⟩ Tell me about fund of funds?
Investments made in a fund whose primary activity is investing in other private equity funds.
The fund of funds model is used by investors looking for:
☛ Diversification but have insufficient capital to diversify their portfolio by themselves
☛ Access to top performing funds that are otherwise oversubscribed
☛ Experience in a particular fund type or strategy before investing directly in funds in that niche
☛ Exposure to difficult-to-reach and/or emerging markets
Superior fund selection by high-talent fund of fund managers/teams