Scale
A FoF aggregates resources from a pool o investors gaining scale to meet the minimum investment requirement of even the biggest funds. Moreover, having a relevant scale gives a FoF enough power to influence the governance of its invested funds assuring good practices. The FoF also offers large investors a one-stop-shop to invest in a portfolio of funds in any specific market.
Source: Adapted from de Pease, R. Private equity funds-of-funds: state of the market. 2000.
INVESTMENT FUNDS ARE NOT COVERED BY ANY GUARANTEE FROM THE ADMINISTRATOR, FUND MANAGER, INSURANCE OR FUNDO GARANTIDOR DE CRÉDITO – FGC. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS. IT IS HIGHLY RECOMMENDED THAT POTENTIAL INVESTORS READ THE FUND'S OFFERING DOCUMENTS BEFORE ANY INVESTMENT DECISION IS MADE.
