How it Works

How it Works


Process

Truffle has developed a four-step process that will enable its members to invest in Private Markets funds. Eligible Truffle members can invest in as many funds as they choose, with a minimum fund investment amount of £5,000.

Given the nature of Private Markets funds, each fund will be available for investment for a finite period of time, before being replaced by alternative funds – consequently, Truffle expects a continuously evolving fund line up for members to select from. 

Truffle does not provide investment advice – the presence of a fund on the Truffle Platform should not be viewed as a recommendation.

1. Apply

Membership of Truffle is free. The full eligibility criteria are explained during the registration process. In most cases you will need to meet the FCA defined criteria of either (a) a high net worth investor or (b) a certified or self-certified sophisticated investor. This is explained further during the application process.

As part of the Truffle application process, we will check your knowledge of private markets to make sure you have a good understanding of the types of investments available through Truffle. Our website contains lots of information for you to review, and you may also want to speak to an independent financial advisor authorised by the FCA.


2. Review

Truffle’s experienced team curates a constantly evolving selection of leading Private Markets funds. Truffle members will be able to access detailed information enabling them to make an informed decision on whether to invest. This will include information about the fund’s strategy, the team behind it, and the historical track record.

Each fund will only be available for a limited period before being replaced by new funds. This allows Truffle’s members to build a diversified private markets portfolio over time.

Note that Truffle Invest does not provide investment advice – the presence of a fund on the Truffle Platform should not be viewed as guidance or a recommendation.


3. Invest

Once you have chosen a fund you want to invest in, you will be directed through the online subscription process. This involves a few discrete steps:

a. We may need to confirm your understanding of the fund, to make sure you understand the key features of the investment you are making.

b. When you make your first investment through Truffle Invest, you will need to provide some basic information allowing Truffle to open an account at our custodian on your behalf (effectively like a bank account).

c. The final stage of the subscription process is the transfer of capital to your custodian account. This payment is done via an online transfer. When you make an investment your capital is sent directly to the client account at the custodian. The custodian is an independent third-party firm, authorised and regulated by the FCA, with a 35-year operating history. Your uncalled capital and share of the fund investment will be held by the custodian for the duration of the investment.

At no stage in the subscription process does Truffle hold, or have control over, your cash. This responsibility lies with the third-party custodian.


4. Monitor

Once you’re invested in at least one fund, you can review regular performance updates on your investments via your personal Truffle member account page. Distributions (i.e. profits) from your investments will be paid directly into your nominated bank account by the custodian shortly after they are made by the underlying fund. We’ll let you know by email when these distributions are made.


Structure

When you invest with Truffle, your investment is combined with that of other members also wanting to invest in a particular fund. This aggregation process is necessary to gain access to the underlying fund given the high headline minimum investments amounts.

As part of the subscription process, you will need to electronically sign documentation relating to the investment you are making. Truffle's Terms & Conditions layout the full details relating to the structure of the investment, and the nature of an investor's relationship with Truffle.


Truffle's Role

Truffle’s team and platform are involved throughout the process, from creating and maintaining the bespoke technology that underpins the platform, to sourcing and obtaining access to leading private funds.


1. Technology & Structure

Truffle has developed bespoke technology that facilitates the investment process, handling investor onboarding, account opening, and performance reporting through a personal online account. 


2. Sourcing & Access

Truffle leverages its team’s deep experience in private investing to identify and negotiate access to market-leading private funds. Accessing leading funds is key in private investing, with significant dispersion between the best and worst performing managers. This access is only possible due to the unique relationships of Truffle’s team and advisers.

Truffle does not provide investment advice. The presence of a fund on the Truffle platform should not be regarded as a recommendation or guidance.


3. Monitoring

Truffle will provide quarterly updates on all fund investments made through the platform, in addition to a live valuation feed which is received directly from the third-party custodian.


Truffle Fees

Truffle’s fee structure is designed to be simple and offer fair value to investors. Investing in Private Markets funds is traditionally complex and expensive – Truffle’s innovative technology has reduced these costs, enabling smaller investors to access the market.


1. Simple

Truffle’s fees cover all underlying expenses incurred to operate the structure. This includes the third-party custody fee to ensure the secure holding of your investment.


2. Value 

Given the complexity of investing in Private Markets funds (regulatory considerations, sourcing, obtaining access, legal & structuring etc.), Truffle believes its fees compare favourably to other investment platforms offering traditional easy-to-access shares and funds.


Fee Summary

As with all investment platforms, the underlying funds charge their own fees - these are charged in addition to Truffle's fees. These fund-level fee structures will vary by fund and are detailed on the fund descriptions on the Truffle platform. 

Truffle does not receive any fee from the underlying managers ensuring Truffle’s interests remain closely aligned with those of its investors.

Please see Truffle's Fee Schedule for full details.

Your capital is at risk. The value of your investment may go up as well as down. You may lose all your invested capital. Investment made through Truffle Invest Ltd are not covered by the UK Financial Services Compensation Scheme (“FSCS”). Investing in Private Markets involves risks, including loss of capital (as outlined above), illiquidity, absence of control, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Investments should only be made by investors who understand these risks and if in doubt should consult a fully qualified independent financial advisor. Tax treatment depends on individual circumstances and is subject to change in future.

Past performance is not a reliable indicator of future results. Target returns are not guaranteed and actual returns may vary significantly from target returns. We do not give advice or make investment recommendations to you. No communications through this website or any other medium should be construed as such. See Key Risks and Terms and Conditions for further information.

Truffle Invest Ltd is an Appointed Representative (FRN: 816214 ) of Met Facilities LLP. This website has been approved as a financial promotion by Met Facilities LLP which is authorised and regulated by the UK Financial Conduct Authority (FRN: 587084). The investment opportunities listed on this website are not offers to the public in general. Investments can only be made by investors once they have satisfied certain investment criteria. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the platform, and any investment decision should be made on the basis of all available information. Where possible, Truffle Invest will provide access to the offering documentation of the underlying fund. When this is not possible, investors should only proceed with an investment if they are satisfied that they have sufficient information to make an informed investment decision. Any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Truffle Invest Ltd is registered in England with registered company number 11276896 and registered office at Truffle Invest Ltd, 67 Wingate Square, London, SW4 0AF.

© 2019 Truffle Invest Limited. All rights reserved.