Raisin aims to democratize access to private equity
Through a partnership with Moonfare, Raisin adds a new asset class.
Image source: Kim Felix Fomm/Raisin.
German investment and deposit market Raisin DS adds a new asset class to its lineup in the form of private equity.
Through a partnership with fintech Moonfare, itself aimed at democratizing access to private equity investments, Raisin is adding private equity investments to its investment platform (known as WeltSparen in Germany).
This addition means Raisin now offers deposits and savings through its account marketplace across Europe, liquid investment products like ETFs, pension funds and now illiquid private equity funds. .
“Private equity investments are important assets that can help strengthen financial portfolios, with studies showing they can generate long-term returns three to five percent higher than those of the global stock market,” said Raisin’s chief investment officer, Kim Felix Fomm. .
“However, most private clients cannot take advantage of this asset class due to the high barriers to entry.”
Working with Moonfare means that the minimum investment amount for these private equity funds will be €200,000 with an annual management fee of 0.8%, well below traditional minimum investment amounts.
“More and more successful companies are being taken off the stock market by private equity funds, which means private clients looking to leverage their growth can only do so through private equity” , added Fomm.
While Raisin was launched exclusively as a savings marketplace, it now manages over €1.5 billion in ETF investments since its launch in this asset class in 2018.
Last year his investments expanded to include ESG funds and Kimm hinted that he AltFi that Raisin planned to bring his investments to the UK in the future.
Last June, Raisin surprised the industry by merging with its main European competitor, Deposit Solutions, to become Raisin DS.