Fund of Funds

Fund of Funds refers to an investment vehicle that pools capital to invest in a diversified portfolio of other investment funds, rather than directly in individual securities or assets. It provides access to multiple fund managers and strategies, including hedge funds, private equity, or venture capital, enabling greater diversification and risk mitigation. For family offices, Fund of Funds can be an efficient way to access specialized expertise, reduce due diligence complexity, and achieve exposure to alternative investments without directly managing multiple fund relationships. However, it typically involves an additional layer of fees and may dilute control over specific investment decisions.