Fund of Funds

A fund of funds pools capital to invest in a portfolio of other investment funds. This structure offers diversification and access to specialized managers. It’s often used by investors who want exposure to a range of asset classes, including venture capital and private equity, without selecting individual funds directly. Management fees can be higher due to the layered structure.

Key Takeaways

  • Invests in a portfolio of other investment funds.
  • Offers diversification and access to specialized managers.
  • Common in venture capital and private equity portfolios.
  • Higher management fees due to layered structure.

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