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By Shanu SHERWANI, Private Equity Analyst
In this month’s article, I wanted to talk about funds of funds (FOF) in private equity and how this is an excellent avenue for an investor seeking exposure to private equity. Funds of funds investments are made by investors into a fund that makes investments into a predetermined number of underlying funds (also known as sub-funds). Through exposure to many funds, and in turn, many companies, investors can achieve diversification while only making one financial commitment. The purpose of this article is to examine the attractiveness of fund of funds, their advantages, and the types of investors for whom they are appropriate.
There are a variety of reasons why investors choose to invest in funds of...
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