Fund of Funds defined: A fund of funds is a private equity fund that invests in multiple private equity funds. Fund-of-funds are set-up to diversify investor money across funds with different strategies or operating in different geographies. These funds also leverage relationships and provide access to well-established private equity funds that may otherwise not be open to smaller investors. Fund-of-funds promoters layer in an additional fee on top of the fees already associated with the funds being invested in.
Above is a definition for “Fund of Funds” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.
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