This announcement follows Fidelity’s recent move into private credit, adding to its alternative assets capabilities. It has already started to offer property funds. 

Fidelity International, has formed an exclusive distribution pact with private investments markets platform Moonfare. The agreement will focus on institutional and wholesale clients.

Under the agreement, Fidelity will also invest in a minority stake in Moonfare and appoint Christian Staub, managing director for Europe Fidelity International, to join Moonfare’s advisory committee. Fidelity is the first institutional investor to take an equity stake in Moonfare, which was founded in 2016 and is based in Germany. 

The partnership starts from April 2021 in countries such as Germany, Switzerland, Italy, France and Austria. More markets will covered at a later stage. 

This announcement follows Fidelity’s recent move into private credit, adding to its alternative assets capabilities. It has already started to offer property funds. 

To enter the Moonfare platform, clients can invest from €50,000.

The pact comes at a time when traditional asset classes look more risky and less rewarding, 

“Extreme global debt burdens and sustained negative real rates are leading to higher risk and uncertainty for long-term asset allocators,” Andrew McCaffery, global chief investment officer, Fidelity International, said. “The traditional 60/40 model has been challenged recently and, as a result, alternative investments, such as in private equity and debt, have begun to play an important role in investors’ portfolios as they look to diversify and enhance long-term returns.” 

“Until now, private market funds have only been accessible to a limited group of investors,” Fidelity’s Staub said. “By partnering with Moonfare, our ambition is to democratise the asset class, providing access to the benefits alternative assets can offer with products carefully curated by an experienced team.”