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.