It doesn’t seem to work for me. I’m using Extensis Universal Type Client, which adds a shortcut in the Windows Fonts folder to the actual font file in an Extensis cache folder. This seems to be a similar behaviour to what Appu was mentioning. Fonts are picked up fine in MS Word etc, but not in Lunacy.
I’ve tried restarting but that hasn’t fixed it. Below is an example of what the fonts look like when they’ve been activated in Universal Type Client - unfortunately at our organisation there isn’t another way of installing fonts directly.