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In private equity fund of funds, investors commit to a fund, which in turn makes commitments to a predetermined number of underlying funds. Investors achieve diversification through exposure to a high number of funds, and in turn a high number of companies, with just one commitment. This article seeks to analyze the performance of fund of funds, their strengths and weaknesses, and the types of investors they make sense for.
https://canterburyconsulting.com/blog/why-do-investors-choose-fund-of-funds/
