For investors who want exposure to multiple AIF strategies (e.g., a mix of Private Equity, Venture Capital, and Real Estate) but don’t want to conduct due diligence on individual managers, a **Fund of Funds (FoF)** is an ideal solution.
A FoF is an AIF that primarily invests in other AIFs. It provides instant diversification across multiple fund managers, vintage years, and asset classes. While it involves a ‘double layer’ of fees (the FoF fee plus the underlying AIF fee), the access and professional curation can outweigh the cost for many sophisticated investors.
