What is a good fund I size for a fund of funds? Does the same 5-10M guidance apply as a standard fund?
What is a good fund I size for a fund of funds? Does the same $5-10M guidance apply as a standard fund?
I
I
Fund targets should be set based on the GPs ability raise capital, rather then by other external targets. The minimum fund size for a Delaware fund is $2.5m to justify the operational costs. In other domiciles, it's considerably higher due to the operational cost.
A fund of funds may also have higher operational costs than a typical venture capital fund, due to increased complexity with accounting, reporting, taxes, etc.