Private Funds Glossary

Fund of Funds (FoF)

Definition: A Fund of Funds (FoF) is an investment strategy where capital from multiple investors is pooled together to invest in a portfolio of underlying investment funds. Instead of directly investing in individual securities or assets, an FoF invests in other funds, typically targeting a specific asset class or investment strategy.

Example: A Fund of Funds may invest in a combination of hedge funds, private equity funds, and venture capital funds. By diversifying investments across different funds, an FoF aims to achieve broader exposure and reduce the risk for its investors.

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