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Raisin sets its sights on democratising access to private equity

Through a partnership with Moonfare, Raisin is adding a new asset class.

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Kim Felix Fomm/Raisin.

German investing and deposit marketplace Raisin DS is adding a new asset class to its lineup in the form of private equity.

Through a partnership with fintech Moonfare—itself aimed at democratising access to private equity investments—Raisin is adding private equity investments to its investment platform (known as WeltSparen in Germany).

The addition means that Raisin now offers deposit and savings via its marketplace of accounts 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 that they can yield long-term returns that are three to five per cent higher than those of the global stock market,” said Raisin’s chief investment officer Kim Felix Fomm.

“However, most private customers are unable to take advantage of this asset class due to high entry barriers.”

Working with Moonfare means the minimum investment amount for these private equity funds will be €200,000 with an annual management fee of 0.8 per cent, far below the traditional minimum investment amounts.

“More and more successful companies are being taken off the stock market by private equity funds, meaning that private customers looking to tap into their growth can only do so through private equity,” added Fomm.

While Raisin launched exclusively as a savings marketplace, it now manages over €1.5bn in ETF investments since launching into that asset class in 2018.

Last year its investments expanded to include ESG funds and Kimm hinted to AltFi that Raisin planned to bring its investments to the UK in the future.

Last June Raisin surprised the industry by merging with its main European rival, Deposit Solutions, to become Raisin DS.

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