GLOSSARY

Fund of funds definition

What does Fund of funds mean?

A fund set up to invest in several other funds. Fund of funds are specialist private equity investors and have existing relationships with firms. They may be able to provide investors with a route to investing in particular funds that would otherwise be closed to them. Investing in fund of funds can also help spread the risk of investing in private equity because they invest the capital in a variety of funds, but can create several layers of fees for investors.

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