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Asked by

Community Member

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Fund Economics

What is the most common free structure for a fund of funds?

I know the 2 and 20 wouldn't apply here, since you are investing in directly in funds.

If 30% of the portfolio goes into Funds, and 70% is direct into companies (mostly coinvests), are you still considered a Fund of Funds?
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Answered by

Mike Suprovici

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Fund of Funds fees are typically 1 and 10. 

On the strategy you mentioned above, ti sounds like a classic VC Fund. You will not be able to do 70/30 though due to the VC exemption and the complexity with reporting. But it could be 80/20.

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