Glossary
Fund of Funds
Fund of Funds is an investment vehicle that allocates capital across multiple Private Markets funds rather than investing directly in companies. Investors thereby gain access to a diversified portfolio of fund managers, strategies, and Vintage Years, typically with an additional fee layer.
At a glance
- Fund of Funds provide broader diversification across managers and strategies, but typically carry a two-tier fee structure.
- They give smaller investors access to funds that would otherwise be closed or available only to large institutions.
Frequently asked questions
A Fund of Funds is particularly suited to investors seeking broad diversification across managers and strategies without the capacity to conduct extensive due diligence at the individual fund level. However, the additional fee layer reduces net returns and must be weighed carefully.
Part of the topic
Private Markets
This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.