Fund of Funds

A fund of funds (FOFs) can be described as a fund structure investing into multiple other funds, this type of fund usually invests into mutual funds, real estate, private equity, or hedge funds.

This type of fund looks after a wide diversification and asset allocation, it can either be “fettered” meaning that it will invest into funds managed by one specific management company, or it can also be “unfettered” which in this case it can invest into a wider range of managers from different companies.

What are the key advantages of a FOFs?:

Great diversification between the strategies
Risk & volatility mitigation
Investors have access to funds in which they could not get access to
Manager(s) expertise into multiple assets class, fund(s) type

What type of strategies are eligible?:

Hedge funds
Private equity
Green energy allocations
Real estate
Credit
Crypto assets
Long-only
etc

Why using the SLP for Fund of Funds?

The use of the Special Limited Partnership is particularly advantageous thanks to its flexible legal and tax environment, with key benefits for a FOFs include:

No risk diversification rule – the AUM can be invested in the same assets
No minimum capital
No limitation in which types of strategy the Fund of Funds can invest
Issuance of several classes of units or tracking shares
Possibility to use also managed account
Unlimited number of investors
No external auditor required
Full tax transparency – no withholding tax upon distribution of the dividends or profit
The Special Limited Partnership is a vehicle that can be used to set-up a FOFs easily 1-2 Weeks timeframe.

Get in touch with our Fund team to
discuss your investment fund project

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