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Investors

Fund of funds

A fund whose investors' money is spread across other funds instead of individual companies.

Funds of funds pool capital and invest it with a range of managers. They give smaller investors access to top managers and are often a source of early capital for emerging managers, though they add a second layer of fees.

Why it matters when you raise
Funds of funds source widely and often back newer managers, so they are a natural early target.
Related terms
Limited partnerEmerging managerManagement fee
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